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Corning Inc (NYSE:GLW)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

GLW' s 10-Year Beneish M-Score Range
Min: -5.8   Max: -1.39
Current: -2.87

-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 * 0.8647+0.528 * 0.9906+0.404 * 1.1384+0.892 * 1.0862+0.115 * 0.8725
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8028+4.679 * -0.0811-0.327 * 1.0934
=-2.87

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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 $1,151 Mil.
Total Current Liabilities was $2,022 Mil.
Long-Term Debt was $3,910 Mil.
Net Income was 496 + 407 + 988 + 1014 = $2,905 Mil.
Non Operating Income was 203 + 106 + 828 + 815 = $1,952 Mil.
Cash Flow from Operations was 547 + 601 + 1112 + 1117 = $3,377 Mil.
Accounts Receivable was $1,645 Mil.
Revenue was 2482 + 2289 + 1956 + 2067 = $8,794 Mil.
Gross Profit was 1032 + 935 + 770 + 901 = $3,638 Mil.
Total Current Assets was $9,864 Mil.
Total Assets was $29,832 Mil.
Property, Plant and Equipment(Net PPE) was $13,523 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,096 Mil.
Selling, General & Admin. Expense(SGA) was $1,320 Mil.
Total Current Liabilities was $2,177 Mil.
Long-Term Debt was $3,238 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)
=(1545 / 9552) / (1645 / 8794)
=0.16174623 / 0.18705936
=0.8647

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)
=(929 / 8794) / (975 / 9552)
=0.41369115 / 0.41760888
=0.9906

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 - (9868 + 12669) / 29888) / (1 - (9864 + 13523) / 29832)
=0.24595155 / 0.21604318
=1.1384

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
=9552 / 8794
=1.0862

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))
=(1096 / (1096 + 13523)) / (1191 / (1191 + 12669))
=0.07497093 / 0.08593074
=0.8725

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)
=(1151 / 9552) / (1320 / 8794)
=0.12049832 / 0.15010234
=0.8028

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 + 2022) / 29888) / ((3238 + 2177) / 29832)
=0.1984743 / 0.18151649
=1.0934

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
=(2905 - 1952 - 3377) / 29888
=-0.0811

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 -2.87 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.11911.09351.07970.98611.21781.15180.9940.96410.80140.8647
GMI 1.07951.05351.03120.97440.98171.01171.01371.01931.00760.9906
AQI 1.09691.10181.11111.11480.69640.65370.67840.68331.12841.1384
SGI 1.00241.02441.0330.97591.04911.1021.15711.24251.16841.0862
DEPI 0.94320.89370.87680.92491.24721.23981.1431.07950.84480.8725
SGAI 1.12511.08050.98170.95751.01161.02290.98780.86990.76920.8028
LVGI 0.94240.8740.85580.96971.09691.16611.17611.04790.96741.0934
TATA -0.0803-0.0745-0.0692-0.0716-0.1115-0.1204-0.1439-0.1321-0.0904-0.0811
M-score -2.67-2.64-2.60-2.81-2.90-2.98-3.18-3.02-2.85-2.87
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