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Entergy Corp (NYSE:ETR)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

ETR' s 10-Year Beneish M-Score Range
Min: -4.15   Max: -2.28
Current: -2.93

-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 -2.87.


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 * 0.7397+0.528 * 1.0309+0.404 * 0.9548+0.892 * 1.1096+0.115 * 0.9441
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0027+4.679 * -0.065-0.327 * 0.9956
=-2.93

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $731 Mil.
Revenue was 3458.11 + 2996.65 + 3208.843 + 2691.906 = $12,356 Mil.
Gross Profit was 2062.452 + 1808.174 + 2030.843 + 1696.507 = $7,598 Mil.
Total Current Assets was $4,265 Mil.
Total Assets was $44,542 Mil.
Property, Plant and Equipment(Net PPE) was $28,491 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,125 Mil.
Selling, General & Admin. Expense(SGA) was $264 Mil.
Total Current Liabilities was $4,454 Mil.
Long-Term Debt was $11,665 Mil.
Net Income was 234.916 + 194.281 + 406.053 + 151.352 = $987 Mil.
Non Operating Income was 18.757 + 8.629 + -3.595 + -21.824 = $2 Mil.
Cash Flow from Operations was 1362.926 + 761.406 + 767.157 + 989.76 = $3,881 Mil.
Accounts Receivable was $890 Mil.
Revenue was 3351.959 + 2738.208 + 2608.874 + 2436.259 = $11,135 Mil.
Gross Profit was 2076.402 + 1696.392 + 1664.693 + 1621.393 = $7,059 Mil.
Total Current Assets was $3,490 Mil.
Total Assets was $43,324 Mil.
Property, Plant and Equipment(Net PPE) was $27,828 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,951 Mil.
Selling, General & Admin. Expense(SGA) was $237 Mil.
Total Current Liabilities was $3,439 Mil.
Long-Term Debt was $12,308 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)
=(730.619 / 12355.509) / (890.171 / 11135.3)
=0.05913306 / 0.07994136
=0.7397

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)
=(1808.174 / 11135.3) / (2062.452 / 12355.509)
=0.63391916 / 0.61494642
=1.0309

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 - (4264.539 + 28491.081) / 44541.649) / (1 - (3489.59 + 27827.515) / 43324.126)
=0.26460693 / 0.27714399
=0.9548

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
=12355.509 / 11135.3
=1.1096

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))
=(1950.967 / (1950.967 + 27827.515)) / (2124.638 / (2124.638 + 28491.081))
=0.065516 / 0.06939697
=0.9441

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)
=(264.181 / 12355.509) / (237.46 / 11135.3)
=0.02138164 / 0.02132498
=1.0027

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)
=((11665.016 + 4453.567) / 44541.649) / ((12308.306 + 3439.028) / 43324.126)
=0.36187666 / 0.36347725
=0.9956

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
=(986.602 - 1.967 - 3881.249) / 44541.649
=-0.065

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 -2.93 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 1.34530.76750.96230.68991.01030.75041.41641.07670.6155
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 -2.20-2.93-2.58-3.23-2.70-3.07-2.35-2.62-2.99

Entergy Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.78341.41641.41061.24851.25141.07670.76850.69640.73970.6155
GMI 0.94920.93810.93330.96861.02371.04831.05281.04081.03091.019
AQI 1.07950.98280.98060.97711.01060.9480.94080.960.95481.0807
SGI 0.91850.91740.95080.99631.07541.10571.1391.13981.10961.0969
DEPI 1.08291.05621.05040.97110.92580.90350.89980.91770.94410.9761
SGAI 0.3830.50140.48370.65971.45631.18511.17460.96471.00271.0266
LVGI 1.01351.00660.99391.01270.97241.00591.00510.97880.99560.9413
TATA -0.0611-0.0489-0.0408-0.0441-0.0477-0.0565-0.0555-0.059-0.065-0.0637
M-score -2.92-2.35-2.28-2.44-2.47-2.62-2.87-2.90-2.93-2.99
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