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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

DNB' s 10-Year Beneish M-Score Range
Min: -3.02   Max: -2.23
Current: -2.72

-3.02
-2.23

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -2.23. The lowest was -3.02. And the median was -2.65.


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 * 0.9509+0.528 * 1.0136+0.404 * 1.1132+0.892 * 1.0127+0.115 * 0.8445
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0718+4.679 * -0.0532-0.327 * 0.9532
=-2.72

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $377 Mil.
Revenue was 375.4 + 376.2 + 489.8 + 417.1 = $1,659 Mil.
Gross Profit was 239 + 241.6 + 340 + 269.3 = $1,090 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 $63 Mil.
Selling, General & Admin. Expense(SGA) was $637 Mil.
Total Current Liabilities was $1,182 Mil.
Long-Term Debt was $1,486 Mil.
Net Income was -7.9 + 41 + 91.7 + 67.5 = $192 Mil.
Non Operating Income was -1.5 + 1.4 + -0.3 + -7.5 = $-8 Mil.
Cash Flow from Operations was 58.9 + 158.8 + 38.8 + 55 = $312 Mil.
Accounts Receivable was $391 Mil.
Revenue was 368 + 381.9 + 476.7 + 411.1 = $1,638 Mil.
Gross Profit was 243.7 + 253.6 + 314.4 + 279.2 = $1,091 Mil.
Total Current Assets was $745 Mil.
Total Assets was $1,773 Mil.
Property, Plant and Equipment(Net PPE) was $40 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $587 Mil.
Total Current Liabilities was $805 Mil.
Long-Term Debt was $1,567 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)
=(376.8 / 1658.5) / (391.3 / 1637.7)
=0.22719325 / 0.23893265
=0.9509

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)
=(241.6 / 1637.7) / (239 / 1658.5)
=0.66611712 / 0.65716008
=1.0136

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 - (769.3 + 24.3) / 2092.7) / (1 - (744.8 + 39.7) / 1773.4)
=0.62077699 / 0.55762941
=1.1132

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
=1658.5 / 1637.7
=1.0127

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))
=(61.8 / (61.8 + 39.7)) / (62.8 / (62.8 + 24.3))
=0.608867 / 0.72101033
=0.8445

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)
=(636.6 / 1658.5) / (586.5 / 1637.7)
=0.38384082 / 0.3581242
=1.0718

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)
=((1486.1 + 1182) / 2092.7) / ((1566.8 + 805.1) / 1773.4)
=1.2749558 / 1.33748731
=0.9532

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
=(192.3 - -7.9 - 311.5) / 2092.7
=-0.0532

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 -2.72 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.97491.02871.02810.96011.02841.09340.95951.07161.01291.0005
GMI 0.99971.0130.96521.01291.02571.05411.00180.971.02890.9984
AQI 0.99850.97311.09860.98351.01391.16630.97610.9920.90010.9467
SGI 1.02091.06081.04431.07950.97720.99381.04880.94570.99531.0161
DEPI 0.91871.31850.82430.86671.06680.92570.87850.97121.02480.9216
SGAI 0.96160.97131.03880.94640.95620.98410.97850.98970.97181.0555
LVGI 1.02931.45731.06011.15980.91060.96940.96111.1221.15141.0091
TATA -0.0258-0.0471-0.0708-0.0826-0.0348-0.04690.0021-0.0237-0.03870.0051
M-score -2.62-2.73-2.77-2.89-2.57-2.52-2.47-2.63-2.72-2.49

Dun & Bradstreet Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0451.02541.01621.01291.05151.09121.04611.01561.01770.9509
GMI 0.95390.96150.98341.02891.04121.03881.04440.99921.00511.0136
AQI 0.97040.96110.95720.90010.87330.87560.86820.94670.99871.1132
SGI 0.93370.9530.96640.99531.00910.99631.00131.0010.9971.0127
DEPI 0.99771.02031.04211.02481.03351.07761.01110.92160.91020.8445
SGAI 0.98740.99580.96260.97180.97850.98571.04691.04911.05481.0718
LVGI 1.25071.17711.20221.15141.15411.11221.11461.00910.96410.9532
TATA -0.0289-0.0217-0.0341-0.0387-0.0038-0.0073-0.00080.0052-0.0281-0.0532
M-score -2.75-2.69-2.74-2.72-2.51-2.49-2.51-2.48-2.60-2.72
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