Switch to:
E.I. du Pont de Nemours & Co (NYSE:DD)
Beneish M-Score
-2.54 (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 -2.54 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: -2.54

-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 -2.57.


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 * 1.0285+0.528 * 1.0265+0.404 * 1.1287+0.892 * 0.879+0.115 * 0.8963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0709+4.679 * -0.0073-0.327 * 0.9679
=-2.54

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $6,917 Mil.
Revenue was 7777 + 5444 + 4971 + 8878 = $27,070 Mil.
Gross Profit was 3535 + 2035 + 1887 + 3598 = $11,055 Mil.
Total Current Assets was $17,865 Mil.
Total Assets was $41,801 Mil.
Property, Plant and Equipment(Net PPE) was $9,649 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,380 Mil.
Selling, General & Admin. Expense(SGA) was $4,620 Mil.
Total Current Liabilities was $8,955 Mil.
Long-Term Debt was $8,126 Mil.
Net Income was 1226 + -253 + 235 + 940 = $2,148 Mil.
Non Operating Income was -16 + 9 + -33 + -101 = $-141 Mil.
Cash Flow from Operations was -1844 + 4161 + 200 + 78 = $2,595 Mil.
Accounts Receivable was $7,651 Mil.
Revenue was 8036 + 6377 + 6269 + 10114 = $30,796 Mil.
Gross Profit was 3520 + 2704 + 2571 + 4115 = $12,910 Mil.
Total Current Assets was $19,319 Mil.
Total Assets was $46,175 Mil.
Property, Plant and Equipment(Net PPE) was $12,873 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,626 Mil.
Selling, General & Admin. Expense(SGA) was $4,908 Mil.
Total Current Liabilities was $10,732 Mil.
Long-Term Debt was $8,763 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)
=(6917 / 27070) / (7651 / 30796)
=0.25552272 / 0.24844136
=1.0285

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)
=(2035 / 30796) / (3535 / 27070)
=0.41921029 / 0.40838567
=1.0265

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 - (17865 + 9649) / 41801) / (1 - (19319 + 12873) / 46175)
=0.34178608 / 0.3028262
=1.1287

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
=27070 / 30796
=0.879

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))
=(1626 / (1626 + 12873)) / (1380 / (1380 + 9649))
=0.11214567 / 0.12512467
=0.8963

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)
=(4620 / 27070) / (4908 / 30796)
=0.17066864 / 0.15937135
=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)
=((8126 + 8955) / 41801) / ((8763 + 10732) / 46175)
=0.40862659 / 0.42219816
=0.9679

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
=(2148 - -141 - 2595) / 41801
=-0.0073

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 -2.54 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 0.88761.0581.06391.09320.68450.94260.97041.09840.80881.2992
GMI 1.04681.10821.25960.75720.9521.03991.02460.73070.94530.9591
AQI 0.83421.11950.90840.9540.96511.41680.90280.86531.04011.1607
SGI 1.01721.01371.03920.89511.19781.18290.9121.02360.99730.7165
DEPI 0.99931.03910.97790.96071.09971.04130.87921.07910.78961.0674
SGAI 0.98341.02941.02781.13490.83920.96080.9381.00461.46091.2053
LVGI 1.0280.96731.12811.03410.97530.97821.01910.97180.97470.958
TATA -0.0116-0.071-0.0633-0.0758-0.0387-0.0313-0.02930.0350.0008-0.0057
M-score -2.67-2.63-2.63-3.03-2.77-2.31-2.76-2.38-2.76-2.45

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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.35181.24141.20381.30820.71990.89660.92020.77841.12081.0285
GMI 0.92410.98320.94920.8980.97070.95080.96091.02051.01821.0265
AQI 0.86530.94930.96190.95181.04011.03671.00791.17641.16071.1287
SGI 0.83170.81460.82250.76891.12041.06141.01491.02440.83050.879
DEPI 1.07911.07651.02571.00920.78960.98081.02220.80871.06740.8963
SGAI 1.09121.20281.28971.5650.85610.79790.75340.68731.10721.0709
LVGI 0.97180.94560.95381.00380.97470.99011.02710.91640.9580.9679
TATA 0.035-0.0073-0.0075-0.00390.0012-0.014-0.0148-0.0208-0.0052-0.0073
M-score -2.23-2.50-2.56-2.59-2.62-2.56-2.59-2.62-2.47-2.54
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)

GuruFocus Premium Plus Membership

FEEDBACK