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FMC Technologies Inc (NYSE:FTI)
Beneish M-Score
-3.55 (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 -3.55 suggests that the company is not a manipulator.

FTI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.55   Max: -1.7
Current: -3.55

-3.55
-1.7

During the past 13 years, the highest Beneish M-Score of FMC Technologies Inc was -1.70. The lowest was -3.55. 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 * 0.5836+0.528 * 1.1309+0.404 * 1.0678+0.892 * 0.7086+0.115 * 0.8139
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1925+4.679 * -0.1059-0.327 * 0.9146
=-3.55

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $782 Mil.
Revenue was 1150.3 + 1208.7 + 1427.3 + 1545 = $5,331 Mil.
Gross Profit was 243.5 + 261.9 + 286 + 371.1 = $1,163 Mil.
Total Current Assets was $3,705 Mil.
Total Assets was $6,161 Mil.
Property, Plant and Equipment(Net PPE) was $1,329 Mil.
Depreciation, Depletion and Amortization(DDA) was $264 Mil.
Selling, General & Admin. Expense(SGA) was $607 Mil.
Total Current Liabilities was $1,788 Mil.
Long-Term Debt was $1,299 Mil.
Net Income was 2.2 + 19.8 + 55.6 + 82 = $160 Mil.
Non Operating Income was 0 + -11.3 + 34.1 + -12.7 = $10 Mil.
Cash Flow from Operations was -4 + 109 + 430.3 + 266.4 = $802 Mil.
Accounts Receivable was $1,892 Mil.
Revenue was 1695.2 + 1695.2 + 2156.2 + 1976.7 = $7,523 Mil.
Gross Profit was 398.2 + 412.6 + 547.3 + 497.1 = $1,855 Mil.
Total Current Assets was $4,232 Mil.
Total Assets was $6,894 Mil.
Property, Plant and Equipment(Net PPE) was $1,482 Mil.
Depreciation, Depletion and Amortization(DDA) was $231 Mil.
Selling, General & Admin. Expense(SGA) was $718 Mil.
Total Current Liabilities was $2,501 Mil.
Long-Term Debt was $1,275 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)
=(782.2 / 5331.3) / (1891.5 / 7523.3)
=0.14671844 / 0.25141893
=0.5836

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)
=(1855.2 / 7523.3) / (1162.5 / 5331.3)
=0.24659391 / 0.21805188
=1.1309

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 - (3705.2 + 1328.8) / 6160.8) / (1 - (4231.6 + 1481.5) / 6893.9)
=0.18289832 / 0.17128186
=1.0678

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
=5331.3 / 7523.3
=0.7086

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))
=(231.2 / (231.2 + 1481.5)) / (264.2 / (264.2 + 1328.8))
=0.13499153 / 0.1658506
=0.8139

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)
=(606.5 / 5331.3) / (717.7 / 7523.3)
=0.11376212 / 0.09539697
=1.1925

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)
=((1298.7 + 1787.7) / 6160.8) / ((1275.2 + 2501.1) / 6893.9)
=0.5009739 / 0.54777412
=0.9146

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
=(159.6 - 10.1 - 801.7) / 6160.8
=-0.1059

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 -3.55 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 1.04440.70281.30230.91181.34010.98381.09081.01070.92320.8935
GMI 0.94980.96691.02280.92510.86461.14731.03650.98240.88971.0629
AQI 0.94941.0331.241.09810.95310.88451.18480.94120.95370.9748
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 0.91351.06561.1170.87350.8531.04841.13230.99270.9520.9501
TATA 0.0503-0.09180.0309-0.06540.05080.05540.0455-0.0445-0.0269-0.0838
M-score -2.01-3.00-1.94-2.89-2.06-1.97-1.93-2.59-2.63-3.13

FMC Technologies Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.04131.05041.04450.92320.73040.89920.84660.89351.07280.5836
GMI 0.95120.91850.87680.89190.9050.93960.98581.06041.10461.1309
AQI 0.93040.93260.91280.95371.02930.95770.99090.97480.96271.0678
SGI 1.14121.14641.13221.11461.06970.99230.90520.80110.75210.7086
DEPI 0.86730.9380.95520.97880.93920.9840.93050.8870.88240.8139
SGAI 0.98080.95080.95060.96930.98121.00031.04891.04491.07141.1925
LVGI 0.98460.92960.95680.9520.92720.97530.94360.95010.94730.9146
TATA -0.0512-0.0275-0.0282-0.0269-0.0429-0.0304-0.0493-0.0861-0.0967-0.1059
M-score -2.62-2.48-2.54-2.63-2.88-2.76-2.95-3.14-3.06-3.55
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