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Expeditors International of Washington Inc (NAS:EXPD)
Beneish M-Score
-3.06 (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 -3.06 suggests that the company is not a manipulator.

EXPD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.6   Max: 2.81
Current: -3.06

-4.6
2.81

During the past 13 years, the highest Beneish M-Score of Expeditors International of Washington Inc was 2.81. The lowest was -4.60. And the median was -2.51.


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 * 0.856+0.528 * 0.8859+0.404 * 1.1457+0.892 * 0.9418+0.115 * 1.0488
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1167+4.679 * -0.0839-0.327 * 0.9585
=-3.06

* 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 $1,011 Mil.
Revenue was 1418.472 + 1596.221 + 1651.332 + 1691.553 = $6,358 Mil.
Gross Profit was 517.069 + 536.169 + 569.981 + 552.141 = $2,175 Mil.
Total Current Assets was $2,087 Mil.
Total Assets was $2,680 Mil.
Property, Plant and Equipment(Net PPE) was $527 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $1,294 Mil.
Total Current Liabilities was $854 Mil.
Long-Term Debt was $0 Mil.
Net Income was 96.584 + 114.449 + 118.31 + 117.76 = $447 Mil.
Non Operating Income was 0.879 + 4.031 + -3.085 + 3.804 = $6 Mil.
Cash Flow from Operations was 235.953 + 115.914 + 132.676 + 181.728 = $666 Mil.
Accounts Receivable was $1,254 Mil.
Revenue was 1677.526 + 1768.83 + 1705.105 + 1599.141 = $6,751 Mil.
Gross Profit was 529.486 + 518.871 + 513.256 + 484.714 = $2,046 Mil.
Total Current Assets was $2,352 Mil.
Total Assets was $2,944 Mil.
Property, Plant and Equipment(Net PPE) was $529 Mil.
Depreciation, Depletion and Amortization(DDA) was $48 Mil.
Selling, General & Admin. Expense(SGA) was $1,231 Mil.
Total Current Liabilities was $979 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)
=(1010.667 / 6357.578) / (1253.639 / 6750.602)
=0.15897044 / 0.18570773
=0.856

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)
=(2046.327 / 6750.602) / (2175.36 / 6357.578)
=0.30313252 / 0.34216804
=0.8859

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 - (2087.48 + 526.941) / 2679.743) / (1 - (2352.16 + 528.988) / 2943.778)
=0.02437622 / 0.02127538
=1.1457

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
=6357.578 / 6750.602
=0.9418

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))
=(48.439 / (48.439 + 528.988)) / (45.812 / (45.812 + 526.941))
=0.08388766 / 0.07998561
=1.0488

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)
=(1294.104 / 6357.578) / (1230.5 / 6750.602)
=0.20355299 / 0.18228004
=1.1167

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 + 854.415) / 2679.743) / ((0 + 979.219) / 2943.778)
=0.31884214 / 0.33264023
=0.9585

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
=(447.103 - 5.629 - 666.271) / 2679.743
=-0.0839

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 -3.06 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96491.01650.78461.41550.84950.90341.13461.02381.06640.8928
GMI 1.24810.99470.97390.83761.25520.921.0110.98491.0260.9128
AQI 0.88651.02790.92751.05780.8670.95690.95120.88651.80791.139
SGI 1.18561.13171.07620.72641.45831.03070.97241.01661.07971.0079
DEPI 1.16521.00040.97281.00631.0841.08490.98170.85170.93781.0404
SGAI 1.05770.9961.00871.22230.85961.08011.02861.0250.95961.0594
LVGI 0.9950.9560.85770.95541.05540.86321.0271.0121.1790.9802
TATA -0.0554-0.0229-0.054-0.0425-0.0231-0.0286-0.0152-0.0225-0.0081-0.0435
M-score -2.51-2.43-2.86-2.63-2.22-2.69-2.48-2.63-2.10-2.76

Expeditors International of Washington Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02581.05331.08241.07561.06641.0760.94870.93240.89280.856
GMI 0.98910.99361.01251.03421.0261.01740.98980.94530.91280.8859
AQI 0.88650.88211.72641.73731.80791.80720.97161.05071.1391.1457
SGI 1.01471.02751.04381.07051.07971.09611.09411.05721.00790.9418
DEPI 0.85170.87170.8940.90520.93780.96851.0131.04471.04041.0488
SGAI 1.01741.00940.99150.96750.95960.95650.97371.01471.05941.1167
LVGI 1.0121.11811.16961.18011.1791.07951.03181.02690.98020.9585
TATA -0.0225-0.0243-0.0108-0.0045-0.00810.0131-0.0247-0.0344-0.0435-0.0839
M-score -2.62-2.63-2.18-2.12-2.10-1.95-2.58-2.67-2.76-3.06
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