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CH Robinson Worldwide Inc (NAS:CHRW)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

CHRW' s 10-Year Beneish M-Score Range
Min: -2.68   Max: 0.58
Current: -2.46

-2.68
0.58

During the past 13 years, the highest Beneish M-Score of CH Robinson Worldwide Inc was 0.58. The lowest was -2.68. And the median was -2.40.


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 * 0.9144+0.528 * 1.0502+0.404 * 0.996+0.892 * 1.1226+0.115 * 0.7753
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9858+4.679 * 0.0279-0.327 * 1.4371
=-2.46

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,450 Mil.
Revenue was 3152.882 + 3316.665 + 3288.262 + 2994.267 = $12,752 Mil.
Gross Profit was 444.465 + 463.306 + 472.602 + 455.722 = $1,836 Mil.
Total Current Assets was $1,664 Mil.
Total Assets was $2,803 Mil.
Property, Plant and Equipment(Net PPE) was $161 Mil.
Depreciation, Depletion and Amortization(DDA) was $57 Mil.
Selling, General & Admin. Expense(SGA) was $1,153 Mil.
Total Current Liabilities was $1,270 Mil.
Long-Term Debt was $500 Mil.
Net Income was 92.952 + 107.737 + 111.872 + 103.343 = $416 Mil.
Non Operating Income was -9.289 + 0 + -0.589 + -0.06 = $-10 Mil.
Cash Flow from Operations was 164.848 + 124.658 + 116.321 + -58.05 = $348 Mil.
Accounts Receivable was $1,412 Mil.
Revenue was 2970.876 + 2880.409 + 2955.714 + 2552.114 = $11,359 Mil.
Gross Profit was 444.632 + 432.67 + 425.523 + 414.746 = $1,718 Mil.
Total Current Assets was $1,672 Mil.
Total Assets was $2,804 Mil.
Property, Plant and Equipment(Net PPE) was $150 Mil.
Depreciation, Depletion and Amortization(DDA) was $38 Mil.
Selling, General & Admin. Expense(SGA) was $1,042 Mil.
Total Current Liabilities was $1,232 Mil.
Long-Term Debt was $0 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)
=(1449.581 / 12752.076) / (1412.136 / 11359.113)
=0.11367412 / 0.12431745
=0.9144

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)
=(463.306 / 11359.113) / (444.465 / 12752.076)
=0.15120644 / 0.14398401
=1.0502

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 - (1664.485 + 160.703) / 2802.818) / (1 - (1672.29 + 149.851) / 2804.225)
=0.34880253 / 0.35021584
=0.996

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
=12752.076 / 11359.113
=1.1226

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))
=(38.09 / (38.09 + 149.851)) / (56.882 / (56.882 + 160.703))
=0.20266999 / 0.26142427
=0.7753

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)
=(1153.445 / 12752.076) / (1042.251 / 11359.113)
=0.09045155 / 0.09175461
=0.9858

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 + 1269.981) / 2802.818) / ((0 + 1232.217) / 2804.225)
=0.63150051 / 0.43941445
=1.4371

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
=(415.904 - -9.938 - 347.777) / 2802.818
=0.0279

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 -2.46 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.96171.03020.96280.9840.9931.08021.05240.98521.02210.9144
GMI 0.98731.00211.01291.04051.04991.04461.05681.03861.04611.0502
AQI 0.930.93360.98940.97280.91151.87351.85341.88781.99170.996
SGI 1.12681.11451.10011.0971.08551.09891.12151.12651.14731.1226
DEPI 0.97651.0020.98121.00221.03161.00640.91770.85460.7990.7753
SGAI 1.01470.99790.98040.95420.94691.0091.01591.05441.06620.9858
LVGI 1.0331.06051.00541.04481.01631.07171.08051.07491.49381.4371
TATA -0.0351-0-0.0071-0.00830.0183-0.0537-0.0065-0.0353-0.02740.0279
M-score -2.62-2.39-2.46-2.44-2.33-2.22-2.02-2.22-2.23-2.46
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