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E I du Pont de Nemours & Company (NYSE:DD)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

DD' s 10-Year Beneish M-Score Range
Min: -3.1   Max: -1.73
Current: -2.55

-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 -2.60.


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 * 1.0036+0.528 * 0.9688+0.404 * 0.9518+0.892 * 1.0023+0.115 * 1.0092
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9657+4.679 * -0.0094-0.327 * 1.0038
=-2.55

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $8,347 Mil.
Revenue was 7868 + 10114 + 10145 + 7836 = $35,963 Mil.
Gross Profit was 2988 + 4115 + 4145 + 2703 = $13,951 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 $3,557 Mil.
Total Current Liabilities was $12,137 Mil.
Long-Term Debt was $9,279 Mil.
Net Income was 433 + 1070 + 1439 + 185 = $3,127 Mil.
Non Operating Income was -33 + -43 + -28 + -30 = $-134 Mil.
Cash Flow from Operations was 269 + 350 + -2421 + 5512 = $3,710 Mil.
Accounts Receivable was $8,298 Mil.
Revenue was 7805 + 10003 + 10500 + 7572 = $35,880 Mil.
Gross Profit was 2639 + 3947 + 4307 + 2592 = $13,485 Mil.
Total Current Assets was $23,543 Mil.
Total Assets was $51,990 Mil.
Property, Plant and Equipment(Net PPE) was $12,908 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,616 Mil.
Selling, General & Admin. Expense(SGA) was $3,675 Mil.
Total Current Liabilities was $12,396 Mil.
Long-Term Debt was $10,755 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)
=(8347 / 35963) / (8298 / 35880)
=0.23209966 / 0.2312709
=1.0036

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)
=(4115 / 35880) / (2988 / 35963)
=0.37583612 / 0.38792648
=0.9688

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 - (21168 + 13114) / 47911) / (1 - (23543 + 12908) / 51990)
=0.28446495 / 0.2988844
=0.9518

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
=35963 / 35880
=1.0023

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))
=(1616 / (1616 + 12908)) / (1625 / (1625 + 13114))
=0.11126411 / 0.11025171
=1.0092

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)
=(3557 / 35963) / (3675 / 35880)
=0.09890721 / 0.10242475
=0.9657

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)
=((9279 + 12137) / 47911) / ((10755 + 12396) / 51990)
=0.44699547 / 0.44529717
=1.0038

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
=(3127 - -134 - 3710) / 47911
=-0.0094

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 -2.55 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 1.14810.96490.88761.0581.02031.141.05940.6850.86271.0984
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 -2.31-2.86-2.90-2.62-2.62-2.92-2.53-2.55-3.01-2.20

E I du Pont de Nemours & Company Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.87640.8530.91570.94890.97431.03961.09841.00640.97661.0036
GMI 0.87770.81130.76780.73030.83170.90540.97051.03370.9990.9688
AQI 0.99720.93830.90280.90810.90670.96580.86530.94930.96190.9518
SGI 1.15411.08110.96640.97120.97321.0131.02361.00491.01381.0023
DEPI 0.84390.82370.87920.92820.9911.09271.07911.07651.02571.0092
SGAI 0.99841.16111.10541.12921.18250.9360.89140.88750.86880.9657
LVGI 0.98280.98991.01910.95290.93170.91220.97180.94560.95381.0038
TATA -0.0228-0.0239-0.03980.01320.02460.03730.035-0.0073-0.0129-0.0094
M-score -2.64-2.82-2.97-2.69-2.55-2.27-2.24-2.46-2.52-2.55
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