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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

DNB' s 10-Year Beneish M-Score Range
Min: -2.89   Max: -2.23
Current: -2.49

-2.89
-2.23

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -2.23. The lowest was -2.89. And the median was -2.61.


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 * 1.0005+0.528 * 0.9984+0.404 * 0.9467+0.892 * 1.0161+0.115 * 0.9216
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0555+4.679 * 0.0051-0.327 * 1.0091
=-2.49

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $527 Mil.
Revenue was 489.8 + 417.1 + 393 + 381.9 = $1,682 Mil.
Gross Profit was 340 + 269.3 + 261.3 + 253.6 = $1,124 Mil.
Total Current Assets was $936 Mil.
Total Assets was $1,986 Mil.
Property, Plant and Equipment(Net PPE) was $27 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $625 Mil.
Total Current Liabilities was $1,159 Mil.
Long-Term Debt was $1,352 Mil.
Net Income was 91.7 + 67.5 + 49.9 + 85.3 = $294 Mil.
Non Operating Income was -0.3 + -7.5 + -0.2 + -23.3 = $-31 Mil.
Cash Flow from Operations was 38.8 + 55 + 61.2 + 160.5 = $316 Mil.
Accounts Receivable was $519 Mil.
Revenue was 476.7 + 411.1 + 386.4 + 381 = $1,655 Mil.
Gross Profit was 314.4 + 279.2 + 256.3 + 254.8 = $1,105 Mil.
Total Current Assets was $822 Mil.
Total Assets was $1,890 Mil.
Property, Plant and Equipment(Net PPE) was $40 Mil.
Depreciation, Depletion and Amortization(DDA) was $71 Mil.
Selling, General & Admin. Expense(SGA) was $583 Mil.
Total Current Liabilities was $852 Mil.
Long-Term Debt was $1,516 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)
=(527.1 / 1681.8) / (518.5 / 1655.2)
=0.3134142 / 0.3132552
=1.0005

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)
=(269.3 / 1655.2) / (340 / 1681.8)
=0.66741179 / 0.66845047
=0.9984

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 - (935.9 + 27.4) / 1986.2) / (1 - (822.4 + 39.6) / 1890.3)
=0.51500352 / 0.54398773
=0.9467

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
=1681.8 / 1655.2
=1.0161

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))
=(71.2 / (71.2 + 39.6)) / (63.1 / (63.1 + 27.4))
=0.64259928 / 0.69723757
=0.9216

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)
=(624.7 / 1681.8) / (582.5 / 1655.2)
=0.37144726 / 0.35192122
=1.0555

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)
=((1352.2 + 1158.9) / 1986.2) / ((1516 + 852.3) / 1890.3)
=1.26427349 / 1.25286991
=1.0091

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
=(294.4 - -31.3 - 315.5) / 1986.2
=0.0051

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 -2.49 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.01511.07161.0451.02541.01621.01291.05151.07481.03051.0005
GMI 0.63980.970.95390.96150.98341.02891.04121.03791.04330.9984
AQI 0.99690.9920.97040.96110.95720.90010.87330.87560.86820.9467
SGI 0.97540.94570.93370.9530.96640.99531.00911.01161.01651.0161
DEPI 0.92130.97120.99771.02031.04211.02481.03351.04491.01110.9216
SGAI 1.01380.98970.98740.99580.96260.97180.97850.99241.05341.0555
LVGI 1.02291.1221.25071.17711.20221.15141.15411.11221.11461.0091
TATA -0.0254-0.0043-0.0085-0.0007-0.0131-0.0387-0.0038-0.0074-0.00080.0051
M-score -2.82-2.54-2.65-2.59-2.64-2.72-2.51-2.50-2.52-2.49
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