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Entergy Corp (NYSE:ETR)
Beneish M-Score
-2.78 (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: -2.78

-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 -2.79.


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 * 0.9957+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 * 1.0372
=-2.88

* 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 $569 Mil.
Revenue was $11,513 Mil.
Gross Profit was $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 $-157 Mil.
Non Operating Income was $-17 Mil.
Cash Flow from Operations was $3,291 Mil.
Accounts Receivable was $561 Mil.
Revenue was $12,495 Mil.
Gross Profit was $7,679 Mil.
Total Current Assets was $4,390 Mil.
Total Assets was $46,414 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 $12,416 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 / 11513.251) / (561.254 / 12494.921)
=0.04938622 / 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)
=(7679.27 / 12494.921) / (7418.959 / 11513.251)
=0.61459132 / 0.64438437
=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) / 46414.455)
=0.28077402 / 0.28198295
=0.9957

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
=11513.251 / 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 / 11513.251) / (272.621 / 12494.921)
=0.02434343 / 0.02181855
=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) / ((12416.42 + 3848.891) / 46414.455)
=0.36347946 / 0.35043632
=1.0372

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
=(-156.734 - -17.462 - 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 local exchange's 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
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