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Corning Inc (NYSE:GLW)
Beneish M-Score
-3.18 (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.

Corning Inc has a M-score of -3.18 suggests that the company is not a manipulator.

GLW' s 10-Year Beneish M-Score Range
Min: -5.8   Max: -1.39
Current: -3.18

-5.8
-1.39

During the past 13 years, the highest Beneish M-Score of Corning Inc was -1.39. The lowest was -5.80. And the median was -2.67.


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 Corning 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 * 0.994+0.528 * 1.0137+0.404 * 0.6784+0.892 * 1.1571+0.115 * 1.143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9833+4.679 * -0.1439-0.327 * 1.1761
=-3.18

* 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 $1,601 Mil.
Revenue was 2540 + 2482 + 2289 + 1956 = $9,267 Mil.
Gross Profit was 1089 + 1032 + 935 + 770 = $3,826 Mil.
Total Current Assets was $10,013 Mil.
Total Assets was $29,815 Mil.
Property, Plant and Equipment(Net PPE) was $13,033 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,151 Mil.
Selling, General & Admin. Expense(SGA) was $1,305 Mil.
Total Current Liabilities was $2,138 Mil.
Long-Term Debt was $3,228 Mil.
Net Income was 1014 + 169 + 301 + 421 = $1,905 Mil.
Non Operating Income was 815 + -93 + 184 + 408 = $1,314 Mil.
Cash Flow from Operations was 1117 + 743 + 1737 + 1284 = $4,881 Mil.
Accounts Receivable was $1,392 Mil.
Revenue was 2067 + 1982 + 1814 + 2146 = $8,009 Mil.
Gross Profit was 901 + 883 + 770 + 798 = $3,352 Mil.
Total Current Assets was $9,128 Mil.
Total Assets was $28,714 Mil.
Property, Plant and Equipment(Net PPE) was $9,977 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,020 Mil.
Selling, General & Admin. Expense(SGA) was $1,147 Mil.
Total Current Liabilities was $1,578 Mil.
Long-Term Debt was $2,816 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)
=(1601 / 9267) / (1392 / 8009)
=0.17276357 / 0.17380447
=0.994

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)
=(1032 / 8009) / (1089 / 9267)
=0.41852915 / 0.41286285
=1.0137

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 - (10013 + 13033) / 29815) / (1 - (9128 + 9977) / 28714)
=0.22703337 / 0.33464512
=0.6784

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
=9267 / 8009
=1.1571

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))
=(1020 / (1020 + 9977)) / (1151 / (1151 + 13033))
=0.09275257 / 0.08114777
=1.143

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)
=(1305 / 9267) / (1147 / 8009)
=0.14082227 / 0.14321388
=0.9833

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)
=((3228 + 2138) / 29815) / ((2816 + 1578) / 28714)
=0.17997652 / 0.1530264
=1.1761

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
=(1905 - 1314 - 4881) / 29815
=-0.1439

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.

Corning Inc has a M-score of -3.18 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.

Corning Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.89340.9051.04961.01310.58931.62151.05120.93471.1850.9861
GMI 0.74830.84740.9820.94061.01911.18650.84381.01721.0910.9744
AQI 0.62030.93120.98681.09921.29271.09260.8510.98181.00991.1148
SGI 1.24721.18811.12991.13261.0150.9071.22931.18971.01550.9759
DEPI 1.06671.18690.9661.10981.17820.8671.0341.05920.95940.9249
SGAI 0.8740.97441.00320.93960.97331.10250.91640.85551.14870.9575
LVGI 1.19410.79160.82810.8610.70240.87651.00940.97421.13440.9697
TATA -0.1877-0.1619-0.0716-0.00490.1637-0.0787-0.0936-0.0708-0.0838-0.0716
M-score -3.56-3.17-2.62-2.30-1.83-2.22-2.79-2.66-2.71-2.81

Corning Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.86541.05171.1851.11911.09351.07970.98611.21781.15180.994
GMI 1.01161.04641.0911.07951.05351.03120.97440.98171.01171.0137
AQI 0.95480.98181.00991.09691.10181.11111.11480.69640.65370.6784
SGI 1.06790.99811.01551.00241.02441.0330.97591.04911.1021.1571
DEPI 1.01991.02540.95940.94320.89370.87680.92491.24721.23981.143
SGAI 0.92771.09591.14871.12511.08050.98170.95751.011.01830.9833
LVGI 1.14421.1741.13440.94240.8740.85580.96971.09691.16611.1761
TATA -0.082-0.0766-0.0838-0.0803-0.0745-0.0692-0.0716-0.1115-0.1204-0.1439
M-score -2.97-2.85-2.71-2.67-2.64-2.60-2.81-2.89-2.98-3.18
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