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Expeditors International of Washington Inc (NAS:EXPD)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

EXPD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.6   Max: 2.76
Current: -2.67

-4.6
2.76

During the past 13 years, the highest Beneish M-Score of Expeditors International of Washington Inc was 2.76. The lowest was -4.60. And the median was -2.59.


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 * 0.9324+0.528 * 0.9453+0.404 * 1.0507+0.892 * 1.0572+0.115 * 1.0447
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0147+4.679 * -0.0344-0.327 * 1.0269
=-2.67

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,166 Mil.
Revenue was 1651.332 + 1691.553 + 1677.526 + 1768.83 = $6,789 Mil.
Gross Profit was 569.981 + 552.141 + 529.486 + 518.871 = $2,170 Mil.
Total Current Assets was $2,235 Mil.
Total Assets was $2,827 Mil.
Property, Plant and Equipment(Net PPE) was $528 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $1,281 Mil.
Total Current Liabilities was $955 Mil.
Long-Term Debt was $0 Mil.
Net Income was 118.31 + 117.76 + 106.704 + 99.381 = $442 Mil.
Non Operating Income was -3.085 + 3.804 + 0.034 + 0.223 = $1 Mil.
Cash Flow from Operations was 132.676 + 181.728 + 134.394 + 89.532 = $538 Mil.
Accounts Receivable was $1,183 Mil.
Revenue was 1705.105 + 1599.141 + 1491.645 + 1625.859 = $6,422 Mil.
Gross Profit was 513.256 + 484.714 + 464.586 + 478.072 = $1,941 Mil.
Total Current Assets was $2,318 Mil.
Total Assets was $2,926 Mil.
Property, Plant and Equipment(Net PPE) was $545 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $1,194 Mil.
Total Current Liabilities was $963 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)
=(1166.3 / 6789.241) / (1183.167 / 6421.75)
=0.17178651 / 0.1842437
=0.9324

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)
=(552.141 / 6421.75) / (569.981 / 6789.241)
=0.30219613 / 0.31969391
=0.9453

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 - (2235.46 + 527.893) / 2827.018) / (1 - (2317.972 + 545.366) / 2926.053)
=0.0225202 / 0.02143331
=1.0507

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
=6789.241 / 6421.75
=1.0572

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))
=(50.03 / (50.03 + 545.366)) / (46.176 / (46.176 + 527.893))
=0.08402811 / 0.08043632
=1.0447

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)
=(1281.105 / 6789.241) / (1194.264 / 6421.75)
=0.18869635 / 0.18597174
=1.0147

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 + 955.202) / 2827.018) / ((0 + 962.798) / 2926.053)
=0.33788324 / 0.32904325
=1.0269

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
=(442.155 - 0.976 - 538.33) / 2827.018
=-0.0344

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 -2.67 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.98230.96331.01830.78461.41550.84950.90341.13251.02581.0664
GMI 0.76960.97821.00490.97390.88261.19120.921.00670.98911.026
AQI 0.85640.88651.02790.92751.05780.8670.95690.95120.88651.8079
SGI 1.17591.18771.12971.07620.72641.45831.03070.97431.01471.0797
DEPI 0.96331.16521.00040.97281.00631.0841.11670.95370.85170.9378
SGAI 6.67260.990.99781.00871.33580.78651.08011.03641.01740.9596
LVGI 1.01750.9950.9560.85770.95541.05540.86321.0271.0121.179
TATA -0.0518-0.0554-0.0229-0.054-0.0425-0.0231-0.0286-0.0148-0.0225-0.0081
M-score -3.75-2.64-2.43-2.86-2.62-2.24-2.69-2.49-2.62-2.10

Expeditors International of Washington Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.04141.00381.02581.05331.08241.07561.06641.0760.94870.9324
GMI 1.00280.99030.98910.99361.01251.03421.0261.01740.98980.9453
AQI 0.93020.92180.88650.88211.72641.73731.80791.80720.97161.0507
SGI 0.99461.00821.01471.02751.04381.07051.07971.09611.09411.0572
DEPI 0.87310.85550.85170.87170.8940.90520.93780.96851.0131.0447
SGAI 1.02051.02431.01741.00940.99150.96750.95960.95650.97371.0147
LVGI 0.95160.97611.0121.11811.16961.18011.1791.07951.03181.0269
TATA -0.0139-0.0213-0.0225-0.0243-0.0108-0.0045-0.00810.0131-0.0247-0.0344
M-score -2.54-2.62-2.62-2.63-2.18-2.12-2.10-1.95-2.58-2.67
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