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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

DNB' s 10-Year Beneish M-Score Range
Min: -3.02   Max: -2.23
Current: -2.52

-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 * 1.0305+0.528 * 1.0433+0.404 * 0.8682+0.892 * 1.0165+0.115 * 1.0111
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0534+4.679 * -0.0008-0.327 * 1.1146
=-2.52

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $402 Mil.
Revenue was 417.1 + 393 + 381.9 + 476.7 = $1,669 Mil.
Gross Profit was 269.3 + 261.3 + 253.6 + 314.4 = $1,099 Mil.
Total Current Assets was $785 Mil.
Total Assets was $1,789 Mil.
Property, Plant and Equipment(Net PPE) was $36 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General & Admin. Expense(SGA) was $619 Mil.
Total Current Liabilities was $786 Mil.
Long-Term Debt was $1,633 Mil.
Net Income was 67.5 + 49.9 + 85.3 + 75.3 = $278 Mil.
Non Operating Income was -7.5 + -0.2 + -23.3 + -0.2 = $-31 Mil.
Cash Flow from Operations was 55 + 61.2 + 160.5 + 34 = $311 Mil.
Accounts Receivable was $383 Mil.
Revenue was 411.1 + 386.4 + 381 + 463.1 = $1,642 Mil.
Gross Profit was 279.2 + 256.3 + 254.8 + 337.3 = $1,128 Mil.
Total Current Assets was $659 Mil.
Total Assets was $1,850 Mil.
Property, Plant and Equipment(Net PPE) was $38 Mil.
Depreciation, Depletion and Amortization(DDA) was $72 Mil.
Selling, General & Admin. Expense(SGA) was $578 Mil.
Total Current Liabilities was $788 Mil.
Long-Term Debt was $1,456 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)
=(401.5 / 1668.7) / (383.3 / 1641.6)
=0.24060646 / 0.23349172
=1.0305

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)
=(261.3 / 1641.6) / (269.3 / 1668.7)
=0.68689084 / 0.6583568
=1.0433

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 - (785.4 + 36.1) / 1789.2) / (1 - (659.1 + 38.4) / 1849.9)
=0.54085625 / 0.62295259
=0.8682

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
=1668.7 / 1641.6
=1.0165

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))
=(72 / (72 + 38.4)) / (65.6 / (65.6 + 36.1))
=0.65217391 / 0.64503441
=1.0111

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)
=(618.8 / 1668.7) / (577.9 / 1641.6)
=0.37082759 / 0.3520346
=1.0534

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)
=((1633.3 + 785.7) / 1789.2) / ((1455.9 + 788) / 1849.9)
=1.35200089 / 1.21298449
=1.1146

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
=(278 - -31.2 - 310.7) / 1789.2
=-0.0008

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 -2.52 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.0530.97491.02871.02810.96011.02841.09340.95951.07161.0129
GMI 0.96240.99971.0130.96521.01291.02571.05411.00180.971.0289
AQI 0.97370.99850.97311.09860.98351.01391.16630.97610.9920.9001
SGI 1.01991.02091.06081.04431.07950.97720.99381.04880.94570.9953
DEPI 1.1190.91871.31850.82430.86671.06680.92570.87850.97121.0248
SGAI 1.03480.96160.97131.03880.94640.95620.98410.97850.98970.9718
LVGI 0.97211.02931.45731.06011.15980.91060.96940.96111.1221.1514
TATA -0.0541-0.0258-0.0471-0.0708-0.0826-0.0348-0.04690.0021-0.0237-0.0387
M-score -2.68-2.62-2.73-2.77-2.89-2.57-2.52-2.47-2.63-2.72

Dun & Bradstreet Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9351.01511.07161.0451.02541.01621.01291.05151.07481.0305
GMI 0.99370.98720.970.95390.96150.98341.02891.04121.03791.0433
AQI 1.00730.99690.9920.97040.96110.95720.90010.87330.87560.8682
SGI 1.01310.97540.94570.93370.9530.96640.99531.00911.01161.0165
DEPI 0.90740.92130.97120.99771.02031.04211.02481.03351.04491.0111
SGAI 0.99691.01380.98970.98740.99580.96260.97180.97850.99241.0534
LVGI 1.03791.02291.1221.25071.17711.20221.15141.15411.11221.1146
TATA -0.0178-0.0059-0.0237-0.0289-0.0217-0.0341-0.0387-0.0038-0.0074-0.0008
M-score -2.63-2.54-2.63-2.75-2.69-2.74-2.72-2.51-2.50-2.52
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