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E.I. du Pont de Nemours & Co (NYSE:DD)
Beneish M-Score
-2.48 (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 -2.48 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: -2.48

-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 -2.56.


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 * 1.1269+0.528 * 1.0221+0.404 * 1.022+0.892 * 0.943+0.115 * 1.1629
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0217+4.679 * -0.0222-0.327 * 0.9898
=-2.48

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $7,073 Mil.
Revenue was 4901 + 7112 + 7777 + 5444 = $25,234 Mil.
Gross Profit was 1811 + 3122 + 3535 + 2035 = $10,503 Mil.
Total Current Assets was $18,298 Mil.
Total Assets was $42,481 Mil.
Property, Plant and Equipment(Net PPE) was $9,654 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,282 Mil.
Selling, General & Admin. Expense(SGA) was $4,430 Mil.
Total Current Liabilities was $9,110 Mil.
Long-Term Debt was $8,114 Mil.
Net Income was 2 + 1020 + 1226 + -253 = $1,995 Mil.
Non Operating Income was -203 + 63 + -16 + 9 = $-147 Mil.
Cash Flow from Operations was 426 + 341 + -1844 + 4161 = $3,084 Mil.
Accounts Receivable was $6,656 Mil.
Revenue was 4971 + 7376 + 8036 + 6377 = $26,760 Mil.
Gross Profit was 1887 + 3273 + 3520 + 2704 = $11,384 Mil.
Total Current Assets was $17,046 Mil.
Total Assets was $40,302 Mil.
Property, Plant and Equipment(Net PPE) was $9,769 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,542 Mil.
Selling, General & Admin. Expense(SGA) was $4,598 Mil.
Total Current Liabilities was $8,354 Mil.
Long-Term Debt was $8,155 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)
=(7073 / 25234) / (6656 / 26760)
=0.28029643 / 0.24872945
=1.1269

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)
=(11384 / 26760) / (10503 / 25234)
=0.42541106 / 0.41622414
=1.0221

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 - (18298 + 9654) / 42481) / (1 - (17046 + 9769) / 40302)
=0.34201172 / 0.3346484
=1.022

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
=25234 / 26760
=0.943

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))
=(1542 / (1542 + 9769)) / (1282 / (1282 + 9654))
=0.13632747 / 0.11722751
=1.1629

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)
=(4430 / 25234) / (4598 / 26760)
=0.17555679 / 0.17182362
=1.0217

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)
=((8114 + 9110) / 42481) / ((8155 + 8354) / 40302)
=0.40545185 / 0.40963228
=0.9898

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
=(1995 - -147 - 3084) / 42481
=-0.0222

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 -2.48 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 local exchange's currency.

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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.88761.0581.02031.140.77530.9360.86271.35180.7981.0699
GMI 1.04891.13450.99790.93370.96790.75360.97040.98660.93621.028
AQI 0.83421.11950.90840.9540.96511.41680.90280.86531.04011.1607
SGI 1.01721.01371.08370.85841.05751.19111.02580.83171.01070.8701
DEPI 0.99931.03910.97790.96071.09971.04130.87921.07910.78961.0674
SGAI 0.98341.03920.97631.11540.80050.96951.70631.09120.90591.0844
LVGI 1.0280.96731.12811.03410.97530.97821.01910.97180.97470.958
TATA -0.0116-0.071-0.0162-0.0727-0.0365-0.0306-0.03980.0350.0008-0.0057
M-score -2.67-2.62-2.54-2.91-2.78-2.46-2.97-2.20-2.67-2.47

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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.20381.30820.71990.89660.96940.82211.1861.08891.02181.1269
GMI 0.94920.8980.97070.95080.93660.99390.99150.99891.02881.0221
AQI 0.96190.95181.04011.03671.00791.17641.16071.12871.1831.022
SGI 0.82250.76891.12041.06140.96340.970.78490.83020.90180.943
DEPI 1.02571.00920.78960.98081.02220.80871.06740.89630.9261.1629
SGAI 1.28971.5650.85610.79790.77770.71091.14751.111.05021.0217
LVGI 0.95381.00380.97470.99011.02710.91640.9580.96790.9030.9898
TATA -0.0075-0.00390.0012-0.014-0.016-0.0223-0.0066-0.0087-0.0154-0.0222
M-score -2.56-2.59-2.62-2.56-2.61-2.65-2.48-2.56-2.52-2.48
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