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Entergy Corp (NYSE:ETR)
Beneish M-Score
-3.05 (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 -3.05 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: -3.05

-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 -2.79.


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 * 0.9366+0.528 * 0.9433+0.404 * 0.9728+0.892 * 0.9178+0.115 * 1.0263
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0985+4.679 * -0.0748-0.327 * 1.0889
=-3.05

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $518 Mil.
Revenue was 2609.852 + 2508.523 + 3371.406 + 2713.231 = $11,203 Mil.
Gross Profit was 1791.332 + 1649.147 + 2113.596 + 1773.471 = $7,328 Mil.
Total Current Assets was $4,001 Mil.
Total Assets was $45,934 Mil.
Property, Plant and Equipment(Net PPE) was $29,203 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,091 Mil.
Selling, General & Admin. Expense(SGA) was $279 Mil.
Total Current Liabilities was $3,839 Mil.
Long-Term Debt was $13,526 Mil.
Net Income was 235.242 + 104.849 + -718.233 + 153.722 = $-224 Mil.
Non Operating Income was 18.027 + -20.534 + 4.124 + -3.769 = $-2 Mil.
Cash Flow from Operations was 532.821 + 941.539 + 1011.284 + 727.403 = $3,213 Mil.
Accounts Receivable was $603 Mil.
Revenue was 2920.09 + 2831.318 + 3458.11 + 2996.65 = $12,206 Mil.
Gross Profit was 1882.744 + 1777.801 + 2062.452 + 1808.174 = $7,531 Mil.
Total Current Assets was $4,140 Mil.
Total Assets was $46,378 Mil.
Property, Plant and Equipment(Net PPE) was $29,026 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,137 Mil.
Selling, General & Admin. Expense(SGA) was $277 Mil.
Total Current Liabilities was $3,765 Mil.
Long-Term Debt was $12,337 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)
=(518.207 / 11203.012) / (602.837 / 12206.168)
=0.04625604 / 0.0493879
=0.9366

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)
=(1649.147 / 12206.168) / (1791.332 / 11203.012)
=0.61699716 / 0.65406928
=0.9433

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 - (4001.195 + 29203.439) / 45933.882) / (1 - (4139.985 + 29026.262) / 46377.533)
=0.2771211 / 0.28486392
=0.9728

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
=11203.012 / 12206.168
=0.9178

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))
=(2137.458 / (2137.458 + 29026.262)) / (2091.476 / (2091.476 + 29203.439))
=0.06858802 / 0.06683118
=1.0263

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)
=(279.001 / 11203.012) / (276.722 / 12206.168)
=0.02490411 / 0.02267067
=1.0985

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)
=((13526.43 + 3839.348) / 45933.882) / ((12336.591 + 3765.425) / 46377.533)
=0.37806032 / 0.34719432
=1.0889

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
=(-224.42 - -2.152 - 3213.047) / 45933.882
=-0.0748

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 -3.05 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 1.06770.87730.82111.03050.9970.93811.04831.0190.9538
AQI 1.05920.99271.04071.05881.06460.98280.9481.07410.9957
SGI 1.08171.05050.82071.0690.97750.91741.10571.09690.9214
DEPI 0.99120.97760.99340.77861.03541.05620.90350.97610.9758
SGAI 0.942300.9730.9950.92092.0580.60851.02661.1157
LVGI 0.93861.06540.88660.98741.01081.00661.00590.93711.0372
TATA -0.0831-0.0437-0.043-0.0689-0.0448-0.0497-0.0568-0.0636-0.0768
M-score -2.92-2.59-3.16-2.71-2.90-2.62-2.75-2.82-2.88

Entergy Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.82410.9810.89520.73970.80410.6950.71391.0951.09950.9366
GMI 1.04831.05281.04081.03091.0191.01380.98830.96430.95380.9433
AQI 0.9480.94050.960.95481.07411.08921.07841.06730.99570.9728
SGI 1.10571.1391.13981.10961.09691.0180.97330.9580.92140.9178
DEPI 0.90350.89980.91770.94410.97610.99031.00270.97760.97581.0263
SGAI 1.18511.17460.96471.00271.02661.09261.1141.10171.11571.0985
LVGI 1.00591.00570.97880.99560.93710.94340.95571.01441.03721.0889
TATA -0.0571-0.0562-0.0595-0.0654-0.0643-0.0633-0.0636-0.0785-0.077-0.0748
M-score -2.86-2.68-2.72-2.94-2.82-3.00-3.04-2.81-2.88-3.05
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