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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.64 (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.

Dun & Bradstreet Corp has a M-score of -2.64 suggests that the company is not a manipulator.

DNB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Max: -1.86
Current: -2.64

-3.02
-1.86

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -1.86. The lowest was -3.02. And the median was -2.68.


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 Dun & Bradstreet 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 * 1.0316+0.528 * 0.9652+0.404 * 0.9493+0.892 * 1.0576+0.115 * 1.0375
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1358+4.679 * -0.0418-0.327 * 0.9626
=-2.64

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $411 Mil.
Revenue was 398.8 + 375 + 499.3 + 406.2 = $1,679 Mil.
Gross Profit was 265.8 + 242.6 + 354.4 + 273.8 = $1,137 Mil.
Total Current Assets was $854 Mil.
Total Assets was $2,163 Mil.
Property, Plant and Equipment(Net PPE) was $34 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General & Admin. Expense(SGA) was $719 Mil.
Total Current Liabilities was $939 Mil.
Long-Term Debt was $1,716 Mil.
Net Income was 18.8 + 30 + 76.7 + 59 = $185 Mil.
Non Operating Income was -0.5 + 0.8 + -36.1 + 4.3 = $-32 Mil.
Cash Flow from Operations was 50.4 + 130.5 + 53.3 + 72.2 = $306 Mil.
Accounts Receivable was $377 Mil.
Revenue was 375.4 + 356.2 + 465.4 + 390.9 = $1,588 Mil.
Gross Profit was 239 + 225.2 + 322.6 + 250.5 = $1,037 Mil.
Total Current Assets was $769 Mil.
Total Assets was $2,093 Mil.
Property, Plant and Equipment(Net PPE) was $24 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General & Admin. Expense(SGA) was $599 Mil.
Total Current Liabilities was $1,182 Mil.
Long-Term Debt was $1,486 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)
=(411.1 / 1679.3) / (376.8 / 1587.9)
=0.24480438 / 0.23729454
=1.0316

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)
=(1037.3 / 1587.9) / (1136.6 / 1679.3)
=0.65325272 / 0.67682963
=0.9652

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 - (854 + 34.3) / 2162.9) / (1 - (769.3 + 24.3) / 2092.7)
=0.5893014 / 0.62077699
=0.9493

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
=1679.3 / 1587.9
=1.0576

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))
=(52.2 / (52.2 + 24.3)) / (65.9 / (65.9 + 34.3))
=0.68235294 / 0.65768463
=1.0375

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)
=(719 / 1679.3) / (598.6 / 1587.9)
=0.42815459 / 0.37697588
=1.1358

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)
=((1715.6 + 939) / 2162.9) / ((1486.1 + 1182) / 2092.7)
=1.22733367 / 1.2749558
=0.9626

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
=(184.5 - -31.5 - 306.4) / 2162.9
=-0.0418

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.

Dun & Bradstreet Corp has a M-score of -2.64 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.

Dun & Bradstreet Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02871.02810.96011.02841.09340.95951.07161.07580.95411.0073
GMI 1.0130.96521.01291.02571.05411.00180.971.0350.99710.9973
AQI 0.97311.09860.98351.01391.16630.97610.9920.90010.95481.0897
SGI 1.06081.04431.07950.97720.99381.04880.94570.93711.01671.0332
DEPI 1.31850.82430.86671.06680.92570.87850.97121.09030.85711.0312
SGAI 0.97131.03880.94640.95620.98410.97850.98970.94561.06091.1172
LVGI 1.45731.06011.15980.91060.96940.96111.1221.15141.00910.9613
TATA -0.0468-0.0708-0.0826-0.0348-0.0469-0.0159-0.0237-0.03940.0042-0.0734
M-score -2.73-2.77-2.89-2.57-2.52-2.55-2.63-2.70-2.54-2.76

Dun & Bradstreet Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.11681.15981.13080.94121.0010.93440.90271.02110.91111.0316
GMI 1.04741.04521.05350.99561.00461.01350.98560.99870.98370.9652
AQI 0.87330.87560.86820.95480.99871.11321.15061.08971.07910.9493
SGI 0.95010.93750.92641.03071.01361.03051.05431.01921.04771.0576
DEPI 1.10411.16691.15420.85710.92130.82410.80751.03120.961.0375
SGAI 0.95260.96031.01511.06641.06221.08051.09061.11141.12911.1358
LVGI 1.15411.11221.11461.00910.96410.95320.93040.96130.97180.9626
TATA -0.0045-0.0081-0.00740.0156-0.0188-0.0442-0.0574-0.0635-0.0573-0.0418
M-score -2.49-2.46-2.51-2.49-2.56-2.69-2.75-2.71-2.78-2.64
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