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CH Robinson Worldwide Inc (NAS:CHRW)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

CHRW' s 10-Year Beneish M-Score Range
Min: -3.06   Max: 0.58
Current: -2.5

-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 * 0.9934+0.528 * 0.9936+0.404 * 0.9606+0.892 * 1.0553+0.115 * 0.9519
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9954+4.679 * -0.0085-0.327 * 0.9954
=-2.50

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,641 Mil.
Revenue was 3467.362 + 3502.918 + 3142.585 + 3152.882 = $13,266 Mil.
Gross Profit was 527.564 + 521.037 + 457.235 + 444.465 = $1,950 Mil.
Total Current Assets was $1,825 Mil.
Total Assets was $2,942 Mil.
Property, Plant and Equipment(Net PPE) was $157 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $1,234 Mil.
Total Current Liabilities was $1,329 Mil.
Long-Term Debt was $500 Mil.
Net Income was 124.981 + 118.596 + 93.187 + 92.952 = $430 Mil.
Non Operating Income was 0 + 0 + -6.131 + -9.289 = $-15 Mil.
Cash Flow from Operations was 176.954 + 113.928 + 14.44 + 164.848 = $470 Mil.
Accounts Receivable was $1,565 Mil.
Revenue was 3316.665 + 3288.262 + 2994.267 + 2970.876 = $12,570 Mil.
Gross Profit was 463.306 + 472.602 + 455.722 + 444.632 = $1,836 Mil.
Total Current Assets was $1,753 Mil.
Total Assets was $2,892 Mil.
Property, Plant and Equipment(Net PPE) was $156 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General & Admin. Expense(SGA) was $1,175 Mil.
Total Current Liabilities was $1,306 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)
=(1640.634 / 13265.747) / (1564.997 / 12570.07)
=0.12367445 / 0.12450185
=0.9934

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)
=(521.037 / 12570.07) / (527.564 / 13265.747)
=0.14608208 / 0.1470178
=0.9936

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 - (1824.716 + 156.936) / 2941.784) / (1 - (1753.441 + 155.693) / 2891.568)
=0.32637746 / 0.33975822
=0.9606

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
=13265.747 / 12570.07
=1.0553

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))
=(54.061 / (54.061 + 155.693)) / (58.272 / (58.272 + 156.936))
=0.25773525 / 0.2707706
=0.9519

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)
=(1234.498 / 13265.747) / (1175.121 / 12570.07)
=0.09305906 / 0.09348564
=0.9954

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 + 1329.202) / 2941.784) / ((500 + 1306.231) / 2891.568)
=0.62180024 / 0.62465451
=0.9954

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
=(429.716 - -15.42 - 470.17) / 2941.784
=-0.0085

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 -2.50 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.99031.0050.92621.06810.77531.20960.95591.03021.08020.9144
GMI 0.99030.98450.93660.97131.06070.87881.15231.00211.04461.0502
AQI 0.93391.05311.00540.98381.13231.11380.89740.93361.87350.996
SGI 1.20141.31041.15241.11591.17250.88331.2241.11451.09891.1226
DEPI 1.59920.80381.03441.06450.92051.11921.00741.0021.00640.7753
SGAI 0.9890.96371.04230.98970.93331.12340.86620.99791.0090.9858
LVGI 0.99821.04780.95890.99350.91861.07030.94011.06051.07171.4371
TATA -0.0179-0.0195-0.05410.0011-0.0524-0.00760.0205-0-0.05340.0276
M-score -2.35-2.31-2.69-2.32-2.66-2.48-2.14-2.39-2.22-2.46

CH Robinson Worldwide Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9840.9931.08021.05240.98521.02210.91441.00331.00110.9934
GMI 1.04051.04991.04461.05681.03861.04611.05021.04611.03480.9936
AQI 0.97280.91151.87351.85341.88781.99170.9960.94080.94480.9606
SGI 1.0971.08551.09891.12151.12651.14731.12261.09311.08091.0553
DEPI 1.00221.03161.00640.91770.85460.7990.77530.86020.90590.9519
SGAI 0.95420.94691.0091.01591.05441.06620.98580.98450.97710.9954
LVGI 1.04481.01631.07171.08051.07491.49381.43711.43921.39560.9954
TATA -0.00830.0183-0.0534-0.0062-0.035-0.02710.02790.00050.0033-0.0085
M-score -2.44-2.33-2.22-2.02-2.22-2.23-2.46-2.55-2.53-2.50
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