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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 -2.78 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 * 1.0294+0.528 * 0.9147+0.404 * 1.027+0.892 * 0.9045+0.115 * 1.0926
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2022+4.679 * -0.0398-0.327 * 0.9894
=-2.78

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $714 Mil.
Revenue was 3124.703 + 2462.562 + 2609.852 + 2508.523 = $10,706 Mil.
Gross Profit was 2231.931 + 1791.38 + 1791.332 + 1649.147 = $7,464 Mil.
Total Current Assets was $4,340 Mil.
Total Assets was $47,738 Mil.
Property, Plant and Equipment(Net PPE) was $29,552 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,053 Mil.
Selling, General & Admin. Expense(SGA) was $303 Mil.
Total Current Liabilities was $3,452 Mil.
Long-Term Debt was $13,887 Mil.
Net Income was 393.204 + 572.59 + 235.242 + 104.849 = $1,306 Mil.
Non Operating Income was 8.711 + 5.483 + 18.027 + -20.534 = $12 Mil.
Cash Flow from Operations was 1000.315 + 719.259 + 532.821 + 941.539 = $3,194 Mil.
Accounts Receivable was $766 Mil.
Revenue was 3371.406 + 2713.231 + 2920.09 + 2831.318 = $11,836 Mil.
Gross Profit was 2113.596 + 1773.471 + 1882.744 + 1777.801 = $7,548 Mil.
Total Current Assets was $4,117 Mil.
Total Assets was $45,042 Mil.
Property, Plant and Equipment(Net PPE) was $28,204 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,155 Mil.
Selling, General & Admin. Expense(SGA) was $279 Mil.
Total Current Liabilities was $3,454 Mil.
Long-Term Debt was $13,080 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)
=(713.583 / 10705.64) / (766.383 / 11836.045)
=0.06665487 / 0.06474992
=1.0294

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)
=(7547.612 / 11836.045) / (7463.79 / 10705.64)
=0.63768024 / 0.69718298
=0.9147

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 - (4340.035 + 29552.133) / 47738.181) / (1 - (4117.346 + 28204.307) / 45041.605)
=0.29004065 / 0.2824045
=1.027

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
=10705.64 / 11836.045
=0.9045

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))
=(2155.035 / (2155.035 + 28204.307)) / (2053.418 / (2053.418 + 29552.133))
=0.07098425 / 0.06497017
=1.0926

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)
=(303.174 / 10705.64) / (278.82 / 11836.045)
=0.02831909 / 0.02355686
=1.2022

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)
=((13886.66 + 3451.747) / 47738.181) / ((13080.244 + 3453.826) / 45041.605)
=0.3631979 / 0.36708439
=0.9894

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
=(1305.885 - 11.687 - 3193.934) / 47738.181
=-0.0398

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 -2.78 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 0.76750.96230.99750.69880.98240.83181.40040.61551.0995
GMI 1.03550.87730.82111.03050.9970.93811.04831.0190.9538
AQI 1.05920.99271.02421.07581.04041.02710.92811.08070.9896
SGI 1.08171.05050.82071.0690.97750.91741.10571.09690.9214
DEPI 0.99120.97761.12480.77861.04531.03710.91150.97610.9758
SGAI 0.942301.28060.9950.92092.0580.60851.02661.1157
LVGI 0.93861.06540.9140.9551.01381.00661.00590.94131.0326
TATA -0.0831-0.0437-0.0432-0.0689-0.0448-0.0497-0.0568-0.0634-0.0768
M-score -2.94-2.59-2.93-2.98-2.70-3.14-2.23-2.99-2.88

Entergy Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.89520.73970.61550.6950.71391.0951.09950.93660.90931.0294
GMI 1.04081.03091.0191.01380.98830.96430.95380.94330.93750.9147
AQI 0.960.95481.08071.08921.07841.06730.98960.97280.97951.027
SGI 1.13981.10961.09691.0180.97330.9580.92140.91780.91860.9045
DEPI 0.91770.94410.97610.99031.00270.97760.97581.02631.05061.0926
SGAI 0.83250.95221.02661.09261.1141.10171.11571.09851.12181.2022
LVGI 0.97880.99560.94130.94340.95571.01441.03261.08891.07360.9894
TATA -0.0592-0.0654-0.0631-0.0623-0.0625-0.0772-0.077-0.0748-0.0658-0.0398
M-score -2.70-2.93-2.99-2.99-3.04-2.81-2.88-3.05-3.02-2.78
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