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EMCOR Group Inc (NYSE:EME)
Beneish M-Score
-2.50 (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.

EMCOR Group Inc has a M-score of -2.54 suggests that the company is not a manipulator.

EME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Max: -0.99
Current: -2.5

-3.12
-0.99

During the past 13 years, the highest Beneish M-Score of EMCOR Group Inc was -0.99. The lowest was -3.12. And the median was -2.48.


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 EMCOR Group 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 * 1.0537+0.528 * 1.0045+0.404 * 0.9396+0.892 * 1.0457+0.115 * 1.0017
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0022+4.679 * -0.0266-0.327 * 1.0237
=-2.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,360 Mil.
Revenue was $6,719 Mil.
Gross Profit was $944 Mil.
Total Current Assets was $2,067 Mil.
Total Assets was $3,546 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $657 Mil.
Total Current Liabilities was $1,414 Mil.
Long-Term Debt was $300 Mil.
Net Income was $172 Mil.
Non Operating Income was $0 Mil.
Cash Flow from Operations was $267 Mil.
Accounts Receivable was $1,234 Mil.
Revenue was $6,425 Mil.
Gross Profit was $907 Mil.
Total Current Assets was $1,887 Mil.
Total Assets was $3,389 Mil.
Property, Plant and Equipment(Net PPE) was $122 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General & Admin. Expense(SGA) was $626 Mil.
Total Current Liabilities was $1,283 Mil.
Long-Term Debt was $316 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)
=(1359.862 / 6718.726) / (1234.187 / 6424.965)
=0.20239879 / 0.19209241
=1.0537

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)
=(907.246 / 6424.965) / (944.479 / 6718.726)
=0.14120637 / 0.14057412
=1.0045

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 - (2067.419 + 122.018) / 3546.47) / (1 - (1886.603 + 122.178) / 3388.967)
=0.3826433 / 0.40725861
=0.9396

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
=6718.726 / 6424.965
=1.0457

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))
=(74.49 / (74.49 + 122.178)) / (74.189 / (74.189 + 122.018))
=0.37876014 / 0.37811597
=1.0017

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)
=(656.573 / 6718.726) / (626.478 / 6424.965)
=0.09772284 / 0.09750683
=1.0022

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)
=((300.065 + 1413.728) / 3546.47) / ((316.399 + 1283.417) / 3388.967)
=0.48323911 / 0.47206597
=1.0237

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
=(172.286 - 0 - 266.666) / 3546.47
=-0.0266

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.

EMCOR Group Inc has a M-score of -2.54 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 local exchange's currency.

EMCOR Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.1930.98090.76890.92951.180.94110.93211.01520.95931.0537
GMI 0.93730.95040.90740.87891.04021.09321.00751.00030.91871.0045
AQI 0.92891.65481.02541.00780.81451.29890.94051.33850.99940.9396
SGI 1.06721.20921.14480.81760.87461.15691.10371.02231.01441.0457
DEPI 1.13910.92870.92711.00631.03380.92821.00780.97240.9321.0017
SGAI 1.00650.94691.0121.14030.99430.94850.95051.0451.06361.0022
LVGI 0.98411.04630.93111.04370.85310.98050.94681.01121.00131.0237
TATA -0.0582-0.08-0.0504-0.0665-0.0596-0.0062-0.0122-0.0076-0.023-0.0266
M-score -2.56-2.46-2.83-3.12-2.71-2.25-2.50-2.36-2.67-2.54
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