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Entergy Corp (NYSE:ETR)
Beneish M-Score
-2.88 (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.

Entergy Corp has a M-score of -2.88 suggests that the company is not a manipulator.

ETR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.96   Max: -2.21
Current: -2.88

-3.96
-2.21

During the past 13 years, the highest Beneish M-Score of Entergy Corp was -2.21. The lowest was -3.96. And the median was -2.78.


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 Entergy 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 * 1.0995+0.528 * 0.9538+0.404 * 0.9896+0.892 * 0.9214+0.115 * 0.9758
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1157+4.679 * -0.0768-0.327 * 1.0326
=-2.88

* 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 $569 Mil.
Revenue was 2508.523 + 3371.406 + 2713.231 + 2920.09 = $11,513 Mil.
Gross Profit was 1649.147 + 2113.596 + 1773.471 + 1882.744 = $7,419 Mil.
Total Current Assets was $4,067 Mil.
Total Assets was $44,648 Mil.
Property, Plant and Equipment(Net PPE) was $28,044 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,117 Mil.
Selling, General & Admin. Expense(SGA) was $280 Mil.
Total Current Liabilities was $3,090 Mil.
Long-Term Debt was $13,139 Mil.
Net Income was 104.849 + -718.233 + 153.722 + 302.929 = $-157 Mil.
Non Operating Income was -20.534 + 4.124 + -3.769 + 2.718 = $-17 Mil.
Cash Flow from Operations was 941.539 + 1011.284 + 727.403 + 610.958 = $3,291 Mil.
Accounts Receivable was $561 Mil.
Revenue was 2831.318 + 3458.11 + 2996.65 + 3208.843 = $12,495 Mil.
Gross Profit was 1777.801 + 2062.452 + 1808.174 + 2030.843 = $7,679 Mil.
Total Current Assets was $4,390 Mil.
Total Assets was $46,528 Mil.
Property, Plant and Equipment(Net PPE) was $28,937 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,128 Mil.
Selling, General & Admin. Expense(SGA) was $273 Mil.
Total Current Liabilities was $3,849 Mil.
Long-Term Debt was $12,530 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)
=(568.596 / 11513.25) / (561.254 / 12494.921)
=0.04938623 / 0.04491857
=1.0995

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)
=(2113.596 / 12494.921) / (1649.147 / 11513.25)
=0.61459132 / 0.64438434
=0.9538

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 - (4067.412 + 28044.36) / 44647.681) / (1 - (4389.633 + 28936.737) / 46527.854)
=0.28077402 / 0.28373292
=0.9896

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
=11513.25 / 12494.921
=0.9214

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))
=(2127.892 / (2127.892 + 28936.737)) / (2117.236 / (2117.236 + 28044.36))
=0.06849887 / 0.07019642
=0.9758

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)
=(280.272 / 11513.25) / (272.622 / 12494.921)
=0.02434343 / 0.02181863
=1.1157

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)
=((13138.557 + 3089.958) / 44647.681) / ((12529.819 + 3848.891) / 46527.854)
=0.36347946 / 0.35201946
=1.0326

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
=(-156.733 - -17.461 - 3291.184) / 44647.681
=-0.0768

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.

Entergy Corp has a M-score of -2.88 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.

Entergy Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.76750.96230.99750.69880.98240.83181.40040.61551.0995
GMI 1.03550.87730.82111.03050.9970.93811.04831.0190.9538
AQI 1.05920.99271.02421.07581.04041.02710.92811.08070.9896
SGI 1.08171.05050.82071.0690.97750.91741.10571.09690.9214
DEPI 0.99120.97761.12480.77861.04531.03710.91150.97610.9758
SGAI 0.942301.28060.9950.92092.0580.60851.02661.1157
LVGI 0.93861.06540.9140.9551.01381.00661.00590.94131.0326
TATA -0.0831-0.0437-0.0432-0.0689-0.0448-0.0497-0.0568-0.0634-0.0768
M-score -2.94-2.59-2.93-2.98-2.70-3.14-2.23-2.99-2.88

Entergy Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.40040.9810.89520.73970.61550.6950.71391.0951.09950.9366
GMI 1.04831.05281.04081.03091.0191.01380.98830.96430.95380.9433
AQI 0.92810.94050.960.95481.08071.08921.07841.06730.98960.9728
SGI 1.10571.1391.13981.10961.09691.0180.97330.9580.92140.9178
DEPI 0.91150.89980.91770.94410.97610.99031.00270.97760.97581.0263
SGAI 0.60910.60560.83250.95221.02661.09261.1141.10171.11571.0985
LVGI 1.00591.00570.97880.99560.94130.94340.95571.01441.03261.0889
TATA -0.0571-0.0561-0.0592-0.0654-0.0631-0.0622-0.0624-0.0771-0.0768-0.0748
M-score -2.23-2.58-2.70-2.93-2.99-2.99-3.04-2.81-2.88-3.05
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