EL has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Estee Lauder Cos Inc has a M-score of -2.73 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Estee Lauder Cos Inc was -2.02. The lowest was -3.21. And the median was -2.58.
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 Estee Lauder Cos Inc 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 * 0.9412||+||0.528 * 0.9932||+||0.404 * 0.91||+||0.892 * 1.0412||+||0.115 * 0.9326|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0151||+||4.679 * -0.0443||-||0.327 * 0.9089|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $1,501 Mil.|
Revenue was 3018.7 + 2675 + 2407.4 + 2291.8 = $10,393 Mil.
Gross Profit was 2437.1 + 2130.9 + 1931.8 + 1848.7 = $8,349 Mil.
Total Current Assets was $4,926 Mil.
Total Assets was $7,841 Mil.
Property, Plant and Equipment(Net PPE) was $1,395 Mil.
Depreciation, Depletion and Amortization(DDA) was $365 Mil.
Selling, General & Admin. Expense(SGA) was $6,835 Mil.
Total Current Liabilities was $2,039 Mil.
Long-Term Debt was $1,323 Mil.
Net Income was 432.5 + 300.7 + 94 + 178.8 = $1,006 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 752.5 + 29.9 + 292.1 + 279.1 = $1,354 Mil.
|Accounts Receivable was $1,532 Mil.
Revenue was 2933 + 2549.5 + 2251.2 + 2248.2 = $9,982 Mil.
Gross Profit was 2365 + 2010.3 + 1810 + 1778.9 = $7,964 Mil.
Total Current Assets was $4,341 Mil.
Total Assets was $7,170 Mil.
Property, Plant and Equipment(Net PPE) was $1,302 Mil.
Depreciation, Depletion and Amortization(DDA) was $312 Mil.
Selling, General & Admin. Expense(SGA) was $6,467 Mil.
Total Current Liabilities was $2,052 Mil.
Long-Term Debt was $1,330 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1501 / 10392.9)||/||(1531.7 / 9981.9)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(2130.9 / 9981.9)||/||(2437.1 / 10392.9)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (4925.6 + 1395.4) / 7841.2)||/||(1 - (4341 + 1301.6) / 7170.1)|
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.
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))|
|=||(311.6 / (311.6 + 1301.6))||/||(364.5 / (364.5 + 1395.4))|
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)|
|=||(6834.9 / 10392.9)||/||(6466.9 / 9981.9)|
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)|
|=||((1322.9 + 2039.1) / 7841.2)||/||((1330.1 + 2052.2) / 7170.1)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(1006 - 0||-||1353.6)||/||7841.2|
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.
Estee Lauder Cos Inc has a M-score of -2.73 suggests that the company will not be a manipulator.
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
Estee Lauder Cos Inc Annual Data
Estee Lauder Cos Inc Quarterly Data