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Dell Inc (NAS:DELL)
Beneish M-Score
0.00 (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.

Dell Inc has a M-score of -2.75 suggests that the company is not a manipulator.

DELL' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Dell Inc was 0.00. The lowest was 0.00. And the median was 0.00.


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 Dell Inc 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 * 1.035+0.528 * 1.0741+0.404 * 1.0916+0.892 * 0.939+0.115 * 0.9103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0793+4.679 * -0.0666-0.327 * 0.9717
=-2.75

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

This Year (Jul13) TTM:Last Year (Jul12) TTM:
Accounts Receivable was $9,722 Mil.
Revenue was 14514 + 14074 + 14314 + 13721 = $56,623 Mil.
Gross Profit was 2689 + 2747 + 3109 + 2872 = $11,417 Mil.
Total Current Assets was $26,866 Mil.
Total Assets was $45,871 Mil.
Property, Plant and Equipment(Net PPE) was $2,212 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,265 Mil.
Selling, General & Admin. Expense(SGA) was $8,422 Mil.
Total Current Liabilities was $22,756 Mil.
Long-Term Debt was $4,075 Mil.
Net Income was 204 + 130 + 530 + 475 = $1,339 Mil.
Non Operating Income was -15 + -24 + 4 + 6 = $-29 Mil.
Cash Flow from Operations was 1678 + -39 + 1441 + 1343 = $4,423 Mil.
Accounts Receivable was $10,003 Mil.
Revenue was 14483 + 14422 + 16031 + 15365 = $60,301 Mil.
Gross Profit was 3138 + 3067 + 3385 + 3469 = $13,059 Mil.
Total Current Assets was $27,250 Mil.
Total Assets was $44,097 Mil.
Property, Plant and Equipment(Net PPE) was $2,058 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,019 Mil.
Selling, General & Admin. Expense(SGA) was $8,310 Mil.
Total Current Liabilities was $20,712 Mil.
Long-Term Debt was $5,832 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)
=(9722 / 56623) / (10003 / 60301)
=0.17169701 / 0.16588448
=1.035

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)
=(2747 / 60301) / (2689 / 56623)
=0.21656357 / 0.20163185
=1.0741

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 - (26866 + 2212) / 45871) / (1 - (27250 + 2058) / 44097)
=0.36609187 / 0.33537429
=1.0916

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
=56623 / 60301
=0.939

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))
=(1019 / (1019 + 2058)) / (1265 / (1265 + 2212))
=0.33116672 / 0.36381938
=0.9103

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)
=(8422 / 56623) / (8310 / 60301)
=0.14873815 / 0.13780866
=1.0793

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)
=((4075 + 22756) / 45871) / ((5832 + 20712) / 44097)
=0.58492294 / 0.60194571
=0.9717

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
=(1339 - -29 - 4423) / 45871
=-0.0666

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.

Dell Inc has a M-score of -2.75 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.

Dell Inc Annual Data

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
DSRI 1.20081.02451.08681.09711.17450.8381.53141.02070.95821.0944
GMI 0.98410.99261.03551.06980.86811.06461.02440.94460.83291.0397
AQI 1.01840.53750.74770.86041.41850.84481.39740.921.47331.2609
SGI 1.17061.18521.13571.02931.06470.99950.86581.16241.00940.9173
DEPI 1.27050.90260.99181.00930.88240.73410.89870.84651.08490.8743
SGAI 0.99261.03611.02191.14411.19030.94271.05140.97171.15651.0361
LVGI 0.96761.06821.14550.99140.95690.92271.05160.95960.9990.9464
TATA -0.0631-0.1202-0.0471-0.0522-0.0340.0135-0.0722-0.0363-0.0459-0.0191
M-score -2.40-3.09-2.63-2.65-2.35-2.59-2.31-2.55-2.64-2.43

Dell Inc Quarterly Data

Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13
DSRI 0.9290.97110.98540.95821.0121.01070.98121.09441.07971.035
GMI 0.86780.78510.78390.83290.91330.99071.04591.03971.04311.0741
AQI 1.09521.1681.38951.47331.27951.4121.39811.26091.25151.0916
SGI 1.11191.06111.0171.00940.99740.97640.95020.91730.92060.939
DEPI 0.94951.0721.13181.08491.02340.92040.90480.87430.8630.9103
SGAI 1.00911.10921.14631.15651.13781.0651.04391.03611.05991.0793
LVGI 0.95070.95540.97060.9990.98190.94080.94150.94640.94030.9717
TATA -0.0265-0.0424-0.0362-0.0458-0.0405-0.0035-0.024-0.0191-0.0331-0.0666
M-score -2.59-2.69-2.60-2.64-2.61-2.35-2.47-2.43-2.51-2.75
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