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E.I. du Pont de Nemours & Co (NYSE:DD)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

DD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56   Max: -1.73
Current: -2.49

-3.56
-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 -3.56. 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 & 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 * 1.2395+0.528 * 0.9486+0.404 * 1.183+0.892 * 0.7435+0.115 * 0.926
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9748+4.679 * -0.0154-0.327 * 0.903
=-2.49

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $7,656 Mil.
Revenue was 7112 + 7777 + 5444 + 4971 = $25,304 Mil.
Gross Profit was 3122 + 3535 + 2035 + 1887 = $10,579 Mil.
Total Current Assets was $18,091 Mil.
Total Assets was $42,266 Mil.
Property, Plant and Equipment(Net PPE) was $9,624 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,293 Mil.
Selling, General & Admin. Expense(SGA) was $4,460 Mil.
Total Current Liabilities was $8,378 Mil.
Long-Term Debt was $8,119 Mil.
Net Income was 1020 + 1226 + -253 + 235 = $2,228 Mil.
Non Operating Income was 63 + -16 + 9 + -33 = $23 Mil.
Cash Flow from Operations was 341 + -1844 + 4161 + 200 = $2,858 Mil.
Accounts Receivable was $8,308 Mil.
Revenue was 8878 + 9370 + 7919 + 7868 = $34,035 Mil.
Gross Profit was 3598 + 3817 + 3095 + 2988 = $13,498 Mil.
Total Current Assets was $21,045 Mil.
Total Assets was $48,106 Mil.
Property, Plant and Equipment(Net PPE) was $13,061 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,609 Mil.
Selling, General & Admin. Expense(SGA) was $6,154 Mil.
Total Current Liabilities was $8,705 Mil.
Long-Term Debt was $12,088 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)
=(7656 / 25304) / (8308 / 34035)
=0.30256086 / 0.24410166
=1.2395

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)
=(13498 / 34035) / (10579 / 25304)
=0.39659174 / 0.41807619
=0.9486

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 - (18091 + 9624) / 42266) / (1 - (21045 + 13061) / 48106)
=0.34427199 / 0.29102399
=1.183

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
=25304 / 34035
=0.7435

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))
=(1609 / (1609 + 13061)) / (1293 / (1293 + 9624))
=0.10967962 / 0.11843913
=0.926

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)
=(4460 / 25304) / (6154 / 34035)
=0.17625672 / 0.18081387
=0.9748

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)
=((8119 + 8378) / 42266) / ((12088 + 8705) / 48106)
=0.39031373 / 0.43223299
=0.903

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
=(2228 - 23 - 2858) / 42266
=-0.0154

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 -2.49 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 0.88761.0581.02031.140.93530.68980.97041.09840.96261.0916
GMI 1.04891.13450.99790.93370.9521.03991.02460.73070.94530.9591
AQI 0.83421.11950.90840.9540.96511.41680.90520.8631.07791.1199
SGI 1.01721.01371.08370.85841.19781.18290.9121.02360.99730.7165
DEPI 0.99931.03910.97790.96071.09971.04130.87921.07911.0190.8271
SGAI 0.98341.03920.97631.18340.83920.96080.9381.00461.46091.2053
LVGI 1.0280.96731.12811.03410.97530.97821.02150.96950.93840.995
TATA -0.0116-0.071-0.0162-0.0758-0.0387-0.0313-0.02930.0350.0008-0.0057
M-score -2.67-2.62-2.54-2.93-2.54-2.54-2.76-2.38-2.57-2.70

E.I. du Pont de Nemours & Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.03680.97661.00360.96260.96560.98510.9210.98361.1781.2395
GMI 0.73090.78580.83120.88190.94470.95540.97441.0060.9730.9486
AQI 0.94930.96190.95181.07791.03671.00791.17641.11991.12871.183
SGI 0.97541.01381.00230.99730.98550.94810.86580.79520.76750.7435
DEPI 1.07651.02571.00921.0190.98081.02220.80870.82710.89630.926
SGAI 0.97830.9850.99071.46091.61081.81572.09241.13051.05040.9748
LVGI 0.94560.95381.00380.93840.99011.02710.91640.9950.96790.903
TATA -0.0073-0.0129-0.00940.0008-0.0144-0.0097-0.0148-0.0052-0.0073-0.0154
M-score -2.63-2.66-2.63-2.60-2.71-2.75-2.87-2.69-2.53-2.49
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