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E I du Pont de Nemours & Company (NYSE:DD)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

DD' s 10-Year Beneish M-Score Range
Min: -3.14   Max: -1.73
Current: -2.59

-3.14
-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 -3.14. 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 * 0.8968+0.404 * 0.9518+0.892 * 1.0023+0.115 * 1.0092
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9907+4.679 * -0.0094-0.327 * 1.0038
=-2.59

* 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 + 1589 = $12,482 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 $3,582 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)
=0.34788183 / 0.38792648
=0.8968

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) / (3582 / 35880)
=0.09890721 / 0.09983278
=0.9907

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 -2.59 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 1.14810.96490.88761.0581.02031.140.93530.68980.97041.0984
GMI 1.09950.87751.04681.10821.02160.93370.9521.03991.02460.7307
AQI 1.22051.10550.83651.11950.90840.9540.96511.41680.90520.863
SGI 1.00961.01771.01721.01371.08370.85841.19781.18290.9121.0236
DEPI 1.18571.00010.99931.03910.97790.96071.09971.04130.87921.0791
SGAI 1.03881.00820.98341.02941.13241.03010.83920.96080.9381.0046
LVGI 0.80831.13191.02480.96731.12811.03410.97530.97821.02150.9695
TATA -0.0289-0.0653-0.0607-0.071-0.0272-0.0758-0.0422-0.0385-0.03150.035
M-score -2.25-2.87-2.90-2.63-2.61-2.91-2.55-2.57-2.77-2.38

E I du Pont de Nemours & Company Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.87870.89950.9151.00261.091.13431.16491.03680.97661.0036
GMI 0.99211.00141.01410.9550.87870.81040.73830.79710.85390.8968
AQI 0.99720.93830.90520.90810.90670.96580.8630.94930.96190.9518
SGI 1.15121.02520.96710.91920.86990.92850.96520.97541.01381.0023
DEPI 0.84390.82370.87920.92820.9911.09271.07911.07651.02571.0092
SGAI 0.99250.99230.98410.95440.94340.93640.95750.97830.9850.9907
LVGI 0.98280.98991.02150.95290.93170.91220.96950.94560.95381.0038
TATA -0.0275-0.0284-0.03150.02150.03250.04510.035-0.0073-0.0129-0.0094
M-score -2.60-2.72-2.78-2.49-2.43-2.27-2.36-2.60-2.62-2.59
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