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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.82 (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 -2.82 suggests that the company is not a manipulator.

DNB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Max: -2.28
Current: -2.82

-3.02
-2.28

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -2.28. 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 * 0.8947+0.528 * 0.9852+0.404 * 1.1506+0.892 * 1.0637+0.115 * 0.8364
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.09+4.679 * -0.0737-0.327 * 0.9304
=-2.82

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $382 Mil.
Revenue was 406.2 + 375.4 + 376.2 + 562.7 = $1,721 Mil.
Gross Profit was 273.8 + 239 + 241.6 + 392.4 = $1,147 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 $66 Mil.
Selling, General & Admin. Expense(SGA) was $687 Mil.
Total Current Liabilities was $860 Mil.
Long-Term Debt was $1,760 Mil.
Net Income was 59 + -7.9 + 41 + 91.7 = $184 Mil.
Non Operating Income was -18.4 + -1.5 + 1.4 + 27.1 = $9 Mil.
Cash Flow from Operations was 72.2 + 58.9 + 158.8 + 38.8 = $329 Mil.
Accounts Receivable was $402 Mil.
Revenue was 390.9 + 368 + 381.9 + 476.7 = $1,618 Mil.
Gross Profit was 250.5 + 243.7 + 253.6 + 314.4 = $1,062 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 $58 Mil.
Selling, General & Admin. Expense(SGA) was $592 Mil.
Total Current Liabilities was $786 Mil.
Long-Term Debt was $1,633 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)
=(382.1 / 1720.5) / (401.5 / 1617.5)
=0.2220866 / 0.24822257
=0.8947

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)
=(239 / 1617.5) / (273.8 / 1720.5)
=0.65669243 / 0.66655042
=0.9852

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 - (762.9 + 23.6) / 2082.4) / (1 - (785.4 + 36.1) / 1789.2)
=0.6223108 / 0.54085625
=1.1506

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
=1720.5 / 1617.5
=1.0637

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 + 36.1)) / (65.6 / (65.6 + 23.6))
=0.61513859 / 0.73542601
=0.8364

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)
=(686.7 / 1720.5) / (592.3 / 1617.5)
=0.39912816 / 0.36618238
=1.09

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)
=((1759.9 + 859.5) / 2082.4) / ((1633.3 + 785.7) / 1789.2)
=1.25787553 / 1.35200089
=0.9304

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
=(183.8 - 8.6 - 328.7) / 2082.4
=-0.0737

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 -2.82 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.02541.01621.01291.05151.09121.06310.98780.98970.92480.8947
GMI 0.96150.98341.02891.04121.03881.0460.99711.00271.0110.9852
AQI 0.96110.95720.90010.87330.87560.86820.94670.99871.11321.1506
SGI 0.9530.96640.99531.00910.99630.98531.02921.02521.04121.0637
DEPI 1.02031.04211.02481.03351.07761.06020.92160.91020.84450.8364
SGAI 0.99580.96260.97180.97850.98571.04021.06021.06561.08161.09
LVGI 1.17711.20221.15141.15411.11221.11461.00910.96410.95320.9304
TATA -0.0217-0.0341-0.0387-0.0038-0.00730.0034-0.0048-0.0379-0.0627-0.0737
M-score -2.69-2.74-2.72-2.51-2.49-2.49-2.53-2.65-2.77-2.82
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