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FMC Technologies Inc (NYSE:FTI)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

FTI' s 10-Year Beneish M-Score Range
Min: -3.03   Max: -1.7
Current: -2.54

-3.03
-1.7

During the past 13 years, the highest Beneish M-Score of FMC Technologies Inc was -1.70. The lowest was -3.03. And the median was -2.29.


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 * 1.0445+0.528 * 0.8769+0.404 * 0.9128+0.892 * 1.1322+0.115 * 0.9552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9506+4.679 * -0.029-0.327 * 0.9568
=-2.54

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $2,269 Mil.
Revenue was 1976.7 + 1985.3 + 1824.4 + 2047.8 = $7,834 Mil.
Gross Profit was 497.1 + 477.5 + 420.9 + 487.5 = $1,883 Mil.
Total Current Assets was $4,403 Mil.
Total Assets was $7,034 Mil.
Property, Plant and Equipment(Net PPE) was $1,447 Mil.
Depreciation, Depletion and Amortization(DDA) was $230 Mil.
Selling, General & Admin. Expense(SGA) was $728 Mil.
Total Current Liabilities was $2,698 Mil.
Long-Term Debt was $1,337 Mil.
Net Income was 169.8 + 226.3 + 135.2 + 177.8 = $709 Mil.
Non Operating Income was -27.8 + 84 + -1.1 + 4.3 = $59 Mil.
Cash Flow from Operations was 247.5 + 184 + 51.8 + 370.2 = $854 Mil.
Accounts Receivable was $1,919 Mil.
Revenue was 1724.5 + 1707.9 + 1646 + 1840.9 = $6,919 Mil.
Gross Profit was 370.7 + 357.8 + 338.8 + 391.1 = $1,458 Mil.
Total Current Assets was $3,915 Mil.
Total Assets was $6,425 Mil.
Property, Plant and Equipment(Net PPE) was $1,325 Mil.
Depreciation, Depletion and Amortization(DDA) was $200 Mil.
Selling, General & Admin. Expense(SGA) was $676 Mil.
Total Current Liabilities was $2,311 Mil.
Long-Term Debt was $1,541 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)
=(2268.8 / 7834.2) / (1918.5 / 6919.3)
=0.289602 / 0.27726793
=1.0445

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)
=(477.5 / 6919.3) / (497.1 / 7834.2)
=0.21077277 / 0.24035639
=0.8769

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 - (4403.4 + 1447) / 7034.4) / (1 - (3915.3 + 1324.9) / 6424.9)
=0.16831571 / 0.18439197
=0.9128

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
=7834.2 / 6919.3
=1.1322

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))
=(199.9 / (199.9 + 1324.9)) / (230.2 / (230.2 + 1447))
=0.13109916 / 0.13725256
=0.9552

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)
=(728 / 7834.2) / (676.4 / 6919.3)
=0.09292589 / 0.09775555
=0.9506

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)
=((1337 + 2698.1) / 7034.4) / ((1540.9 + 2310.8) / 6424.9)
=0.57362391 / 0.59949571
=0.9568

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
=(709.1 - 59.4 - 853.5) / 7034.4
=-0.029

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 -2.54 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.12320.86441.04440.70281.30230.91181.34010.98381.09081.0107
GMI 0.99871.04530.94980.96691.02280.92510.86461.14731.03650.9824
AQI 0.89050.81890.94941.0331.241.09810.95310.88451.18480.9412
SGI 1.09911.22531.20881.22890.9860.9680.93651.23591.20641.1585
DEPI 0.93391.03321.13540.87031.22680.92840.96621.15851.17010.7817
SGAI 0.95810.87840.94190.91210.78881.14411.18430.89881.0311.0048
LVGI 0.9361.02490.91351.06561.1170.87350.8531.04841.13230.9927
TATA -0.00160.05340.0493-0.09220.0373-0.06470.05080.05540.0455-0.0453
M-score -2.31-2.19-2.02-3.01-1.91-2.88-2.06-1.97-1.93-2.60

FMC Technologies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.01641.02511.09081.19960.96481.03051.01071.04131.05041.0445
GMI 1.0871.09391.03651.02821.0141.01120.98240.95120.91860.8769
AQI 1.09351.10081.18481.18490.98371.04090.94120.93040.93260.9128
SGI 1.29841.2361.20641.18231.16461.19071.15851.14121.14641.1322
DEPI 1.07751.09891.17011.0120.94540.87310.78170.86730.9380.9552
SGAI 0.87820.99641.0311.06631.08591.0011.00480.98080.95080.9506
LVGI 1.18441.13461.13231.12471.0241.00270.99270.98460.92960.9568
TATA 0.09610.06260.04550.0511-0.0158-0.0194-0.0453-0.052-0.0283-0.029
M-score -1.70-1.90-1.93-1.86-2.47-2.37-2.60-2.62-2.48-2.54
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