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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

DNB' s 10-Year Beneish M-Score Range
Min: -3.08   Max: -2.23
Current: -2.51

-3.08
-2.23

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -2.23. The lowest was -3.08. 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 * 1.0622+0.528 * 1.0379+0.404 * 0.8756+0.892 * 1.0116+0.115 * 1.0449
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9924+4.679 * -0.0074-0.327 * 1.1122
=-2.51

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $397 Mil.
Revenue was 393 + 381.9 + 476.7 + 411.1 = $1,663 Mil.
Gross Profit was 261.3 + 253.6 + 314.4 + 279.2 = $1,109 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 $67 Mil.
Selling, General & Admin. Expense(SGA) was $600 Mil.
Total Current Liabilities was $805 Mil.
Long-Term Debt was $1,567 Mil.
Net Income was 49.9 + 85.3 + 75.3 + 72.8 = $283 Mil.
Non Operating Income was -0.2 + -23.3 + -0.2 + -0.2 = $-24 Mil.
Cash Flow from Operations was 61.2 + 160.5 + 34 + 64.6 = $320 Mil.
Accounts Receivable was $369 Mil.
Revenue was 386.4 + 381 + 463.1 + 413.2 = $1,644 Mil.
Gross Profit was 256.3 + 254.8 + 337.3 + 289 = $1,137 Mil.
Total Current Assets was $629 Mil.
Total Assets was $1,839 Mil.
Property, Plant and Equipment(Net PPE) was $39 Mil.
Depreciation, Depletion and Amortization(DDA) was $75 Mil.
Selling, General & Admin. Expense(SGA) was $597 Mil.
Total Current Liabilities was $803 Mil.
Long-Term Debt was $1,408 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)
=(396.9 / 1662.7) / (369.4 / 1643.7)
=0.23870813 / 0.22473687
=1.0622

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)
=(253.6 / 1643.7) / (261.3 / 1662.7)
=0.69197542 / 0.66668671
=1.0379

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 - (744.8 + 39.7) / 1773.4) / (1 - (628.6 + 39.1) / 1838.5)
=0.55762941 / 0.6368235
=0.8756

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
=1662.7 / 1643.7
=1.0116

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))
=(74.6 / (74.6 + 39.1)) / (67 / (67 + 39.7))
=0.65611258 / 0.62792877
=1.0449

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)
=(599.5 / 1662.7) / (597.2 / 1643.7)
=0.36055813 / 0.36332664
=0.9924

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)
=((1566.8 + 805.1) / 1773.4) / ((1408 + 802.9) / 1838.5)
=1.33748731 / 1.20255643
=1.1122

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
=(283.3 - -23.9 - 320.3) / 1773.4
=-0.0074

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 -2.51 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 1.09931.02220.96361.02510.96241.02091.09250.95451.07311.0124
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 -2.64-2.57-2.79-2.77-2.89-2.58-2.52-2.47-2.63-2.72

Dun & Bradstreet Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.94150.92511.01221.07311.05381.0351.02241.01241.04041.0622
GMI 1.0060.99370.98720.970.95390.96150.98341.02891.04121.0379
AQI 1.00381.00730.99690.9920.97040.96110.95720.90010.87330.8756
SGI 1.04441.01310.97540.94570.93370.9530.96640.99531.00911.0116
DEPI 0.89930.90740.92130.97120.99771.02031.04211.02481.03351.0449
SGAI 0.98160.99691.01380.98970.98740.99580.96260.97180.97850.9924
LVGI 0.91831.03791.02291.1221.25071.17711.20221.15141.15411.1122
TATA -0.0124-0.0178-0.0059-0.0237-0.0289-0.0217-0.0341-0.0387-0.0038-0.0074
M-score -2.53-2.64-2.55-2.63-2.74-2.68-2.73-2.72-2.52-2.51
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