Switch to:
FMC Technologies Inc (NYSE:FTI)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

FTI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13   Max: -1.7
Current: -3.04

-3.13
-1.7

During the past 13 years, the highest Beneish M-Score of FMC Technologies Inc was -1.70. The lowest was -3.13. And the median was -2.35.


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 * 1.0728+0.528 * 1.1046+0.404 * 0.9627+0.892 * 0.7521+0.115 * 0.8824
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0714+4.679 * -0.0943-0.327 * 0.9473
=-3.04

* 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 $1,413 Mil.
Revenue was 1208.7 + 1427.3 + 1545 + 1695.2 = $5,876 Mil.
Gross Profit was 261.9 + 286 + 371.1 + 398.2 = $1,317 Mil.
Total Current Assets was $3,838 Mil.
Total Assets was $6,313 Mil.
Property, Plant and Equipment(Net PPE) was $1,341 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General & Admin. Expense(SGA) was $598 Mil.
Total Current Liabilities was $2,047 Mil.
Long-Term Debt was $1,218 Mil.
Net Income was 19.8 + 55.6 + 82 + 107.9 = $265 Mil.
Non Operating Income was -11.3 + 34.1 + -12.7 + -15.1 = $-5 Mil.
Cash Flow from Operations was 109 + 430.3 + 266.4 + 60.1 = $866 Mil.
Accounts Receivable was $1,752 Mil.
Revenue was 1695.2 + 2156.2 + 1976.7 + 1985.3 = $7,813 Mil.
Gross Profit was 412.6 + 547.3 + 497.1 + 477.7 = $1,935 Mil.
Total Current Assets was $4,243 Mil.
Total Assets was $6,971 Mil.
Property, Plant and Equipment(Net PPE) was $1,428 Mil.
Depreciation, Depletion and Amortization(DDA) was $236 Mil.
Selling, General & Admin. Expense(SGA) was $742 Mil.
Total Current Liabilities was $2,505 Mil.
Long-Term Debt was $1,302 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)
=(1413.3 / 5876.2) / (1751.7 / 7813.4)
=0.24051258 / 0.22419177
=1.0728

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)
=(1934.7 / 7813.4) / (1317.2 / 5876.2)
=0.24761307 / 0.22415847
=1.1046

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 - (3837.9 + 1340.9) / 6313.2) / (1 - (4242.5 + 1427.5) / 6971.2)
=0.17968701 / 0.18665366
=0.9627

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
=5876.2 / 7813.4
=0.7521

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))
=(236.2 / (236.2 + 1427.5)) / (257.1 / (257.1 + 1340.9))
=0.14197271 / 0.16088861
=0.8824

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)
=(597.7 / 5876.2) / (741.8 / 7813.4)
=0.10171539 / 0.09493946
=1.0714

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)
=((1218.4 + 2046.9) / 6313.2) / ((1301.6 + 2504.7) / 6971.2)
=0.51721789 / 0.54600356
=0.9473

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
=(265.3 - -5 - 865.8) / 6313.2
=-0.0943

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 -3.04 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.

FMC Technologies Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.07460.70941.30230.91181.34010.98381.09081.01070.92320.8935
GMI 0.85030.96691.02280.92510.86461.14731.03650.98240.8921.0603
AQI 0.94941.0331.241.09810.95310.88451.18480.94120.95370.9748
SGI 1.17481.21760.9860.9680.93651.23591.20641.15851.11460.8011
DEPI 1.14610.87561.22680.92840.96621.15851.17010.78170.97880.887
SGAI 0.94490.9050.78881.14411.18430.89881.0311.00480.96931.0449
LVGI 0.91351.06561.1170.87350.8531.04841.13230.99270.9520.9501
TATA 0.0495-0.09180.0309-0.06540.04940.0550.0455-0.0453-0.0311-0.0838
M-score -2.07-3.01-1.94-2.89-2.07-1.98-1.93-2.60-2.65-3.13

FMC Technologies Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.01071.04131.05041.04450.92320.73040.89920.84660.89351.0728
GMI 0.98240.95120.91850.87680.89190.9050.93960.98581.06041.1046
AQI 0.94120.93040.93260.91280.95371.02930.95770.99090.97480.9627
SGI 1.15851.14121.14641.13221.11461.06970.99230.90520.80110.7521
DEPI 0.78170.86730.9380.95520.97880.93920.9840.93050.8870.8824
SGAI 1.00480.98080.95080.95060.96930.98121.00031.04891.04491.0714
LVGI 0.99270.98460.92960.95680.9520.92720.97530.94360.95010.9473
TATA -0.0445-0.0512-0.0275-0.0282-0.0269-0.0429-0.0282-0.0471-0.0838-0.0943
M-score -2.59-2.62-2.48-2.54-2.63-2.88-2.75-2.94-3.13-3.04
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