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C.H. Robinson Worldwide Inc (NAS:CHRW)
Beneish M-Score
-2.64 (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.

C.H. Robinson Worldwide Inc has a M-score of -2.64 suggests that the company is not a manipulator.

CHRW' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Max: 0.58
Current: -2.64

-3.06
0.58

During the past 13 years, the highest Beneish M-Score of C.H. Robinson Worldwide Inc was 0.58. The lowest was -3.06. And the median was -2.42.


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 C.H. 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 * 1.0724+0.528 * 0.9137+0.404 * 1.0497+0.892 * 0.9499+0.115 * 1.0591
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.099+4.679 * -0.0309-0.327 * 0.999
=-2.64

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,683 Mil.
Revenue was 3355.754 + 3299.741 + 3073.943 + 3210.853 = $12,940 Mil.
Gross Profit was 558.462 + 594.215 + 563.335 + 570.777 = $2,287 Mil.
Total Current Assets was $1,968 Mil.
Total Assets was $3,664 Mil.
Property, Plant and Equipment(Net PPE) was $226 Mil.
Depreciation, Depletion and Amortization(DDA) was $70 Mil.
Selling, General & Admin. Expense(SGA) was $1,428 Mil.
Total Current Liabilities was $1,800 Mil.
Long-Term Debt was $500 Mil.
Net Income was 129.028 + 143.09 + 118.963 + 126.583 = $518 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 129.567 + 143.111 + 104.15 + 253.893 = $631 Mil.
Accounts Receivable was $1,652 Mil.
Revenue was 3419.253 + 3545.088 + 3300.89 + 3357.202 = $13,622 Mil.
Gross Profit was 588.575 + 584.018 + 525.11 + 501.816 = $2,200 Mil.
Total Current Assets was $1,856 Mil.
Total Assets was $3,313 Mil.
Property, Plant and Equipment(Net PPE) was $190 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $1,368 Mil.
Total Current Liabilities was $1,581 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)
=(1682.686 / 12940.291) / (1651.794 / 13622.433)
=0.13003463 / 0.12125543
=1.0724

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)
=(2199.519 / 13622.433) / (2286.789 / 12940.291)
=0.16146301 / 0.17671851
=0.9137

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 - (1967.549 + 226.47) / 3664.062) / (1 - (1856.211 + 190.244) / 3312.565)
=0.40120582 / 0.38221439
=1.0497

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
=12940.291 / 13622.433
=0.9499

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))
=(63.08 / (63.08 + 190.244)) / (69.612 / (69.612 + 226.47))
=0.24900917 / 0.23511054
=1.0591

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)
=(1428.244 / 12940.291) / (1368.06 / 13622.433)
=0.11037186 / 0.10042699
=1.099

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 + 1799.797) / 3664.062) / ((500 + 1581.259) / 3312.565)
=0.62766323 / 0.62829228
=0.999

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
=(517.664 - 0 - 630.721) / 3664.062
=-0.0309

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.

C.H. Robinson Worldwide Inc has a M-score of -2.64 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 local exchange's currency.

C.H. Robinson Worldwide Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.92621.06810.77531.20960.95591.03021.08020.91441.02640.9576
GMI 0.93660.97131.06070.87881.15231.00211.04461.05020.9660.8854
AQI 1.00540.98381.13231.11380.89740.93361.87350.9960.8531.3328
SGI 1.15241.11591.17250.88331.2241.11451.09891.12261.05631.0004
DEPI 1.03441.06450.92051.11921.00741.0021.00640.77530.96061.0544
SGAI 1.04230.98970.93331.12340.86620.99791.0090.98581.03351.1194
LVGI 0.95890.99350.91861.03840.96911.06051.07171.43711.02270.9475
TATA -0.04690.0011-0.0524-0.00760.0205-00.04760.0243-0.0198-0.0655
M-score -2.65-2.32-2.66-2.46-2.15-2.39-1.74-2.48-2.59-2.75

C.H. Robinson Worldwide Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.00110.99341.02640.96970.96310.98040.95760.91140.98731.0724
GMI 1.03480.99360.9660.93530.91930.91050.88540.87470.8780.9137
AQI 0.94480.96060.8531.16851.16991.17111.33281.03781.00781.0497
SGI 1.08091.05531.05631.05641.04241.02691.00040.97220.95120.9499
DEPI 0.90590.95190.96061.10681.11011.08741.05440.92160.98031.0591
SGAI 0.97710.99541.03351.05651.07091.07921.11941.13071.13031.099
LVGI 1.39560.99541.02271.02321.01411.01040.94750.91070.92220.999
TATA -0.0018-0.0138-0.0198-0.0412-0.0454-0.0533-0.0655-0.0632-0.0556-0.0309
M-score -2.56-2.52-2.59-2.62-2.67-2.71-2.75-2.94-2.86-2.64
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