Switch to:
Ball Corp (NYSE:BLL)
Beneish M-Score
-2.51 (As of Today)

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.

Ball Corp has a M-score of -2.51 suggests that the company is not a manipulator.

BLL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.75   Max: -1.34
Current: -2.51

-3.75
-1.34

During the past 13 years, the highest Beneish M-Score of Ball Corp was -1.34. The lowest was -3.75. And the median was -2.69.


Definition

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 Ball Corp 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 * 1.092+0.528 * 0.9958+0.404 * 1.3768+0.892 * 0.9227+0.115 * 1.0705
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0119+4.679 * -0.0354-0.327 * 1.1208
=-2.51

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $908 Mil.
Revenue was 1756 + 1804.6 + 2097 + 2172.3 = $7,830 Mil.
Gross Profit was 340 + 370.6 + 406.7 + 397.2 = $1,515 Mil.
Total Current Assets was $2,323 Mil.
Total Assets was $10,059 Mil.
Property, Plant and Equipment(Net PPE) was $2,730 Mil.
Depreciation, Depletion and Amortization(DDA) was $293 Mil.
Selling, General & Admin. Expense(SGA) was $443 Mil.
Total Current Liabilities was $2,232 Mil.
Long-Term Debt was $5,408 Mil.
Net Income was -127 + 55.3 + 44.5 + 160.4 = $133 Mil.
Non Operating Income was -61 + -225.3 + -21 + -5 = $-312 Mil.
Cash Flow from Operations was -386 + 409.7 + 385.3 + 392.7 = $802 Mil.
Accounts Receivable was $901 Mil.
Revenue was 1923 + 2032.4 + 2238.9 + 2291.9 = $8,486 Mil.
Gross Profit was 362 + 395.5 + 431.6 + 445.5 = $1,635 Mil.
Total Current Assets was $2,468 Mil.
Total Assets was $7,661 Mil.
Property, Plant and Equipment(Net PPE) was $2,424 Mil.
Depreciation, Depletion and Amortization(DDA) was $280 Mil.
Selling, General & Admin. Expense(SGA) was $475 Mil.
Total Current Liabilities was $2,039 Mil.
Long-Term Debt was $3,152 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(908 / 7829.9) / (901.2 / 8486.2)
=0.11596572 / 0.10619594
=1.092

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.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(370.6 / 8486.2) / (340 / 7829.9)
=0.1926186 / 0.1934252
=0.9958

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2323 + 2730) / 10059) / (1 - (2467.9 + 2423.6) / 7660.5)
=0.49766378 / 0.36146466
=1.3768

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7829.9 / 8486.2
=0.9227

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))
=(280.1 / (280.1 + 2423.6)) / (292.5 / (292.5 + 2730))
=0.10359877 / 0.09677419
=1.0705

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)
=(443.3 / 7829.9) / (474.8 / 8486.2)
=0.0566163 / 0.05594966
=1.0119

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)
=((5408 + 2232) / 10059) / ((3152.1 + 2039.3) / 7660.5)
=0.75951884 / 0.67768422
=1.1208

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(133.2 - -312.3 - 801.7) / 10059
=-0.0354

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.

Ball Corp has a M-score of -2.51 suggests that the company will not be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Ball Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.33650.9010.73071.26381.52920.87461.01620.95320.98081.0188
GMI 0.98911.03720.97470.93120.96171.00431.00440.95050.96721.012
AQI 1.05410.98460.98761.03960.97411.01331.02290.98860.98081.3442
SGI 1.15131.1161.02320.97141.03881.13121.01210.96941.0120.9331
DEPI 1.01640.93850.92020.98131.22030.96091.08050.98481.08341.0782
SGAI 1.07711.00990.87011.17371.04530.9450.99861.12021.29120.8842
LVGI 1.04980.96241.01560.91841.03011.05991.01691.02811.01081.1143
TATA -0.0252-0.0651-0.0484-0.0265-0.0068-0.0692-0.0579-0.0517-0.0673-0.0424
M-score -2.16-2.76-2.94-2.41-2.01-2.81-2.71-2.85-2.87-2.58

Ball Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.95320.96050.95120.9190.98080.98671.09731.0931.01881.092
GMI 0.95050.92640.92150.92610.96721.0031.03421.0381.01210.9958
AQI 0.98861.04631.03290.99210.98080.93940.9550.96211.34421.3768
SGI 0.96940.9770.99810.9941.0121.00030.97590.96370.93310.9227
DEPI 0.98480.99561.03941.03631.08341.07631.06771.07751.07821.0705
SGAI 0.78860.7640.75840.6491.23481.2771.29671.33791.03671.0119
LVGI 1.02811.01010.97941.02121.01081.01341.00351.01061.11431.1208
TATA -0.0382-0.0558-0.0655-0.0551-0.0567-0.0561-0.0591-0.0636-0.0424-0.0354
M-score -2.73-2.78-2.81-2.80-2.81-2.82-2.73-2.77-2.61-2.51
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK