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Ball Corp (NYSE:BLL)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

BLL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2   Max: -1.74
Current: -2.83

-3.2
-1.74

During the past 13 years, the highest Beneish M-Score of Ball Corp was -1.74. The lowest was -3.20. 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 * 1.093+0.528 * 1.0378+0.404 * 0.9621+0.892 * 0.9637+0.115 * 1.0775
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4108+4.679 * -0.074-0.327 * 1.0106
=-2.83

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $983 Mil.
Revenue was 2097 + 2172.3 + 1923.1 + 2032.4 = $8,225 Mil.
Gross Profit was 406.7 + 397.2 + 362.2 + 395.5 = $1,562 Mil.
Total Current Assets was $2,383 Mil.
Total Assets was $7,727 Mil.
Property, Plant and Equipment(Net PPE) was $2,547 Mil.
Depreciation, Depletion and Amortization(DDA) was $283 Mil.
Selling, General & Admin. Expense(SGA) was $597 Mil.
Total Current Liabilities was $2,280 Mil.
Long-Term Debt was $2,879 Mil.
Net Income was 44.5 + 160.4 + 20.7 + 76 = $302 Mil.
Non Operating Income was -21 + -5 + -59.9 + 0 = $-86 Mil.
Cash Flow from Operations was 385.3 + 392.2 + -180.5 + 362.5 = $960 Mil.
Accounts Receivable was $934 Mil.
Revenue was 2238.9 + 2291.9 + 2006.8 + 1996.8 = $8,534 Mil.
Gross Profit was 431.6 + 445.5 + 393.9 + 410.7 = $1,682 Mil.
Total Current Assets was $2,379 Mil.
Total Assets was $7,615 Mil.
Property, Plant and Equipment(Net PPE) was $2,371 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $439 Mil.
Total Current Liabilities was $2,022 Mil.
Long-Term Debt was $3,009 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)
=(983.3 / 8224.8) / (933.5 / 8534.4)
=0.11955306 / 0.10938086
=1.093

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)
=(397.2 / 8534.4) / (406.7 / 8224.8)
=0.19704959 / 0.1898648
=1.0378

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 - (2382.6 + 2547.3) / 7727) / (1 - (2378.8 + 2371.1) / 7614.9)
=0.36199042 / 0.37623606
=0.9621

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
=8224.8 / 8534.4
=0.9637

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))
=(286 / (286 + 2371.1)) / (282.7 / (282.7 + 2547.3))
=0.10763614 / 0.09989399
=1.0775

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)
=(597.3 / 8224.8) / (439.3 / 8534.4)
=0.07262183 / 0.05147403
=1.4108

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)
=((2879.4 + 2279.6) / 7727) / ((3009 + 2021.9) / 7614.9)
=0.66765886 / 0.66066527
=1.0106

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
=(301.6 - -85.9 - 959.5) / 7727
=-0.074

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 -2.83 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 1.33650.9010.73071.38341.39710.87461.01620.95320.98081.1965
GMI 1.01011.03720.97470.90870.98551.00431.00440.95050.96721.012
AQI 1.05410.98460.98761.03960.97411.01331.02290.98860.98081.3442
SGI 1.15131.1161.02320.88741.1371.13121.01210.96941.0120.9331
DEPI 1.01640.93850.92021.12741.06210.96091.08050.98481.08341.0782
SGAI 1.06691.00990.87011.20821.01550.9450.99861.3311.08660.8842
LVGI 1.04980.96241.01560.91841.03011.05991.01691.02811.01081.1143
TATA -0.0277-0.0672-0.0507-0.0265-0.0055-0.0692-0.0579-0.0517-0.0673-0.0623
M-score -2.16-2.77-2.95-2.38-2.04-2.81-2.71-2.89-2.84-2.51

Ball Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.89950.95320.96050.95120.9190.98080.98671.09731.0931.1965
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 1.26551.20981.16681.15120.96911.19551.34771.36981.41080.986
LVGI 1.02221.02811.01010.97941.02121.01081.01341.00351.01061.1143
TATA -0.0657-0.0483-0.066-0.0757-0.0654-0.0673-0.0667-0.0694-0.074-0.0623
M-score -2.94-2.85-2.90-2.92-2.91-2.85-2.88-2.79-2.83-2.53
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