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CH Robinson Worldwide Inc (NAS:CHRW)
Beneish M-Score
-2.62 (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.

CH Robinson Worldwide Inc has a M-score of -2.62 suggests that the company is not a manipulator.

CHRW' s 10-Year Beneish M-Score Range
Min: -3.06   Max: 0.58
Current: -2.62

-3.06
0.58

During the past 13 years, the highest Beneish M-Score of CH Robinson Worldwide Inc was 0.58. The lowest was -3.06. And the median was -2.41.


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 CH Robinson Worldwide 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 * 0.9697+0.528 * 0.9353+0.404 * 1.1685+0.892 * 1.0564+0.115 * 1.1068
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0565+4.679 * -0.0412-0.327 * 1.0232
=-2.62

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,651 Mil.
Revenue was 3300.89 + 3357.202 + 3467.362 + 3502.918 = $13,628 Mil.
Gross Profit was 525.11 + 501.816 + 527.564 + 521.037 = $2,076 Mil.
Total Current Assets was $1,847 Mil.
Total Assets was $3,309 Mil.
Property, Plant and Equipment(Net PPE) was $191 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $1,302 Mil.
Total Current Liabilities was $1,651 Mil.
Long-Term Debt was $500 Mil.
Net Income was 106.476 + 112.947 + 124.981 + 118.596 = $463 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 100.395 + 208.104 + 176.954 + 113.928 = $599 Mil.
Accounts Receivable was $1,612 Mil.
Revenue was 3142.585 + 3152.882 + 3316.665 + 3288.262 = $12,900 Mil.
Gross Profit was 457.235 + 444.465 + 463.306 + 472.602 = $1,838 Mil.
Total Current Assets was $1,823 Mil.
Total Assets was $2,960 Mil.
Property, Plant and Equipment(Net PPE) was $164 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $1,167 Mil.
Total Current Liabilities was $1,380 Mil.
Long-Term Debt was $500 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)
=(1651.427 / 13628.372) / (1612.034 / 12900.394)
=0.12117566 / 0.12496006
=0.9697

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)
=(501.816 / 12900.394) / (525.11 / 13628.372)
=0.14244588 / 0.15229457
=0.9353

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 - (1846.915 + 191.141) / 3309.224) / (1 - (1823.082 + 163.957) / 2960.168)
=0.38412873 / 0.32874114
=1.1685

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
=13628.372 / 12900.394
=1.0564

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))
=(57.624 / (57.624 + 163.957)) / (58.703 / (58.703 + 191.141))
=0.2600584 / 0.23495861
=1.1068

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)
=(1302.155 / 13628.372) / (1166.693 / 12900.394)
=0.09554736 / 0.09043856
=1.0565

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)
=((500 + 1651.096) / 3309.224) / ((500 + 1380.489) / 2960.168)
=0.65003034 / 0.63526428
=1.0232

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
=(463 - 0 - 599.381) / 3309.224
=-0.0412

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.

CH Robinson Worldwide Inc has a M-score of -2.62 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.

CH Robinson Worldwide Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.0050.92621.06810.77531.20960.95591.03021.08020.91441.0264
GMI 0.98450.93660.97131.06070.87881.15231.00211.04461.05020.966
AQI 1.05311.00540.98381.13231.11380.89740.93361.87350.9960.853
SGI 1.31041.15241.11591.17250.88331.2241.11451.09891.12261.0563
DEPI 0.80381.03441.06450.92051.11921.00741.0021.00640.77530.9606
SGAI 0.96371.04230.98970.93331.12340.86620.99791.0090.98581.0335
LVGI 1.04780.95890.99350.91861.07030.94011.06051.07171.43711.0227
TATA -0.0195-0.05410.0011-0.0524-0.00760.0205-0-0.05340.0243-0.0198
M-score -2.31-2.69-2.32-2.66-2.48-2.14-2.39-2.22-2.48-2.59

CH Robinson Worldwide Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.08021.05240.98521.02210.91441.00331.00110.99341.02640.9697
GMI 1.04461.05681.03861.04611.05021.04611.03480.99360.9660.9353
AQI 1.87351.85341.88781.99170.9960.94080.94480.96060.8531.1685
SGI 1.09891.12151.12651.14731.12261.09311.08091.05531.05631.0564
DEPI 1.00640.91770.85460.7990.77530.86020.90590.95190.96061.1068
SGAI 1.0091.01591.05441.06620.98580.98450.97710.99541.03351.0565
LVGI 1.07171.08051.07491.49381.43711.43921.39560.99541.02271.0232
TATA -0.0537-0.0065-0.0355-0.02760.0243-0.0049-0.0018-0.0138-0.0198-0.0412
M-score -2.22-2.02-2.22-2.23-2.48-2.57-2.56-2.52-2.59-2.62
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