ARG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Airgas Inc was -0.93. The lowest was -3.57. And the median was -2.67.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Airgas Inc for today is based on a combination of the following eight different indices:
|M||=||-4.84||+||0.92 * DSRI||+||0.528 * GMI||+||0.404 * AQI||+||0.892 * SGI||+||0.115 * DEPI|
|=||-4.84||+||0.92 * 0.966||+||0.528 * 1.0018||+||0.404 * 0.9786||+||0.892 * 1.0458||+||0.115 * 0.9795|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0015||+||4.679 * -0.0594||-||0.327 * 0.9188|
|This Year (Mar15) TTM:||Last Year (Mar14) TTM:|
|Accounts Receivable was $708 Mil.|
Revenue was 1301.723 + 1331.82 + 1357.755 + 1313.587 = $5,305 Mil.
Gross Profit was 718.721 + 742.887 + 757.221 + 730.181 = $2,949 Mil.
Total Current Assets was $1,416 Mil.
Total Assets was $5,974 Mil.
Property, Plant and Equipment(Net PPE) was $2,952 Mil.
Depreciation, Depletion and Amortization(DDA) was $329 Mil.
Selling, General & Admin. Expense(SGA) was $1,979 Mil.
Total Current Liabilities was $1,129 Mil.
Long-Term Debt was $1,749 Mil.
Net Income was 87.723 + 93.199 + 98.312 + 88.852 = $368 Mil.
Non Operating Income was 3.363 + -0.238 + 0.081 + 1.869 = $5 Mil.
Cash Flow from Operations was 203.353 + 172.766 + 144.946 + 196.972 = $718 Mil.
|Accounts Receivable was $701 Mil.
Revenue was 1267.83 + 1242.846 + 1281.97 + 1279.891 = $5,073 Mil.
Gross Profit was 696.481 + 705.176 + 718.958 + 704.348 = $2,825 Mil.
Total Current Assets was $1,399 Mil.
Total Assets was $5,793 Mil.
Property, Plant and Equipment(Net PPE) was $2,802 Mil.
Depreciation, Depletion and Amortization(DDA) was $305 Mil.
Selling, General & Admin. Expense(SGA) was $1,889 Mil.
Total Current Liabilities was $1,331 Mil.
Long-Term Debt was $1,707 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(708.227 / 5304.885)||/||(701.06 / 5072.537)|
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(742.887 / 5072.537)||/||(718.721 / 5304.885)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1415.684 + 2951.766) / 5973.61)||/||(1 - (1399.087 + 2802.415) / 5793.314)|
4. SGI = Sales Growth Index
Ratio of sales in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
|DEPI||=||(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))||/||(Depreciation_t / (Depreciaton_t + PPE_t))|
|=||(305.306 / (305.306 + 2802.415))||/||(329.058 / (329.058 + 2951.766))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
|SGAI||=||(SGA_t / Sales_t)||/||(SGA_t-1 /Sales_t-1)|
|=||(1978.674 / 5304.885)||/||(1889.123 / 5072.537)|
7. LVGI = Leverage Index
The ratio of total debt to total assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((1748.662 + 1129.047) / 5973.61)||/||((1706.774 + 1330.775) / 5793.314)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(368.086 - 5.075||-||718.037)||/||5973.61|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Airgas Inc has a M-score of -2.73 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Airgas Inc Annual Data
Airgas Inc Quarterly Data