Switch to:
E I du Pont de Nemours & Company (NYSE:DD)
Beneish M-Score
-2.19 (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 & Company has a M-score of -2.18 signals that the company is a manipulator.

DD' s 10-Year Beneish M-Score Range
Min: -3.1   Max: -1.73
Current: -2.19

-3.1
-1.73

During the past 13 years, the highest Beneish M-Score of E I du Pont de Nemours & Company was -1.73. The lowest was -3.10. And the median was -2.58.


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 & Company 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 * 1.3161+0.528 * 0.9453+0.404 * 1.0779+0.892 * 0.9973+0.115 * 1.019
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1009+4.679 * -0.0002-0.327 * 0.9384
=-2.18

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $6,005 Mil.
Revenue was 7919 + 7868 + 10114 + 10145 = $36,046 Mil.
Gross Profit was 3096 + 2988 + 4115 + 4145 = $14,344 Mil.
Total Current Assets was $21,748 Mil.
Total Assets was $49,876 Mil.
Property, Plant and Equipment(Net PPE) was $13,386 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,617 Mil.
Selling, General & Admin. Expense(SGA) was $4,027 Mil.
Total Current Liabilities was $12,640 Mil.
Long-Term Debt was $9,271 Mil.
Net Income was 683 + 433 + 1070 + 1439 = $3,625 Mil.
Non Operating Income was 0 + -33 + -43 + 0 = $-76 Mil.
Cash Flow from Operations was 5514 + 269 + 350 + -2421 = $3,712 Mil.
Accounts Receivable was $4,575 Mil.
Revenue was 7836 + 7805 + 10003 + 10500 = $36,144 Mil.
Gross Profit was 2703 + 2639 + 3947 + 4307 = $13,596 Mil.
Total Current Assets was $24,384 Mil.
Total Assets was $51,499 Mil.
Property, Plant and Equipment(Net PPE) was $12,993 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,603 Mil.
Selling, General & Admin. Expense(SGA) was $3,668 Mil.
Total Current Liabilities was $13,367 Mil.
Long-Term Debt was $10,741 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)
=(6005 / 36046) / (4575 / 36144)
=0.16659269 / 0.12657703
=1.3161

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)
=(2988 / 36144) / (3096 / 36046)
=0.37616202 / 0.39793597
=0.9453

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 - (21748 + 13386) / 49876) / (1 - (24384 + 12993) / 51499)
=0.29557302 / 0.27421892
=1.0779

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
=36046 / 36144
=0.9973

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))
=(1603 / (1603 + 12993)) / (1617 / (1617 + 13386))
=0.10982461 / 0.10777844
=1.019

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)
=(4027 / 36046) / (3668 / 36144)
=0.11171836 / 0.10148296
=1.1009

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)
=((9271 + 12640) / 49876) / ((10741 + 13367) / 51499)
=0.43930949 / 0.46812559
=0.9384

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
=(3625 - -76 - 3712) / 49876
=-0.0002

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 & Company has a M-score of -2.18 signals that the company is likely to 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 & Company Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96490.88761.0581.02031.141.05940.6850.86271.09841.3161
GMI 0.87571.04891.13450.99790.93370.96791.03850.71121.03690.9453
AQI 1.10840.83421.11950.90840.9540.96511.41680.90280.86531.0779
SGI 1.01771.01721.01371.08370.85841.05751.19111.02581.02360.9973
DEPI 1.00010.99931.03910.97790.96071.09971.04130.87921.07911.019
SGAI 1.00820.98341.03921.12170.97080.80050.96811.16710.89141.5968
LVGI 1.12841.0280.96731.12811.03410.97530.97821.01910.97180.9384
TATA -0.0648-0.0607-0.071-0.0272-0.0805-0.0388-0.0335-0.03980.035-0.0017
M-score -2.86-2.90-2.62-2.62-2.92-2.53-2.55-3.01-2.20-2.28

E I du Pont de Nemours & Company Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.8530.91570.94890.97431.03961.09841.00640.97661.00361.3161
GMI 0.81130.76780.73030.83170.90540.97051.03370.9990.96880.9453
AQI 0.93830.90280.90810.90670.96580.86530.94930.96190.95181.0779
SGI 1.08110.96640.97120.97321.0131.02361.00491.01381.00230.9973
DEPI 0.82370.87920.92820.9911.09271.07911.07651.02571.00921.019
SGAI 1.16111.10541.12921.18250.9360.89140.88750.86880.96571.1009
LVGI 0.98991.01910.95290.93170.91220.97180.94560.95381.00380.9384
TATA -0.0239-0.03980.01320.02460.03730.035-0.0079-0.0135-0.01-0.0002
M-score -2.82-2.97-2.69-2.55-2.27-2.24-2.46-2.53-2.55-2.18
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK