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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

DNB' s 10-Year Beneish M-Score Range
Min: -3.02   Max: -2.1
Current: -2.61

-3.02
-2.1

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -2.10. 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 * 1.0025+0.528 * 1.0042+0.404 * 0.9987+0.892 * 1.0121+0.115 * 0.9102
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.061+4.679 * -0.0282-0.327 * 0.9641
=-2.61

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $458 Mil.
Revenue was 376.2 + 489.8 + 417.1 + 393 = $1,676 Mil.
Gross Profit was 241.6 + 340 + 269.3 + 261.3 = $1,112 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 $62 Mil.
Selling, General & Admin. Expense(SGA) was $630 Mil.
Total Current Liabilities was $1,173 Mil.
Long-Term Debt was $1,403 Mil.
Net Income was 41 + 91.7 + 67.5 + 49.9 = $250 Mil.
Non Operating Income was 1.4 + -0.3 + -7.5 + -0.2 = $-7 Mil.
Cash Flow from Operations was 158.8 + 38.8 + 55 + 61.2 = $314 Mil.
Accounts Receivable was $452 Mil.
Revenue was 381.9 + 476.7 + 411.1 + 386.4 = $1,656 Mil.
Gross Profit was 253.6 + 314.4 + 279.2 + 256.3 = $1,104 Mil.
Total Current Assets was $781 Mil.
Total Assets was $1,807 Mil.
Property, Plant and Equipment(Net PPE) was $40 Mil.
Depreciation, Depletion and Amortization(DDA) was $69 Mil.
Selling, General & Admin. Expense(SGA) was $587 Mil.
Total Current Liabilities was $867 Mil.
Long-Term Debt was $1,514 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)
=(458.2 / 1676.1) / (451.6 / 1656.1)
=0.27337271 / 0.27268885
=1.0025

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)
=(340 / 1656.1) / (241.6 / 1676.1)
=0.6663245 / 0.66356423
=1.0042

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 - (895.8 + 27.2) / 2027.7) / (1 - (781.4 + 39.9) / 1807.2)
=0.54480446 / 0.54554006
=0.9987

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
=1676.1 / 1656.1
=1.0121

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))
=(68.8 / (68.8 + 39.9)) / (62.1 / (62.1 + 27.2))
=0.63293468 / 0.69540873
=0.9102

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)
=(629.9 / 1676.1) / (586.6 / 1656.1)
=0.3758129 / 0.35420566
=1.061

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)
=((1402.7 + 1172.5) / 2027.7) / ((1513.8 + 866.9) / 1807.2)
=1.27001036 / 1.31734174
=0.9641

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
=(250.1 - -6.6 - 313.8) / 2027.7
=-0.0282

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 -2.61 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 0.99850.97311.09860.98351.01391.16120.98040.9920.90010.9467
SGI 1.02091.06081.04431.07950.97720.99381.04880.94570.99531.0161
DEPI 0.91871.31850.82430.86670.94941.04020.87850.97121.02480.9216
SGAI 0.96160.97131.03880.94640.95620.98410.97850.98970.97181.0555
LVGI 1.02931.45731.06011.15980.91060.95780.97281.1221.15141.0091
TATA -0.0258-0.0471-0.0708-0.0826-0.0348-0.0472-0.0159-0.0043-0.03870.0051
M-score -2.62-2.73-2.77-2.89-2.59-2.51-2.56-2.54-2.72-2.49

Dun & Bradstreet Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.07161.0451.02541.01621.01291.05151.07481.03051.00051.0025
GMI 0.970.95390.96150.98341.02891.04121.03791.04330.99841.0042
AQI 0.9920.97040.96110.95720.90010.87330.87560.86820.94670.9987
SGI 0.94570.93370.9530.96640.99531.00911.01161.01651.01611.0121
DEPI 0.97120.99771.02031.04211.02481.03351.04491.01110.92160.9102
SGAI 0.98970.98740.99580.96260.97180.97850.99241.05341.05551.061
LVGI 1.1221.25071.17711.20221.15141.15411.11221.11461.00910.9641
TATA -0.0043-0.0085-0.0007-0.0131-0.0387-0.0038-0.0074-0.00080.0051-0.0282
M-score -2.54-2.65-2.59-2.64-2.72-2.51-2.50-2.52-2.49-2.61
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