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Corning Inc (NYSE:GLW)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

GLW' s 10-Year Beneish M-Score Range
Min: -5.8   Max: -1.39
Current: -2.85

-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 -2.68.


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 * 0.8014+0.528 * 1.0076+0.404 * 1.1284+0.892 * 1.1684+0.115 * 0.8448
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7665+4.679 * -0.0904-0.327 * 0.9674
=-2.85

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,487 Mil.
Revenue was 2265 + 2404 + 2540 + 2482 = $9,691 Mil.
Gross Profit was 929 + 996 + 1089 + 1032 = $4,046 Mil.
Total Current Assets was $9,238 Mil.
Total Assets was $29,323 Mil.
Property, Plant and Equipment(Net PPE) was $12,708 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,194 Mil.
Selling, General & Admin. Expense(SGA) was $1,132 Mil.
Total Current Liabilities was $1,895 Mil.
Long-Term Debt was $3,165 Mil.
Net Income was 407 + 988 + 1014 + 169 = $2,578 Mil.
Non Operating Income was 106 + 828 + 815 + -93 = $1,656 Mil.
Cash Flow from Operations was 601 + 1112 + 1117 + 743 = $3,573 Mil.
Accounts Receivable was $1,588 Mil.
Revenue was 2289 + 1956 + 2067 + 1982 = $8,294 Mil.
Gross Profit was 935 + 770 + 901 + 883 = $3,489 Mil.
Total Current Assets was $9,613 Mil.
Total Assets was $29,544 Mil.
Property, Plant and Equipment(Net PPE) was $13,344 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,044 Mil.
Selling, General & Admin. Expense(SGA) was $1,264 Mil.
Total Current Liabilities was $2,046 Mil.
Long-Term Debt was $3,224 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)
=(1487 / 9691) / (1588 / 8294)
=0.15344134 / 0.19146371
=0.8014

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)
=(996 / 8294) / (929 / 9691)
=0.42066554 / 0.41750077
=1.0076

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 - (9238 + 12708) / 29323) / (1 - (9613 + 13344) / 29544)
=0.25157726 / 0.22295559
=1.1284

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
=9691 / 8294
=1.1684

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))
=(1044 / (1044 + 13344)) / (1194 / (1194 + 12708))
=0.07256047 / 0.08588692
=0.8448

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)
=(1132 / 9691) / (1264 / 8294)
=0.11680941 / 0.15239932
=0.7665

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)
=((3165 + 1895) / 29323) / ((3224 + 2046) / 29544)
=0.17256079 / 0.17837801
=0.9674

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
=(2578 - 1656 - 3573) / 29323
=-0.0904

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 -2.85 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.9051.04961.01310.58931.62151.05120.93471.1850.98610.9641
GMI 0.84740.9820.94061.01911.18650.84381.01721.0910.97441.0193
AQI 0.93120.98681.09921.29271.09260.8510.98181.00991.11480.6833
SGI 1.18811.12991.13261.0150.9071.22931.18971.01550.97591.2425
DEPI 1.18690.9661.10981.17820.8671.0341.05920.95940.92491.0795
SGAI 0.97441.00320.93960.97331.10250.91640.85551.14870.95750.8656
LVGI 0.79160.82810.8610.70240.87651.00940.97421.13440.96971.0479
TATA -0.1619-0.0716-0.00490.1637-0.0787-0.0936-0.0708-0.0838-0.0716-0.1321
M-score -3.17-2.62-2.30-1.83-2.22-2.79-2.66-2.71-2.81-3.02

Corning Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.1851.11911.09351.07970.98611.21781.15180.9940.96410.8014
GMI 1.0911.07951.05351.03120.97440.98171.01171.01371.01931.0076
AQI 1.00991.09691.10181.11111.11480.69640.65370.67840.68331.1284
SGI 1.01551.00241.02441.0330.97591.04911.1021.15711.24251.1684
DEPI 0.95940.94320.89370.87680.92491.24721.23981.1431.07950.8448
SGAI 1.14871.12511.08050.98170.95751.01161.01980.98480.8670.7665
LVGI 1.13440.94240.8740.85580.96971.09691.16611.17611.04790.9674
TATA -0.0838-0.0803-0.0745-0.0692-0.0716-0.1115-0.1204-0.1439-0.1321-0.0904
M-score -2.71-2.67-2.64-2.60-2.81-2.90-2.98-3.18-3.02-2.85
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