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Expeditors International of Washington Inc (NAS:EXPD)
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.

Expeditors International of Washington Inc has a M-score of -2.99 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: -2.99

-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 -2.54.


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 * 1.0662+0.528 * 0.8993+0.404 * 0.6017+0.892 * 0.8914+0.115 * 1.0157
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1376+4.679 * -0.0517-0.327 * 0.9757
=-2.99

* 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 $1,109 Mil.
Revenue was 1562.394 + 1475.164 + 1418.472 + 1596.221 = $6,052 Mil.
Gross Profit was 545.259 + 553.117 + 517.069 + 536.169 = $2,152 Mil.
Total Current Assets was $2,236 Mil.
Total Assets was $2,814 Mil.
Property, Plant and Equipment(Net PPE) was $540 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $1,299 Mil.
Total Current Liabilities was $928 Mil.
Long-Term Debt was $0 Mil.
Net Income was 107.581 + 116.052 + 96.584 + 114.449 = $435 Mil.
Non Operating Income was 0.925 + 1.603 + 0.879 + 4.031 = $7 Mil.
Cash Flow from Operations was 115.686 + 105.052 + 235.953 + 115.914 = $573 Mil.
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.



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)
=(1108.516 / 6052.251) / (1166.3 / 6789.241)
=0.18315764 / 0.17178651
=1.0662

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)
=(2170.479 / 6789.241) / (2151.614 / 6052.251)
=0.31969391 / 0.35550641
=0.8993

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 - (2235.686 + 539.984) / 2813.797) / (1 - (2235.46 + 527.893) / 2827.018)
=0.01355002 / 0.0225202
=0.6017

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
=6052.251 / 6789.241
=0.8914

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))
=(46.176 / (46.176 + 527.893)) / (46.441 / (46.441 + 539.984))
=0.08043632 / 0.07919342
=1.0157

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)
=(1299.147 / 6052.251) / (1281.105 / 6789.241)
=0.21465518 / 0.18869635
=1.1376

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 + 927.604) / 2813.797) / ((0 + 955.202) / 2827.018)
=0.32966273 / 0.33788324
=0.9757

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
=(434.666 - 7.438 - 572.605) / 2813.797
=-0.0517

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 -2.99 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 local exchange's currency.

Expeditors International of Washington Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96331.01830.78461.41550.84950.90181.13451.02581.06640.8928
GMI 0.97821.00491.02070.84221.19120.91631.01070.98911.0260.9128
AQI 0.88651.02790.92751.05780.8670.95690.95120.88651.80791.139
SGI 1.18771.12971.07620.72641.45831.03250.97251.01471.07971.0079
DEPI 1.16521.00040.97281.00631.12261.07840.95370.85170.93781.0404
SGAI 0.990.99781.09481.23070.78651.08791.02891.01740.95961.0594
LVGI 0.9950.9560.85770.95541.05540.86321.0271.0121.1790.9802
TATA -0.0554-0.0229-0.054-0.0425-0.0231-0.0282-0.0148-0.0225-0.0081-0.0435
M-score -2.64-2.43-2.85-2.62-2.24-2.70-2.48-2.62-2.10-2.76

Expeditors International of Washington Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.08241.07561.06641.0760.94870.93240.89280.8560.9811.0662
GMI 1.01251.03421.0261.01740.98980.94530.91280.88590.87160.8993
AQI 1.72641.73731.80791.80720.97161.05071.1391.14570.69670.6017
SGI 1.04381.07051.07971.09611.09411.05721.00790.94180.89740.8914
DEPI 0.8940.90520.93780.96851.0131.04471.04041.04881.03631.0157
SGAI 0.99150.96750.95960.95650.97371.01471.05941.11671.1541.1376
LVGI 1.16961.18011.1791.07951.03181.02690.98020.95850.97460.9757
TATA -0.0108-0.0045-0.00810.0131-0.0247-0.0344-0.0435-0.0839-0.0545-0.0517
M-score -2.18-2.12-2.10-1.95-2.58-2.67-2.76-3.06-3.05-2.99
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