DHR has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Danaher Corp was -2.13. The lowest was -2.87. And the median was -2.50.
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 Danaher Corp 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 * 1.0418||+||0.528 * 0.9788||+||0.404 * 1.1612||+||0.892 * 1.0718||+||0.115 * 1.1043|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0624||+||4.679 * -0.0119||-||0.327 * 1.9371|
|This Year (Sep15) TTM:||Last Year (Sep14) TTM:|
|Accounts Receivable was $3,906 Mil.|
Revenue was 5023.4 + 5127.1 + 4873.3 + 5984 = $21,008 Mil.
Gross Profit was 2637 + 2760.2 + 2600 + 3212.3 = $11,210 Mil.
Total Current Assets was $8,932 Mil.
Total Assets was $49,708 Mil.
Property, Plant and Equipment(Net PPE) was $2,792 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,010 Mil.
Selling, General & Admin. Expense(SGA) was $6,302 Mil.
Total Current Liabilities was $8,626 Mil.
Long-Term Debt was $11,523 Mil.
Net Income was 1403.3 + 695.6 + 569.8 + 661.7 = $3,330 Mil.
Non Operating Income was 12.4 + 0 + 0 + 99.1 = $112 Mil.
Cash Flow from Operations was 952.6 + 1094 + 523.6 + 1239.4 = $3,810 Mil.
|Accounts Receivable was $3,498 Mil.
Revenue was 4707.1 + 4963.6 + 4662.7 + 5266.7 = $19,600 Mil.
Gross Profit was 2452.3 + 2620.2 + 2452.9 + 2711.7 = $10,237 Mil.
Total Current Assets was $9,990 Mil.
Total Assets was $35,536 Mil.
Property, Plant and Equipment(Net PPE) was $2,162 Mil.
Depreciation, Depletion and Amortization(DDA) was $898 Mil.
Selling, General & Admin. Expense(SGA) was $5,535 Mil.
Total Current Liabilities was $4,471 Mil.
Long-Term Debt was $2,965 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(3906.1 / 21007.8)||/||(3498.1 / 19600.1)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(2760.2 / 19600.1)||/||(2637 / 21007.8)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (8931.8 + 2791.6) / 49707.9)||/||(1 - (9989.5 + 2161.6) / 35535.9)|
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.
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))|
|=||(897.8 / (897.8 + 2161.6))||/||(1010.3 / (1010.3 + 2791.6))|
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)|
|=||(6302.1 / 21007.8)||/||(5534.6 / 19600.1)|
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)|
|=||((11522.7 + 8625.6) / 49707.9)||/||((2964.7 + 4471.1) / 35535.9)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(3330.4 - 111.5||-||3809.6)||/||49707.9|
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.
Danaher Corp has a M-score of -2.68 suggests that the company will not be a manipulator.
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
Danaher Corp Annual Data
Danaher Corp Quarterly Data