Switch to:
Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.78 (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 -2.78 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: -2.78

-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 * 0.9111+0.528 * 0.9837+0.404 * 1.0791+0.892 * 1.0477+0.115 * 0.96
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1291+4.679 * -0.0573-0.327 * 0.9718
=-2.78

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $437 Mil.
Revenue was 375 + 499.3 + 406.2 + 375.4 = $1,656 Mil.
Gross Profit was 242.6 + 354.4 + 273.8 + 239 = $1,110 Mil.
Total Current Assets was $866 Mil.
Total Assets was $2,176 Mil.
Property, Plant and Equipment(Net PPE) was $31 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $685 Mil.
Total Current Liabilities was $960 Mil.
Long-Term Debt was $1,725 Mil.
Net Income was 30 + 76.7 + 59 + -7.9 = $158 Mil.
Non Operating Income was 0.8 + -36.1 + 4.3 + -1.5 = $-33 Mil.
Cash Flow from Operations was 130.5 + 53.3 + 72.2 + 58.9 = $315 Mil.
Accounts Receivable was $458 Mil.
Revenue was 356.2 + 465.4 + 390.9 + 368 = $1,581 Mil.
Gross Profit was 225.2 + 322.6 + 250.5 + 243.7 = $1,042 Mil.
Total Current Assets was $896 Mil.
Total Assets was $2,028 Mil.
Property, Plant and Equipment(Net PPE) was $27 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General & Admin. Expense(SGA) was $579 Mil.
Total Current Liabilities was $1,173 Mil.
Long-Term Debt was $1,403 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)
=(437.4 / 1655.9) / (458.2 / 1580.5)
=0.26414639 / 0.28990826
=0.9111

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)
=(354.4 / 1580.5) / (242.6 / 1655.9)
=0.65928504 / 0.67020955
=0.9837

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 - (865.8 + 30.9) / 2176) / (1 - (895.8 + 27.2) / 2027.7)
=0.5879136 / 0.54480446
=1.0791

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
=1655.9 / 1580.5
=1.0477

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))
=(49 / (49 + 27.2)) / (62.7 / (62.7 + 30.9))
=0.64304462 / 0.66987179
=0.96

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)
=(684.8 / 1655.9) / (578.9 / 1580.5)
=0.41355154 / 0.36627649
=1.1291

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)
=((1725.4 + 960.2) / 2176) / ((1402.7 + 1172.5) / 2027.7)
=1.23419118 / 1.27001036
=0.9718

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
=(157.8 - -32.5 - 314.9) / 2176
=-0.0573

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 -2.78 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 1.02871.02810.96011.02841.09340.95951.07161.01290.95481.0692
GMI 1.0130.96521.01291.02571.05411.00180.971.02890.99841.0018
AQI 0.97311.09860.98351.01391.16630.97610.9920.90010.95481.0897
SGI 1.06081.04431.07950.97720.99381.04880.94570.99531.01610.9734
DEPI 1.31850.71551.0570.89681.04020.87850.97121.02480.86661.0851
SGAI 0.97131.03880.94640.95620.98410.97850.98970.97181.05551.0926
LVGI 1.45731.06011.15980.91060.96940.96111.1221.15141.00910.9613
TATA -0.0468-0.0708-0.0826-0.0348-0.0469-0.0159-0.0237-0.03870.0051-0.0734
M-score -2.73-2.78-2.87-2.59-2.51-2.55-2.63-2.72-2.53-2.74

Dun & Bradstreet Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.07581.11681.15981.13080.94121.0010.93440.90271.02110.9111
GMI 1.0351.04741.04521.05350.99561.00461.01350.98560.99870.9837
AQI 0.90010.87330.87560.86820.95480.99871.11321.15061.08971.0791
SGI 0.93710.95010.93750.92641.03071.01361.03051.05431.01921.0477
DEPI 1.09031.10411.16691.15420.85710.92130.82410.80751.03120.96
SGAI 0.94560.95260.96031.01511.06641.06221.08051.09061.11141.1291
LVGI 1.15141.15411.11221.11461.00910.96410.95320.93040.96130.9718
TATA -0.0394-0.0045-0.0081-0.00740.0156-0.0188-0.0442-0.0574-0.0635-0.0573
M-score -2.70-2.49-2.46-2.51-2.49-2.56-2.69-2.75-2.71-2.78
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK