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Entergy Corp (NYSE:ETR)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

ETR' s 10-Year Beneish M-Score Range
Min: -4.15   Max: -2.28
Current: -2.99

-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 -2.81.


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 * 0.695+0.528 * 1.0138+0.404 * 1.0892+0.892 * 1.018+0.115 * 0.9903
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0926+4.679 * -0.0622-0.327 * 0.9434
=-2.99

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 302.929 + 125.007 + 234.916 + 194.281 = $857 Mil.
Non Operating Income was 2.718 + -15.041 + 18.757 + 0.113 = $7 Mil.
Cash Flow from Operations was 610.958 + 998.072 + 1362.926 + 761.406 = $3,733 Mil.
Accounts Receivable was $852 Mil.
Revenue was 3208.843 + 2691.906 + 3351.959 + 2738.208 = $11,991 Mil.
Gross Profit was 2030.843 + 1696.507 + 2076.402 + 1696.392 = $7,500 Mil.
Total Current Assets was $4,193 Mil.
Total Assets was $43,877 Mil.
Property, Plant and Equipment(Net PPE) was $28,208 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,056 Mil.
Selling, General & Admin. Expense(SGA) was $249 Mil.
Total Current Liabilities was $3,917 Mil.
Long-Term Debt was $12,230 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)
=(602.837 / 12206.168) / (852.093 / 11990.916)
=0.0493879 / 0.07106154
=0.695

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)
=(1777.801 / 11990.916) / (1882.744 / 12206.168)
=0.62548549 / 0.61699716
=1.0138

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 - (4139.985 + 29026.262) / 46377.533) / (1 - (4193.316 + 28207.908) / 43876.769)
=0.28486392 / 0.26154034
=1.0892

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
=12206.168 / 11990.916
=1.018

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))
=(2055.585 / (2055.585 + 28207.908)) / (2137.458 / (2137.458 + 29026.262))
=0.06792293 / 0.06858802
=0.9903

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)
=(276.722 / 12206.168) / (248.798 / 11990.916)
=0.02267067 / 0.02074887
=1.0926

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)
=((12336.591 + 3765.425) / 46377.533) / ((12230.249 + 3917.461) / 43876.769)
=0.34719432 / 0.36802414
=0.9434

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
=(857.133 - 6.547 - 3733.362) / 46377.533
=-0.0622

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 -2.99 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 1.34530.76750.96230.68991.01030.75041.41640.82410.8041
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 -2.20-2.93-2.58-3.23-2.70-3.07-2.35-2.85-2.82

Entergy Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.41641.41061.24851.25140.82410.9810.89520.73970.80410.695
GMI 0.93810.93330.96861.02371.04831.05281.04081.03091.0191.0138
AQI 0.98280.98060.97711.01060.9480.94050.960.95481.08071.0892
SGI 0.91740.95080.99631.07541.10571.1391.13981.10961.09691.018
DEPI 1.05621.05040.97110.92580.90350.89980.91770.94410.97610.9903
SGAI 0.50140.48370.65971.45631.18511.17460.96471.00271.02661.0926
LVGI 1.00660.99391.01270.97241.00591.00570.97880.99560.94130.9434
TATA -0.0489-0.0408-0.0441-0.0477-0.0565-0.0556-0.0589-0.065-0.0631-0.0622
M-score -2.35-2.28-2.44-2.47-2.85-2.67-2.72-2.93-2.81-2.99
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