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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.83 (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 -2.83 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: -2.83

-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 -2.71.


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 * 0.9788+0.528 * 0.9753+0.404 * 0.9705+0.892 * 1.0358+0.115 * 1.0699
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0871+4.679 * -0.0719-0.327 * 0.9866
=-2.83

* 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 $387 Mil.
Revenue was 412.8 + 398.8 + 375 + 499.3 = $1,686 Mil.
Gross Profit was 282.1 + 265.8 + 242.6 + 354.4 = $1,145 Mil.
Total Current Assets was $765 Mil.
Total Assets was $2,017 Mil.
Property, Plant and Equipment(Net PPE) was $34 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $717 Mil.
Total Current Liabilities was $917 Mil.
Long-Term Debt was $1,586 Mil.
Net Income was -29.4 + 18.8 + 30 + 76.7 = $96 Mil.
Non Operating Income was -92.2 + -0.5 + 0.8 + -0.2 = $-92 Mil.
Cash Flow from Operations was 99.1 + 50.4 + 130.5 + 53.3 = $333 Mil.
Accounts Receivable was $382 Mil.
Revenue was 406.2 + 375.4 + 356.2 + 489.8 = $1,628 Mil.
Gross Profit was 273.8 + 239 + 225.2 + 340 = $1,078 Mil.
Total Current Assets was $763 Mil.
Total Assets was $2,082 Mil.
Property, Plant and Equipment(Net PPE) was $24 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $637 Mil.
Total Current Liabilities was $860 Mil.
Long-Term Debt was $1,760 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)
=(387.4 / 1685.9) / (382.1 / 1627.6)
=0.22978824 / 0.23476284
=0.9788

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)
=(1078 / 1627.6) / (1144.9 / 1685.9)
=0.6623249 / 0.67910315
=0.9753

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 - (764.8 + 34) / 2016.9) / (1 - (762.9 + 23.6) / 2082.4)
=0.60394665 / 0.6223108
=0.9705

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
=1685.9 / 1627.6
=1.0358

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))
=(57.7 / (57.7 + 23.6)) / (67 / (67 + 34))
=0.7097171 / 0.66336634
=1.0699

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)
=(716.7 / 1685.9) / (636.5 / 1627.6)
=0.42511418 / 0.3910666
=1.0871

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)
=((1586.4 + 916.5) / 2016.9) / ((1759.9 + 859.5) / 2082.4)
=1.24096386 / 1.25787553
=0.9866

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
=(96.1 - -92.1 - 333.3) / 2016.9
=-0.0719

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 -2.83 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.

Dun & Bradstreet Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02871.02810.96011.02841.09340.95951.07161.01291.00051.0203
GMI 1.0130.96521.01291.02571.05411.00180.971.02890.99841.0018
AQI 0.97311.09860.98351.01391.16120.98040.9920.90010.94671.0963
SGI 1.06081.04431.07950.97720.99381.04880.94570.99531.01610.9734
DEPI 1.31850.82430.86670.94941.04020.87850.97121.02480.92161.0203
SGAI 0.97131.03880.94640.95620.98410.97850.98970.97181.05551.0926
LVGI 1.45731.06011.15980.91060.95780.97281.1221.15141.00910.9619
TATA -0.0468-0.0708-0.0826-0.0348-0.0472-0.0159-0.0237-0.03870.0051-0.0736
M-score -2.73-2.77-2.89-2.59-2.51-2.56-2.63-2.72-2.49-2.79

Dun & Bradstreet Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.07481.03051.00051.01460.97720.97571.02030.95471.06450.9788
GMI 1.03791.04330.99841.0071.01760.9941.00180.98730.9680.9753
AQI 0.87560.86820.94670.99871.11321.15061.09631.07910.94930.9705
SGI 1.01161.01651.016110.98540.97540.97340.99991.02491.0358
DEPI 1.04491.01110.92160.92180.89280.90891.02031.0251.06941.0699
SGAI 0.99241.05341.05551.0521.05591.05461.09261.10981.12461.0871
LVGI 1.11221.11461.00910.96410.95320.93040.96190.97180.96260.9866
TATA -0.0074-0.00080.0051-0.0291-0.0541-0.0659-0.0736-0.0676-0.0522-0.0719
M-score -2.50-2.52-2.49-2.61-2.72-2.77-2.79-2.82-2.68-2.83
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