Switch to:
Corning Inc (NYSE:GLW)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

GLW' s Beneish M-Score Range Over the Past 10 Years
Min: -5.77   Max: -1.45
Current: -2.79

-5.77
-1.45

During the past 13 years, the highest Beneish M-Score of Corning Inc was -1.45. The lowest was -5.77. And the median was -2.72.


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 * 1.0172+0.528 * 1.0645+0.404 * 1.13+0.892 * 0.9177+0.115 * 1.0129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4562+4.679 * -0.0331-0.327 * 1.3425
=-2.79

* 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 $1,388 Mil.
Revenue was 2047 + 2231 + 2272 + 2343 = $8,893 Mil.
Gross Profit was 764 + 857 + 892 + 975 = $3,488 Mil.
Total Current Assets was $7,178 Mil.
Total Assets was $27,945 Mil.
Property, Plant and Equipment(Net PPE) was $12,823 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,188 Mil.
Selling, General & Admin. Expense(SGA) was $1,510 Mil.
Total Current Liabilities was $2,564 Mil.
Long-Term Debt was $3,910 Mil.
Net Income was -368 + 224 + 212 + 496 = $564 Mil.
Non Operating Income was -814 + 116 + -142 + 203 = $-637 Mil.
Cash Flow from Operations was -83 + 964 + 697 + 547 = $2,125 Mil.
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 $1,130 Mil.
Total Current Liabilities was $1,895 Mil.
Long-Term Debt was $3,165 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)
=(1388 / 8893) / (1487 / 9691)
=0.15607781 / 0.15344134
=1.0172

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)
=(857 / 9691) / (764 / 8893)
=0.41750077 / 0.3922186
=1.0645

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 - (7178 + 12823) / 27945) / (1 - (9238 + 12708) / 29323)
=0.28427268 / 0.25157726
=1.13

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
=8893 / 9691
=0.9177

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))
=(1194 / (1194 + 12708)) / (1188 / (1188 + 12823))
=0.08588692 / 0.08479052
=1.0129

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)
=(1510 / 8893) / (1130 / 9691)
=0.16979647 / 0.11660303
=1.4562

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)
=((3910 + 2564) / 27945) / ((3165 + 1895) / 29323)
=0.23166935 / 0.17256079
=1.3425

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
=(564 - -637 - 2125) / 27945
=-0.0331

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 -2.79 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04961.01310.58931.62151.05120.93471.1850.98610.96410.9747
GMI 0.9820.94061.01911.18650.84381.01721.0660.99731.01931.0403
AQI 0.98681.09921.29271.09260.8510.98181.00991.11480.68331.1383
SGI 1.12991.13261.0150.9071.22931.18971.01550.97591.24250.9378
DEPI 0.9661.10981.17820.8671.0341.05920.95940.92491.07951.0038
SGAI 1.00320.93960.97331.0780.98250.81611.11060.99040.86561.341
LVGI 0.82810.8610.70240.87651.00940.97421.13440.96971.04791.2756
TATA -0.0016-0.00490.1637-0.0787-0.0936-0.0708-0.0807-0.0716-0.1321-0.0614
M-score -2.29-2.30-1.83-2.21-2.81-2.65-2.70-2.80-3.02-2.92

Corning Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.98611.21781.15180.9940.96410.80140.86470.92210.97471.0172
GMI 0.97440.98171.01171.01371.01931.00760.99061.01081.04031.0645
AQI 1.11480.69640.65370.67840.68331.12841.13841.08161.13831.13
SGI 0.97591.04911.1021.15711.24251.16841.08621.00180.93780.9177
DEPI 0.92491.24721.23981.1431.07950.84480.87250.94411.00381.0129
SGAI 0.95751.01161.02290.99160.86560.76510.79860.90341.3411.4562
LVGI 0.96971.09691.16611.17611.04790.96741.09341.13081.27561.3425
TATA -0.0716-0.1115-0.1204-0.1439-0.1321-0.0904-0.0811-0.064-0.0614-0.0331
M-score -2.81-2.90-2.98-3.18-3.02-2.85-2.87-2.84-2.92-2.79
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