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Entergy Corp (NYSE:ETR)
Beneish M-Score
-3.02 (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 -3.02 suggests that the company is not a manipulator.

ETR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.45   Max: -1.52
Current: -3.02

-3.45
-1.52

During the past 13 years, the highest Beneish M-Score of Entergy Corp was -1.52. The lowest was -3.45. And the median was -2.80.


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 * 0.9093+0.528 * 0.9375+0.404 * 0.9795+0.892 * 0.9186+0.115 * 1.0506
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1218+4.679 * -0.0658-0.327 * 1.0736
=-3.02

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $500 Mil.
Revenue was 2462.562 + 2609.852 + 2508.523 + 3371.406 = $10,952 Mil.
Gross Profit was 1791.38 + 1791.332 + 1649.147 + 2113.596 = $7,345 Mil.
Total Current Assets was $3,852 Mil.
Total Assets was $45,877 Mil.
Property, Plant and Equipment(Net PPE) was $29,296 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,060 Mil.
Selling, General & Admin. Expense(SGA) was $287 Mil.
Total Current Liabilities was $4,022 Mil.
Long-Term Debt was $13,138 Mil.
Net Income was 572.59 + 235.242 + 104.849 + -718.233 = $194 Mil.
Non Operating Income was 5.483 + 18.027 + -20.534 + 4.124 = $7 Mil.
Cash Flow from Operations was 719.259 + 532.821 + 941.539 + 1011.284 = $3,205 Mil.
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.



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)
=(499.66 / 10952.343) / (598.212 / 11922.749)
=0.04562129 / 0.050174
=0.9093

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)
=(7496.468 / 11922.749) / (7345.455 / 10952.343)
=0.62875332 / 0.6706743
=0.9375

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 - (3851.928 + 29295.675) / 45877.042) / (1 - (4085.05 + 29075.017) / 46265.651)
=0.27746861 / 0.28326812
=0.9795

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
=10952.343 / 11922.749
=0.9186

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))
=(2155.81 / (2155.81 + 29075.017)) / (2060.101 / (2060.101 + 29295.675))
=0.06902827 / 0.06570085
=1.0506

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)
=(286.796 / 10952.343) / (278.302 / 11922.749)
=0.02618581 / 0.0233421
=1.1218

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)
=((13137.639 + 4021.843) / 45877.042) / ((12120.424 + 3998.371) / 46265.651)
=0.374032 / 0.34839659
=1.0736

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
=(194.448 - 7.1 - 3204.903) / 45877.042
=-0.0658

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 -3.02 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 0.76750.96230.68991.01030.75041.41640.82410.80411.0995
GMI 1.03550.87730.82111.03050.9970.93811.04831.0190.9538
AQI 1.05920.99271.04071.05881.06460.98280.9481.07410.9957
SGI 1.08171.05050.82071.0690.97750.91741.10571.09690.9214
DEPI 0.99120.97760.99540.87991.03541.05620.90350.97610.9758
SGAI 0.942301.28060.9950.92091.05661.18511.02661.1157
LVGI 0.93861.06540.88660.98741.01081.00661.00590.93711.0372
TATA -0.0831-0.0437-0.043-0.0698-0.0439-0.0489-0.0574-0.0643-0.0768
M-score -2.94-2.59-3.22-2.70-2.90-2.44-2.86-2.82-2.88

Entergy Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9810.89520.73970.80410.6950.71391.0951.09950.93660.9093
GMI 1.05281.04081.03091.0191.01380.98830.96430.95380.94330.9375
AQI 0.94050.960.95481.07411.08921.07841.06730.99570.97280.9795
SGI 1.1391.13981.10961.09691.0180.97330.9580.92140.91780.9186
DEPI 0.89980.91770.94410.97610.99031.00270.97760.97581.02631.0506
SGAI 1.17460.96471.00271.02661.09261.1141.10171.11571.09851.1218
LVGI 1.00570.97880.99560.93710.94340.95571.01441.03721.08891.0736
TATA -0.0562-0.0595-0.0654-0.0643-0.0633-0.0636-0.0785-0.077-0.0748-0.0658
M-score -2.68-2.72-2.94-2.82-3.00-3.04-2.81-2.88-3.05-3.02
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