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E I du Pont de Nemours & Co (NYSE:DD)
Beneish M-Score
-2.75 (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.

E I du Pont de Nemours & Co has a M-score of -2.75 suggests that the company is not a manipulator.

DD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Max: -1.73
Current: -2.75

-3.05
-1.73

During the past 13 years, the highest Beneish M-Score of E I du Pont de Nemours & Co was -1.73. The lowest was -3.05. And the median was -2.63.


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 E I du Pont de Nemours & Co 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 * 0.9111+0.528 * 1.0191+0.404 * 1.1764+0.892 * 0.8753+0.115 * 0.8087
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0478+4.679 * -0.0333-0.327 * 0.9164
=-2.75

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $6,656 Mil.
Revenue was 4971 + 8878 + 9370 + 0 = $23,219 Mil.
Gross Profit was 1887 + 3598 + 3817 + 0 = $9,302 Mil.
Total Current Assets was $17,046 Mil.
Total Assets was $40,302 Mil.
Property, Plant and Equipment(Net PPE) was $9,769 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,542 Mil.
Selling, General & Admin. Expense(SGA) was $3,729 Mil.
Total Current Liabilities was $8,354 Mil.
Long-Term Debt was $8,155 Mil.
Net Income was 235 + 940 + 1031 + 0 = $2,206 Mil.
Non Operating Income was -33 + -61 + -25 + 0 = $-119 Mil.
Cash Flow from Operations was 200 + 78 + -2123 + 5514 = $3,669 Mil.
Accounts Receivable was $8,347 Mil.
Revenue was 6269 + 10114 + 10145 + 0 = $26,528 Mil.
Gross Profit was 2571 + 4115 + 4145 + 0 = $10,831 Mil.
Total Current Assets was $21,168 Mil.
Total Assets was $47,911 Mil.
Property, Plant and Equipment(Net PPE) was $13,114 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,625 Mil.
Selling, General & Admin. Expense(SGA) was $4,066 Mil.
Total Current Liabilities was $12,137 Mil.
Long-Term Debt was $9,279 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)
=(6656 / 23219) / (8347 / 26528)
=0.28666179 / 0.31464867
=0.9111

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)
=(3598 / 26528) / (1887 / 23219)
=0.40828559 / 0.40062018
=1.0191

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 - (17046 + 9769) / 40302) / (1 - (21168 + 13114) / 47911)
=0.3346484 / 0.28446495
=1.1764

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
=23219 / 26528
=0.8753

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))
=(1625 / (1625 + 13114)) / (1542 / (1542 + 9769))
=0.11025171 / 0.13632747
=0.8087

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)
=(3729 / 23219) / (4066 / 26528)
=0.16060123 / 0.15327201
=1.0478

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)
=((8155 + 8354) / 40302) / ((9279 + 12137) / 47911)
=0.40963228 / 0.44699547
=0.9164

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
=(2206 - -119 - 3669) / 40302
=-0.0333

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.

E I du Pont de Nemours & Co has a M-score of -2.75 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.

E I du Pont de Nemours & Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.88761.0581.02031.140.77530.9360.86271.09840.96261.5164
GMI 1.04891.13450.99790.93370.96790.75360.97041.04720.94540.9981
AQI 0.83421.11950.90840.9540.96511.41680.90280.86531.07791.1199
SGI 1.01721.01371.08370.85841.05751.19111.02581.02360.99730.6972
DEPI 0.99931.03910.97790.96071.09971.04130.87921.07911.0190.8271
SGAI 0.98341.03920.97631.11540.80050.96951.70630.96810.91871.2387
LVGI 1.0280.96731.12811.03410.97530.97821.01910.97180.93840.995
TATA -0.0607-0.071-0.0162-0.0727-0.0388-0.0306-0.03980.0350.0008-0.0061
M-score -2.90-2.62-2.54-2.91-2.79-2.46-2.97-2.21-2.47-2.32

E I du Pont de Nemours & Co Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.0321.10171.01460.98221.07341.02441.03291.0690.91110.9834
GMI 0.96490.96491.04290.99990.94250.94250.94130.95351.01911.0403
AQI 0.96580.86530.94930.96190.95181.07791.03671.00791.17641.1199
SGI 1.02051.02050.99681.00810.93710.93710.92130.87360.87531.075
DEPI 1.09271.07911.07651.02571.00921.0190.98081.02220.80870.8271
SGAI 0.87030.87031.0291.16951.58351.58351.341.19351.04781.0991
LVGI 0.91220.97180.94560.95381.00380.93840.99011.02710.91640.995
TATA 0.03510.0309-0.0118-0.0128-0.0093-0.0089-0.025-0.0253-0.03330.0093
M-score -2.24-2.26-2.50-2.58-2.66-2.63-2.71-2.71-2.75-2.35
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