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Corning Inc (NYSE:GLW)
Beneish M-Score
-2.65 (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 -2.65 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: -2.65

-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 -2.71.


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 * 1.0714+0.528 * 1.0742+0.404 * 0.9097+0.892 * 0.9328+0.115 * 1.0329
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5655+4.679 * -0.0156-0.327 * 1.0464
=-2.65

* 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 $1,544 Mil.
Revenue was 2360 + 2047 + 2231 + 2272 = $8,910 Mil.
Gross Profit was 951 + 764 + 857 + 892 = $3,464 Mil.
Total Current Assets was $10,747 Mil.
Total Assets was $30,653 Mil.
Property, Plant and Equipment(Net PPE) was $13,048 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,184 Mil.
Selling, General & Admin. Expense(SGA) was $1,672 Mil.
Total Current Liabilities was $2,448 Mil.
Long-Term Debt was $3,918 Mil.
Net Income was 2207 + -368 + 224 + 212 = $2,275 Mil.
Non Operating Income was 1490 + -814 + 116 + -142 = $650 Mil.
Cash Flow from Operations was 526 + -83 + 964 + 697 = $2,104 Mil.
Accounts Receivable was $1,545 Mil.
Revenue was 2343 + 2265 + 2404 + 2540 = $9,552 Mil.
Gross Profit was 975 + 929 + 996 + 1089 = $3,989 Mil.
Total Current Assets was $9,868 Mil.
Total Assets was $29,888 Mil.
Property, Plant and Equipment(Net PPE) was $12,669 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,191 Mil.
Selling, General & Admin. Expense(SGA) was $1,145 Mil.
Total Current Liabilities was $2,022 Mil.
Long-Term Debt was $3,910 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)
=(1544 / 8910) / (1545 / 9552)
=0.17328844 / 0.16174623
=1.0714

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)
=(3989 / 9552) / (3464 / 8910)
=0.41760888 / 0.38877666
=1.0742

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 - (10747 + 13048) / 30653) / (1 - (9868 + 12669) / 29888)
=0.22373014 / 0.24595155
=0.9097

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
=8910 / 9552
=0.9328

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))
=(1191 / (1191 + 12669)) / (1184 / (1184 + 13048))
=0.08593074 / 0.0831928
=1.0329

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)
=(1672 / 8910) / (1145 / 9552)
=0.18765432 / 0.11987018
=1.5655

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)
=((3918 + 2448) / 30653) / ((3910 + 2022) / 29888)
=0.20767951 / 0.1984743
=1.0464

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
=(2275 - 650 - 2104) / 30653
=-0.0156

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 -2.65 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 0.9820.94061.01911.18650.84381.01441.09410.97441.01931.0403
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 1.00320.93960.97331.10250.91640.85131.15430.95750.86561.341
LVGI 0.82810.8610.70240.87651.00940.97421.13440.96971.04791.2756
TATA -0.0016-0.00490.1637-0.0787-0.0936-0.0704-0.0838-0.0716-0.1321-0.0614
M-score -2.29-2.30-1.83-2.22-2.79-2.66-2.71-2.81-3.02-2.92

Corning Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.21781.15180.9940.96410.80140.86470.92210.97471.01721.0714
GMI 0.98171.01171.01371.01931.00760.99061.01081.04031.06451.0742
AQI 0.69640.65370.67840.68331.12841.13841.08161.13831.130.9097
SGI 1.04911.1021.15711.24251.16841.08621.00180.93780.91770.9328
DEPI 1.24721.23981.1431.07950.84480.87250.94411.00381.01291.0329
SGAI 1.01161.02290.99160.86560.76510.79860.90341.3411.45621.5655
LVGI 1.09691.16611.17611.04790.96741.09341.13081.27561.34251.0464
TATA -0.1115-0.1204-0.1439-0.1321-0.0904-0.0811-0.064-0.0614-0.0331-0.0156
M-score -2.90-2.98-3.18-3.02-2.85-2.87-2.84-2.92-2.79-2.65
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