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CH Robinson Worldwide Inc (NAS:CHRW)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

CHRW' s 10-Year Beneish M-Score Range
Min: -3.06   Max: 0.58
Current: -2.67

-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 * 0.9631+0.528 * 0.9193+0.404 * 1.1699+0.892 * 1.0424+0.115 * 1.1101
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0709+4.679 * -0.0454-0.327 * 1.0141
=-2.67

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,706 Mil.
Revenue was 3545.088 + 3300.89 + 3357.202 + 3467.362 = $13,671 Mil.
Gross Profit was 584.018 + 525.11 + 501.816 + 527.564 = $2,139 Mil.
Total Current Assets was $1,944 Mil.
Total Assets was $3,404 Mil.
Property, Plant and Equipment(Net PPE) was $191 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $1,336 Mil.
Total Current Liabilities was $1,695 Mil.
Long-Term Debt was $500 Mil.
Net Income was 137.208 + 106.476 + 112.947 + 124.981 = $482 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 150.801 + 100.395 + 208.104 + 176.954 = $636 Mil.
Accounts Receivable was $1,700 Mil.
Revenue was 3502.918 + 3142.585 + 3152.882 + 3316.665 = $13,115 Mil.
Gross Profit was 521.037 + 457.235 + 444.465 + 463.306 = $1,886 Mil.
Total Current Assets was $1,909 Mil.
Total Assets was $3,037 Mil.
Property, Plant and Equipment(Net PPE) was $160 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $1,197 Mil.
Total Current Liabilities was $1,431 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)
=(1706.429 / 13670.542) / (1699.787 / 13115.05)
=0.12482526 / 0.12960583
=0.9631

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)
=(525.11 / 13115.05) / (584.018 / 13670.542)
=0.14380753 / 0.15643184
=0.9193

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 - (1944.339 + 190.849) / 3404.014) / (1 - (1909.201 + 160.268) / 3037.106)
=0.37274406 / 0.31860495
=1.1699

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
=13670.542 / 13115.05
=1.0424

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))
=(58.279 / (58.279 + 160.268)) / (60.342 / (60.342 + 190.849))
=0.26666575 / 0.24022357
=1.1101

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)
=(1336.423 / 13670.542) / (1197.222 / 13115.05)
=0.09775933 / 0.09128612
=1.0709

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 + 1694.818) / 3404.014) / ((500 + 1430.998) / 3037.106)
=0.64477349 / 0.63580198
=1.0141

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
=(481.612 - 0 - 636.254) / 3404.014
=-0.0454

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 -2.67 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 -0.0195-0.05410.0011-0.0524-0.00760.0205-0-0.05340.0276-0.0198
M-score -2.31-2.69-2.32-2.66-2.48-2.14-2.39-2.22-2.46-2.59

CH Robinson Worldwide Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.05240.98521.02210.91441.00331.00110.99341.02640.96970.9631
GMI 1.05681.03861.04611.05021.04611.03480.99360.9660.93530.9193
AQI 1.85341.88781.99170.9960.94080.94480.96060.8531.16851.1699
SGI 1.12151.12651.14731.12261.09311.08091.05531.05631.05641.0424
DEPI 0.91770.85460.7990.77530.86020.90590.95190.96061.10681.1101
SGAI 1.01591.05441.06620.98580.98450.97710.99541.03351.05651.0709
LVGI 1.08051.07491.49381.43711.43921.39560.99541.02271.02321.0141
TATA -0.0062-0.035-0.02710.0279-0.00160.0013-0.0106-0.0198-0.0412-0.0454
M-score -2.02-2.22-2.23-2.46-2.56-2.54-2.51-2.59-2.62-2.67
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