BAX 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 Baxter International Inc was -0.36. The lowest was -2.91. And the median was -2.62.
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 Baxter International 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 * 1.0164||+||0.528 * 1.0753||+||0.404 * 0.8623||+||0.892 * 0.755||+||0.115 * 0.7021|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1904||+||4.679 * -0.0376||-||0.327 * 0.8768|
|This Year (Dec15) TTM:||Last Year (Dec14) TTM:|
|Accounts Receivable was $2,151 Mil.|
Revenue was 2603 + 2487 + 3893 + 3764 = $12,747 Mil.
Gross Profit was 1072 + 1034 + 1920 + 1801 = $5,827 Mil.
Total Current Assets was $11,796 Mil.
Total Assets was $20,975 Mil.
Property, Plant and Equipment(Net PPE) was $4,386 Mil.
Depreciation, Depletion and Amortization(DDA) was $759 Mil.
Selling, General & Admin. Expense(SGA) was $3,639 Mil.
Total Current Liabilities was $5,750 Mil.
Long-Term Debt was $3,935 Mil.
Net Income was 205 + 1 + 332 + 430 = $968 Mil.
Non Operating Income was 59 + -91 + 67 + 74 = $109 Mil.
Cash Flow from Operations was 724 + 131 + 696 + 96 = $1,647 Mil.
|Accounts Receivable was $2,803 Mil.
Revenue was 4472 + 4197 + 4264 + 3951 = $16,884 Mil.
Gross Profit was 2224 + 2073 + 2041 + 1961 = $8,299 Mil.
Total Current Assets was $10,351 Mil.
Total Assets was $25,917 Mil.
Property, Plant and Equipment(Net PPE) was $8,698 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,005 Mil.
Selling, General & Admin. Expense(SGA) was $4,049 Mil.
Total Current Liabilities was $6,042 Mil.
Long-Term Debt was $7,606 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)|
|=||(2151 / 12747)||/||(2803 / 16884)|
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)|
|=||(1034 / 16884)||/||(1072 / 12747)|
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 - (11796 + 4386) / 20975)||/||(1 - (10351 + 8698) / 25917)|
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))|
|=||(1005 / (1005 + 8698))||/||(759 / (759 + 4386))|
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)|
|=||(3639 / 12747)||/||(4049 / 16884)|
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)|
|=||((3935 + 5750) / 20975)||/||((7606 + 6042) / 25917)|
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|
|=||(968 - 109||-||1647)||/||20975|
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.
Baxter International Inc has a M-score of -2.90 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
Baxter International Inc Annual Data
Baxter International Inc Quarterly Data