Switch to:
Ball Corp (NYSE:BLL)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

BLL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01   Max: -1.85
Current: -2.63

-3.01
-1.85

During the past 13 years, the highest Beneish M-Score of Ball Corp was -1.85. The lowest was -3.01. 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 * 1.0188+0.528 * 1.012+0.404 * 1.3442+0.892 * 0.9331+0.115 * 1.0782
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1562+4.679 * -0.0424-0.327 * 1.1143
=-2.63

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $754 Mil.
Revenue was 1804.6 + 2097 + 2172.3 + 1923.1 = $7,997 Mil.
Gross Profit was 370.6 + 406.7 + 397.2 + 362.2 = $1,537 Mil.
Total Current Assets was $2,184 Mil.
Total Assets was $9,777 Mil.
Property, Plant and Equipment(Net PPE) was $2,686 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $503 Mil.
Total Current Liabilities was $2,142 Mil.
Long-Term Debt was $5,054 Mil.
Net Income was 55.3 + 44.5 + 160.4 + 20.7 = $281 Mil.
Non Operating Income was -225.3 + -21 + -5 + -59.9 = $-311 Mil.
Cash Flow from Operations was 409.7 + 385.3 + 392.2 + -180.5 = $1,007 Mil.
Accounts Receivable was $793 Mil.
Revenue was 2032.4 + 2238.9 + 2291.9 + 2006.8 = $8,570 Mil.
Gross Profit was 395.5 + 431.6 + 445.5 + 393.9 = $1,667 Mil.
Total Current Assets was $2,314 Mil.
Total Assets was $7,571 Mil.
Property, Plant and Equipment(Net PPE) was $2,431 Mil.
Depreciation, Depletion and Amortization(DDA) was $281 Mil.
Selling, General & Admin. Expense(SGA) was $467 Mil.
Total Current Liabilities was $2,007 Mil.
Long-Term Debt was $2,994 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)
=(753.9 / 7997) / (793 / 8570)
=0.09427285 / 0.09253209
=1.0188

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)
=(406.7 / 8570) / (370.6 / 7997)
=0.19445741 / 0.19215956
=1.012

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 - (2184 + 2685.9) / 9777) / (1 - (2313.5 + 2430.7) / 7571)
=0.50190242 / 0.37337208
=1.3442

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
=7997 / 8570
=0.9331

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))
=(280.9 / (280.9 + 2430.7)) / (285.5 / (285.5 + 2685.9))
=0.10359198 / 0.09608265
=1.0782

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)
=(503.3 / 7997) / (466.5 / 8570)
=0.0629361 / 0.05443407
=1.1562

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)
=((5054.2 + 2141.6) / 9777) / ((2993.8 + 2006.8) / 7571)
=0.73599264 / 0.66049399
=1.1143

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
=(280.9 - -311.2 - 1006.7) / 9777
=-0.0424

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 -2.63 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 1.07711.00990.87011.17371.04530.9451.26490.88441.10121.0367
LVGI 1.04980.96241.01560.91841.03011.05991.01691.02811.01081.1143
TATA -0.0252-0.0651-0.0484-0.0265-0.0068-0.0692-0.0589-0.0416-0.0567-0.0424
M-score -2.16-2.76-2.94-2.41-2.01-2.81-2.76-2.77-2.79-2.61

Ball Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.89950.95320.96050.95120.9190.98080.98671.09731.0931.0188
GMI 0.9640.95050.92640.92150.92610.96721.00291.03411.03781.012
AQI 1.04390.98861.04631.03290.99210.98080.93940.9550.96211.3442
SGI 0.98990.96940.9770.99810.9941.0121.00030.97590.96370.9331
DEPI 1.03290.98480.99561.03941.03631.08341.07531.06771.07751.0782
SGAI 1.55080.78860.7640.75840.6491.23481.41691.43681.48751.1562
LVGI 1.02221.02811.01010.97941.02121.01081.01341.00351.01061.1143
TATA -0.0666-0.0382-0.0558-0.0655-0.0551-0.0567-0.0562-0.0591-0.0636-0.0424
M-score -2.99-2.73-2.78-2.81-2.80-2.81-2.85-2.76-2.80-2.63
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)

GuruFocus Premium Plus Membership

FEEDBACK