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Expeditors International of Washington Inc (NAS:EXPD)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

EXPD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.6   Max: -1.79
Current: -2.76

-4.6
-1.79

During the past 13 years, the highest Beneish M-Score of Expeditors International of Washington Inc was -1.79. The lowest was -4.60. And the median was -2.60.


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 * 0.8928+0.528 * 0.9128+0.404 * 1.139+0.892 * 1.0079+0.115 * 1.0404
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0594+4.679 * -0.0435-0.327 * 0.9802
=-2.76

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,112 Mil.
Revenue was 1596.221 + 1651.332 + 1691.553 + 1677.526 = $6,617 Mil.
Gross Profit was 536.169 + 569.981 + 552.141 + 529.486 = $2,188 Mil.
Total Current Assets was $1,993 Mil.
Total Assets was $2,582 Mil.
Property, Plant and Equipment(Net PPE) was $525 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $1,288 Mil.
Total Current Liabilities was $861 Mil.
Long-Term Debt was $0 Mil.
Net Income was 114.449 + 118.31 + 117.76 + 106.704 = $457 Mil.
Non Operating Income was 4.031 + -3.085 + 3.804 + 0.034 = $5 Mil.
Cash Flow from Operations was 115.914 + 132.676 + 181.728 + 134.394 = $565 Mil.
Accounts Receivable was $1,236 Mil.
Revenue was 1768.83 + 1705.105 + 1599.141 + 1491.645 = $6,565 Mil.
Gross Profit was 518.871 + 513.256 + 484.714 + 464.586 = $1,981 Mil.
Total Current Assets was $2,289 Mil.
Total Assets was $2,891 Mil.
Property, Plant and Equipment(Net PPE) was $538 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General & Admin. Expense(SGA) was $1,206 Mil.
Total Current Liabilities was $984 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)
=(1112.26 / 6616.632) / (1236.042 / 6564.721)
=0.16810063 / 0.18828553
=0.8928

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)
=(569.981 / 6564.721) / (536.169 / 6616.632)
=0.30182958 / 0.33064813
=0.9128

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 - (1993.37 + 524.724) / 2582.438) / (1 - (2289.25 + 538.415) / 2890.905)
=0.02491599 / 0.0218755
=1.139

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
=6616.632 / 6564.721
=1.0079

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))
=(49.292 / (49.292 + 538.415)) / (46.012 / (46.012 + 524.724))
=0.08387173 / 0.08061871
=1.0404

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)
=(1287.971 / 6616.632) / (1206.264 / 6564.721)
=0.19465659 / 0.18374947
=1.0594

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 + 861.373) / 2582.438) / ((0 + 983.783) / 2890.905)
=0.33355031 / 0.34030278
=0.9802

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
=(457.223 - 4.784 - 564.712) / 2582.438
=-0.0435

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 -2.76 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.00571.02581.05331.08241.07561.06641.0760.94870.93240.8928
GMI 0.99440.98910.99361.01251.03421.0261.01740.98980.94530.9128
AQI 0.92180.88650.88211.72641.73731.80791.80720.97161.05071.139
SGI 1.00631.01471.02751.04381.07051.07971.09611.09411.05721.0079
DEPI 0.85550.85170.87170.8940.90520.93780.96851.0131.04471.0404
SGAI 1.0171.01741.00940.99150.96750.95960.95650.97371.01471.0594
LVGI 0.97611.0121.11811.16961.18011.1791.07951.03181.02690.9802
TATA -0.0213-0.0225-0.0243-0.0108-0.0045-0.00810.0131-0.0247-0.0344-0.0435
M-score -2.62-2.62-2.63-2.18-2.12-2.10-1.95-2.58-2.67-2.76
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