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Expeditors International of Washington, Inc. (NAS:EXPD)
Beneish M-Score
-2.62 (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.

Expeditors International of Washington, Inc. has a M-score of -2.62 suggests that the company is not a manipulator.

EXPD' s 10-Year Beneish M-Score Range
Min: -6.32   Max: -1.65
Current: -2.62

-6.32
-1.65

During the past 13 years, the highest Beneish M-Score of Expeditors International of Washington, Inc. was -1.65. The lowest was -6.32. And the median was -2.56.


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 Expeditors International of Washington, Inc. 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 * 1.0258+0.528 * 0.9891+0.404 * 0.8865+0.892 * 1.0147+0.115 * 0.8517
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0174+4.679 * -0.0225-0.327 * 1.012
=-2.62

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,074 Mil.
Revenue was 1634.23 + 1535.089 + 1500.453 + 1410.485 = $6,080 Mil.
Gross Profit was 486.443 + 482.025 + 469.101 + 445.284 = $1,883 Mil.
Total Current Assets was $2,415 Mil.
Total Assets was $3,015 Mil.
Property, Plant and Equipment(Net PPE) was $563 Mil.
Depreciation, Depletion and Amortization(DDA) was $48 Mil.
Selling, General & Admin. Expense(SGA) was $1,164 Mil.
Total Current Liabilities was $870 Mil.
Long-Term Debt was $0 Mil.
Net Income was 83.496 + 92.4 + 92.315 + 80.315 = $349 Mil.
Non Operating Income was 1.645 + 1.212 + 4.325 + 1.531 = $9 Mil.
Cash Flow from Operations was 61.953 + 96.293 + 84.026 + 165.264 = $408 Mil.
Accounts Receivable was $1,031 Mil.
Revenue was 1544.229 + 1531.664 + 1504.952 + 1411.37 = $5,992 Mil.
Gross Profit was 470.01 + 465.138 + 453.651 + 446.571 = $1,835 Mil.
Total Current Assets was $2,358 Mil.
Total Assets was $2,954 Mil.
Property, Plant and Equipment(Net PPE) was $556 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $1,128 Mil.
Total Current Liabilities was $843 Mil.
Long-Term Debt was $0 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)
=(1073.5 / 6080.257) / (1031.376 / 5992.215)
=0.17655504 / 0.17211932
=1.0258

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)
=(482.025 / 5992.215) / (486.443 / 6080.257)
=0.30629241 / 0.30966668
=0.9891

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 - (2415.269 + 563.064) / 3014.812) / (1 - (2357.599 + 556.204) / 2954.125)
=0.01209993 / 0.01364939
=0.8865

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
=6080.257 / 5992.215
=1.0147

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))
=(39.94 / (39.94 + 556.204)) / (48.071 / (48.071 + 563.064))
=0.06699724 / 0.07865856
=0.8517

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)
=(1164.281 / 6080.257) / (1127.816 / 5992.215)
=0.19148549 / 0.18821354
=1.0174

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)
=((0 + 870.2) / 3014.812) / ((0 + 842.558) / 2954.125)
=0.28864155 / 0.28521407
=1.012

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
=(348.526 - 8.713 - 407.536) / 3014.812
=-0.0225

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.

Expeditors International of Washington, Inc. has a M-score of -2.62 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.

Expeditors International of Washington, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.07340.98230.96331.01830.78461.41550.84950.90341.13251.0258
GMI 1.02510.86640.97481.00380.97530.84221.19120.921.00670.9891
AQI 0.72850.85640.88651.02790.92751.05780.8670.95690.95120.8865
SGI 1.2641.17591.18771.12971.07620.72641.45831.03070.97431.0147
DEPI 1.07820.96331.16521.00040.97281.00631.0841.11670.95370.8517
SGAI 0.951120.50450.98710.99581.01231.23070.78651.08011.03641.0174
LVGI 1.03871.01750.9950.9560.85770.95541.05540.86321.0271.012
TATA -0.0393-0.0518-0.0554-0.0229-0.054-0.0425-0.0231-0.0286-0.0148-0.0225
M-score -2.45-6.08-2.64-2.43-2.86-2.62-2.24-2.69-2.49-2.62

Expeditors International of Washington, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.8330.90340.94760.99881.06571.13251.06981.04231.00521.0258
GMI 0.98240.920.92570.94130.97161.00671.01151.00480.99330.9891
AQI 0.99480.95690.92750.93070.92530.95120.98410.93020.92180.8865
SGI 1.10621.03070.97970.95750.95490.97430.9820.99371.00681.0147
DEPI 1.08461.11671.09031.05921.03920.95370.89280.87310.85550.8517
SGAI 1.03431.08011.09781.08791.05781.03641.02241.01691.01881.0174
LVGI 0.88510.86320.85560.92150.95161.0270.99860.95160.97611.012
TATA -0.0377-0.0286-0.0218-0.0313-0.0257-0.0148-0.0195-0.0139-0.0213-0.0225
M-score -2.69-2.69-2.68-2.71-2.61-2.49-2.54-2.54-2.62-2.62
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