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Dun & Bradstreet Corp (NYSE:DNB)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

DNB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89   Max: -2.43
Current: -2.75

-2.89
-2.43

During the past 13 years, the highest Beneish M-Score of Dun & Bradstreet Corp was -2.43. The lowest was -2.89. And the median was -2.63.


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 * 1.0088+0.528 * 0.996+0.404 * 1.0897+0.892 * 1.0317+0.115 * 1.0312
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1192+4.679 * -0.0717-0.327 * 0.9613
=-2.75

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $524 Mil.
Revenue was 499.3 + 406.2 + 375.4 + 376.2 = $1,657 Mil.
Gross Profit was 354.4 + 273.8 + 239 + 241.6 = $1,109 Mil.
Total Current Assets was $960 Mil.
Total Assets was $2,274 Mil.
Property, Plant and Equipment(Net PPE) was $27 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $677 Mil.
Total Current Liabilities was $959 Mil.
Long-Term Debt was $1,804 Mil.
Net Income was 76.7 + 59 + -7.9 + 41 = $169 Mil.
Non Operating Income was 7.2 + -18.4 + -1.5 + 1.4 = $-11 Mil.
Cash Flow from Operations was 53.3 + 72.2 + 58.9 + 158.8 = $343 Mil.
Accounts Receivable was $503 Mil.
Revenue was 465.4 + 390.9 + 368 + 381.9 = $1,606 Mil.
Gross Profit was 322.6 + 250.5 + 243.7 + 253.6 = $1,070 Mil.
Total Current Assets was $933 Mil.
Total Assets was $1,986 Mil.
Property, Plant and Equipment(Net PPE) was $22 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General & Admin. Expense(SGA) was $587 Mil.
Total Current Liabilities was $1,159 Mil.
Long-Term Debt was $1,352 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)
=(523.5 / 1657.1) / (503 / 1606.2)
=0.31591334 / 0.3131615
=1.0088

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)
=(273.8 / 1606.2) / (354.4 / 1657.1)
=0.66641763 / 0.66912075
=0.996

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 - (959.6 + 27.2) / 2273.6) / (1 - (932.6 + 22) / 1986.2)
=0.56597467 / 0.51938375
=1.0897

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
=1657.1 / 1606.2
=1.0317

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))
=(52.5 / (52.5 + 22)) / (58.7 / (58.7 + 27.2))
=0.70469799 / 0.68335274
=1.0312

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)
=(677.2 / 1657.1) / (586.5 / 1606.2)
=0.40866574 / 0.36514755
=1.1192

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)
=((1804.1 + 959.2) / 2273.6) / ((1352.2 + 1158.9) / 1986.2)
=1.21538529 / 1.26427349
=0.9613

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
=(168.8 - -11.3 - 343.2) / 2273.6
=-0.0717

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 -2.75 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02871.02810.96011.02841.09340.95951.07161.07580.95411.0073
GMI 1.0130.96521.01291.02571.05411.00180.971.0350.99710.9973
AQI 0.97311.09860.98351.01391.16630.97610.9920.90010.95481.0897
SGI 1.06081.04431.07950.97720.99381.04880.94570.93711.01671.0332
DEPI 1.31850.82430.86671.06680.92570.87850.97121.09030.85711.0312
SGAI 0.97131.03880.94640.95620.98410.97850.98970.94561.06091.1172
LVGI 1.45731.06011.15980.91060.96940.96111.1221.15141.00910.9613
TATA -0.0471-0.0708-0.0826-0.0348-0.0469-0.0159-0.0237-0.03940.0042-0.0734
M-score -2.73-2.77-2.89-2.57-2.52-2.55-2.63-2.70-2.54-2.76

Dun & Bradstreet Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.01621.07581.11681.15981.13080.94120.98850.92280.89161.0088
GMI 0.98341.0351.04741.04521.05350.99561.00161.01030.98270.996
AQI 0.95720.90010.87330.87560.86820.95480.99871.11321.15061.0897
SGI 0.96640.93710.95010.93750.92641.03071.02641.04351.06741.0317
DEPI 1.04211.09031.10411.16691.15420.85710.90530.82410.80751.0312
SGAI 0.96260.94560.95260.96031.01511.06641.07211.08991.09931.1192
LVGI 1.20221.15141.15411.11221.11461.00910.96410.95320.93040.9613
TATA -0.0341-0.0394-0.0045-0.00810.0026-0.0057-0.0388-0.0636-0.0746-0.0717
M-score -2.74-2.70-2.49-2.46-2.46-2.58-2.66-2.78-2.83-2.75
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