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E I du Pont de Nemours & Company (NYSE:DD)
Beneish M-Score
-2.53 (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 -2.52 suggests that the company is not a manipulator.

DD' s 10-Year Beneish M-Score Range
Min: -3.1   Max: -1.73
Current: -2.53

-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 -2.61.


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 * 0.9766+0.528 * 0.9989+0.404 * 0.9619+0.892 * 1.0138+0.115 * 1.0257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8688+4.679 * -0.0129-0.327 * 0.9538
=-2.52

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $8,896 Mil.
Revenue was 10114 + 10145 + 7836 + 7805 = $35,900 Mil.
Gross Profit was 4115 + 4145 + 2703 + 2640 = $13,603 Mil.
Total Current Assets was $21,329 Mil.
Total Assets was $48,314 Mil.
Property, Plant and Equipment(Net PPE) was $13,035 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,646 Mil.
Selling, General & Admin. Expense(SGA) was $3,575 Mil.
Total Current Liabilities was $11,039 Mil.
Long-Term Debt was $9,292 Mil.
Net Income was 1070 + 1439 + 185 + 285 = $2,979 Mil.
Non Operating Income was -43 + -28 + -30 + -34 = $-135 Mil.
Cash Flow from Operations was 350 + -2421 + 5512 + 298 = $3,739 Mil.
Accounts Receivable was $8,985 Mil.
Revenue was 10003 + 10500 + 7572 + 7336 = $35,411 Mil.
Gross Profit was 3947 + 4307 + 2592 + 2557 = $13,403 Mil.
Total Current Assets was $23,237 Mil.
Total Assets was $51,349 Mil.
Property, Plant and Equipment(Net PPE) was $12,698 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,650 Mil.
Selling, General & Admin. Expense(SGA) was $4,059 Mil.
Total Current Liabilities was $11,890 Mil.
Long-Term Debt was $10,765 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)
=(8896 / 35900) / (8985 / 35411)
=0.24779944 / 0.25373472
=0.9766

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)
=(4145 / 35411) / (4115 / 35900)
=0.37849821 / 0.37891365
=0.9989

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 - (21329 + 13035) / 48314) / (1 - (23237 + 12698) / 51349)
=0.28873618 / 0.30018111
=0.9619

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
=35900 / 35411
=1.0138

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))
=(1650 / (1650 + 12698)) / (1646 / (1646 + 13035))
=0.11499861 / 0.1121177
=1.0257

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)
=(3575 / 35900) / (4059 / 35411)
=0.09958217 / 0.1146254
=0.8688

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)
=((9292 + 11039) / 48314) / ((10765 + 11890) / 51349)
=0.4208097 / 0.44119652
=0.9538

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
=(2979 - -135 - 3739) / 48314
=-0.0129

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 -2.52 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 & Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.14810.96491.06431.07860.83461.141.05940.89720.88261.0835
GMI 0.92860.87571.04891.13450.99790.93370.96791.03850.71121.0369
AQI 1.22051.10840.83421.11950.90840.9540.96511.41680.90280.8653
SGI 1.00961.01771.01721.01371.08370.85841.05751.19111.02581.0236
DEPI 1.18571.00010.99931.03910.97790.96071.09971.04130.87921.0791
SGAI 1.01441.00820.98341.03921.12170.97080.80050.96811.16710.8914
LVGI 0.80831.12841.0280.96731.12811.03410.97530.97821.01910.9718
TATA -0.0236-0.0648-0.0607-0.071-0.0272-0.0805-0.0388-0.0335-0.03980.035
M-score -2.31-2.86-2.74-2.60-2.79-2.92-2.53-2.35-2.99-2.22

E I du Pont de Nemours & Company Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.89260.87640.8530.93680.94890.97431.03961.08351.00640.9766
GMI 0.99660.87770.81130.76780.73030.83170.90540.97051.03370.9989
AQI 1.42870.99720.93830.90280.90810.90670.96580.86530.94930.9619
SGI 1.21771.15411.08110.96640.97120.97321.0131.02361.00491.0138
DEPI 0.98110.84390.82370.87920.92820.9911.09271.07911.07651.0257
SGAI 1.02890.99841.16111.10541.12921.18250.9360.89140.88750.8688
LVGI 0.99460.98280.98991.01910.95290.93170.91220.97180.94560.9538
TATA -0.0234-0.0228-0.0239-0.03980.01320.02460.03730.035-0.0073-0.0129
M-score -2.33-2.64-2.82-2.95-2.69-2.55-2.27-2.25-2.46-2.52
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