Switch to:
FMC Technologies Inc (NYSE:FTI)
Beneish M-Score
-3.45 (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.

FMC Technologies Inc has a M-score of -3.45 suggests that the company is not a manipulator.

FTI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: -1.7
Current: -3.45

-3.53
-1.7

During the past 13 years, the highest Beneish M-Score of FMC Technologies Inc was -1.70. The lowest was -3.53. And the median was -2.36.


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 FMC Technologies 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 * 0.5695+0.528 * 1.1481+0.404 * 1.158+0.892 * 0.6878+0.115 * 0.9196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2518+4.679 * -0.0901-0.327 * 0.8956
=-3.45

* 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 $681 Mil.
Revenue was 1091.2 + 1150.3 + 1208.7 + 1427.3 = $4,878 Mil.
Gross Profit was 244.5 + 243.5 + 261.9 + 286 = $1,036 Mil.
Total Current Assets was $3,502 Mil.
Total Assets was $5,964 Mil.
Property, Plant and Equipment(Net PPE) was $1,310 Mil.
Depreciation, Depletion and Amortization(DDA) was $250 Mil.
Selling, General & Admin. Expense(SGA) was $595 Mil.
Total Current Liabilities was $1,646 Mil.
Long-Term Debt was $1,245 Mil.
Net Income was 32.3 + 2.2 + 19.8 + 55.6 = $110 Mil.
Non Operating Income was 0 + 0 + -11.3 + 0 = $-11 Mil.
Cash Flow from Operations was 122.3 + -4 + 109 + 431.4 = $659 Mil.
Accounts Receivable was $1,739 Mil.
Revenue was 1545 + 1695.2 + 1695.2 + 2156.2 = $7,092 Mil.
Gross Profit was 371.1 + 398.2 + 412.6 + 547.3 = $1,729 Mil.
Total Current Assets was $4,196 Mil.
Total Assets was $6,711 Mil.
Property, Plant and Equipment(Net PPE) was $1,396 Mil.
Depreciation, Depletion and Amortization(DDA) was $242 Mil.
Selling, General & Admin. Expense(SGA) was $691 Mil.
Total Current Liabilities was $2,371 Mil.
Long-Term Debt was $1,261 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)
=(681 / 4877.5) / (1738.6 / 7091.6)
=0.13962071 / 0.24516329
=0.5695

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)
=(1729.2 / 7091.6) / (1035.9 / 4877.5)
=0.24383778 / 0.21238339
=1.1481

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 - (3502.3 + 1309.6) / 5963.7) / (1 - (4195.6 + 1396.3) / 6711.2)
=0.19313513 / 0.1667809
=1.158

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
=4877.5 / 7091.6
=0.6878

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))
=(241.6 / (241.6 + 1396.3)) / (250.2 / (250.2 + 1309.6))
=0.14750595 / 0.16040518
=0.9196

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)
=(595.1 / 4877.5) / (691.2 / 7091.6)
=0.12200923 / 0.09746743
=1.2518

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)
=((1245.1 + 1646) / 5963.7) / ((1261.2 + 2371.4) / 6711.2)
=0.48478294 / 0.54127429
=0.8956

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
=(109.9 - -11.3 - 658.7) / 5963.7
=-0.0901

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.

FMC Technologies Inc has a M-score of -3.45 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.

FMC Technologies Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04440.70281.30230.91181.34010.98381.09081.01070.92320.5188
GMI 0.94980.96691.02280.92510.86461.14731.03650.98240.88971.0629
AQI 0.94941.0331.241.09810.95310.88451.18480.94120.95370.9777
SGI 1.20881.22890.9860.9680.93651.23591.20641.15851.11460.8011
DEPI 1.13540.87031.22680.92840.96621.15851.17010.78170.97880.887
SGAI 0.94190.91210.78881.14411.18430.89881.0311.00480.96931.0449
LVGI 0.91351.06561.1170.87350.8531.04841.13230.99270.9520.9425
TATA 0.0503-0.09180.0309-0.06540.05080.05540.0455-0.0445-0.0269-0.084
M-score -2.01-3.00-1.94-2.89-2.06-1.97-1.93-2.59-2.63-3.47

FMC Technologies Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.05041.04450.92320.73040.89920.84660.51881.07280.58360.5695
GMI 0.91850.87680.89190.9050.93960.98581.06041.10461.13091.1481
AQI 0.93260.91280.95371.02930.95770.99090.97770.96271.06781.158
SGI 1.14641.13221.11461.06970.99230.90520.80110.75210.70860.6878
DEPI 0.9380.95520.97880.93920.9840.93050.8870.88240.81390.9196
SGAI 0.95080.95060.96930.98121.00031.04891.04491.07141.19251.2518
LVGI 0.92960.95680.9520.92720.97530.94360.94250.94730.91460.8956
TATA -0.0275-0.0282-0.0269-0.0429-0.0304-0.0511-0.083-0.0933-0.1024-0.0901
M-score -2.48-2.54-2.63-2.88-2.76-2.95-3.47-3.04-3.53-3.45
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK