Switch to:
Entergy Corp (NYSE:ETR)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

ETR' s 10-Year Beneish M-Score Range
Min: -4.15   Max: -2.28
Current: -3.04

-4.15
-2.28

During the past 13 years, the highest Beneish M-Score of Entergy Corp was -2.28. The lowest was -4.15. And the median was -2.83.


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 * 0.7139+0.528 * 0.9883+0.404 * 1.0784+0.892 * 0.9733+0.115 * 1.0027
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.114+4.679 * -0.0624-0.327 * 0.9557
=-3.04

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $598 Mil.
Revenue was 2713.231 + 2920.09 + 2831.318 + 3458.11 = $11,923 Mil.
Gross Profit was 1773.471 + 1882.744 + 1777.801 + 2062.452 = $7,496 Mil.
Total Current Assets was $4,085 Mil.
Total Assets was $46,266 Mil.
Property, Plant and Equipment(Net PPE) was $29,075 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,156 Mil.
Selling, General & Admin. Expense(SGA) was $278 Mil.
Total Current Liabilities was $3,998 Mil.
Long-Term Debt was $12,120 Mil.
Net Income was 153.722 + 302.929 + 125.007 + 234.916 = $817 Mil.
Non Operating Income was -3.769 + 2.718 + -15.041 + 18.757 = $3 Mil.
Cash Flow from Operations was 727.403 + 610.958 + 998.072 + 1362.926 = $3,699 Mil.
Accounts Receivable was $861 Mil.
Revenue was 2996.65 + 3208.843 + 2691.906 + 3351.959 = $12,249 Mil.
Gross Profit was 1808.174 + 2030.843 + 1696.507 + 2076.402 = $7,612 Mil.
Total Current Assets was $4,245 Mil.
Total Assets was $44,151 Mil.
Property, Plant and Equipment(Net PPE) was $28,308 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,105 Mil.
Selling, General & Admin. Expense(SGA) was $257 Mil.
Total Current Liabilities was $4,128 Mil.
Long-Term Debt was $11,967 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)
=(598.212 / 11922.749) / (860.952 / 12249.358)
=0.050174 / 0.07028548
=0.7139

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)
=(1882.744 / 12249.358) / (1773.471 / 11922.749)
=0.62141428 / 0.62875332
=0.9883

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 - (4085.05 + 29075.017) / 46265.651) / (1 - (4245.133 + 28307.971) / 44150.747)
=0.28326812 / 0.26268283
=1.0784

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
=11922.749 / 12249.358
=0.9733

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))
=(2105.096 / (2105.096 + 28307.971)) / (2155.81 / (2155.81 + 29075.017))
=0.06921683 / 0.06902827
=1.0027

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)
=(278.302 / 11922.749) / (256.659 / 12249.358)
=0.0233421 / 0.02095285
=1.114

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)
=((12120.424 + 3998.371) / 46265.651) / ((11967.093 + 4128.069) / 44150.747)
=0.34839659 / 0.36455016
=0.9557

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
=(816.574 - 2.665 - 3699.359) / 46265.651
=-0.0624

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 -3.04 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.34530.76750.96230.68991.01030.75041.41640.82410.8041
GMI 1.061.03550.87730.82111.03050.9970.93811.04831.019
AQI 1.06621.05920.99271.01411.05881.06460.98280.9481.0807
SGI 1.04341.08171.05050.82071.0690.97750.91741.10571.0969
DEPI 1.06740.99120.97761.0050.87991.03541.05620.90350.9761
SGAI 0.91730.942301.28060.9951.9160.50781.18511.0266
LVGI 1.17030.93861.06540.88660.98741.01081.00661.00590.9413
TATA -0.0206-0.0811-0.0417-0.043-0.0698-0.0448-0.0489-0.0568-0.0634
M-score -2.20-2.93-2.58-3.23-2.70-3.07-2.35-2.85-2.82

Entergy Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.41061.24851.25140.82410.9810.89520.73970.80410.6950.7139
GMI 0.93330.96861.02371.04831.05281.04081.03091.0191.01380.9883
AQI 0.98060.97711.01060.9480.94050.960.95481.08071.08921.0784
SGI 0.95080.99631.07541.10571.1391.13981.10961.09691.0180.9733
DEPI 1.05040.97110.92580.90350.89980.91770.94410.97610.99031.0027
SGAI 0.48370.65971.45631.18511.17460.96471.00271.02661.09261.114
LVGI 0.99391.01270.97241.00591.00570.97880.99560.94130.94340.9557
TATA -0.0408-0.0441-0.0477-0.0565-0.0556-0.0589-0.065-0.0631-0.0622-0.0624
M-score -2.28-2.44-2.47-2.85-2.67-2.72-2.93-2.81-2.99-3.04
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK