Switch to:
Corning Inc (NYSE:GLW)
Beneish M-Score
-2.49 (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 -2.49 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: -2.49

-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 * 1.1291+0.528 * 1.0338+0.404 * 0.9947+0.892 * 0.985+0.115 * 1.0444
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4209+4.679 * -0.009-0.327 * 1.0592
=-2.49

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,645 Mil.
Revenue was 2507 + 2360 + 2047 + 2231 = $9,145 Mil.
Gross Profit was 1041 + 951 + 764 + 857 = $3,613 Mil.
Total Current Assets was $8,479 Mil.
Total Assets was $28,809 Mil.
Property, Plant and Equipment(Net PPE) was $13,293 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,192 Mil.
Selling, General & Admin. Expense(SGA) was $1,667 Mil.
Total Current Liabilities was $2,294 Mil.
Long-Term Debt was $3,916 Mil.
Net Income was 284 + 2207 + -368 + 224 = $2,347 Mil.
Non Operating Income was -246 + 1490 + -814 + 116 = $546 Mil.
Cash Flow from Operations was 652 + 526 + -83 + 964 = $2,059 Mil.
Accounts Receivable was $1,479 Mil.
Revenue was 2272 + 2343 + 2265 + 2404 = $9,284 Mil.
Gross Profit was 892 + 975 + 929 + 996 = $3,792 Mil.
Total Current Assets was $9,253 Mil.
Total Assets was $28,898 Mil.
Property, Plant and Equipment(Net PPE) was $12,549 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,180 Mil.
Selling, General & Admin. Expense(SGA) was $1,191 Mil.
Total Current Liabilities was $1,966 Mil.
Long-Term Debt was $3,915 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)
=(1645 / 9145) / (1479 / 9284)
=0.17987972 / 0.15930633
=1.1291

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)
=(3792 / 9284) / (3613 / 9145)
=0.40844464 / 0.39507928
=1.0338

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 - (8479 + 13293) / 28809) / (1 - (9253 + 12549) / 28898)
=0.24426395 / 0.24555333
=0.9947

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
=9145 / 9284
=0.985

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))
=(1180 / (1180 + 12549)) / (1192 / (1192 + 13293))
=0.08594945 / 0.08229203
=1.0444

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)
=(1667 / 9145) / (1191 / 9284)
=0.1822854 / 0.12828522
=1.4209

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)
=((3916 + 2294) / 28809) / ((3915 + 1966) / 28898)
=0.21555764 / 0.20350889
=1.0592

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
=(2347 - 546 - 2059) / 28809
=-0.009

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 -2.49 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 local exchange's 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 0.98681.09921.29271.09260.8510.98181.00991.11480.68331.1361
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 0.82810.8610.70240.87651.00940.97421.13440.96971.04791.2727
TATA -0.0016-0.00490.1637-0.0787-0.0936-0.0704-0.0838-0.0716-0.1321-0.0615
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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.15180.9940.96410.80140.86470.92210.97471.01721.07141.1291
GMI 1.01171.01371.01931.00760.99061.01081.04031.06451.07421.0338
AQI 0.65370.67840.68331.12841.13841.08161.13611.130.90970.9947
SGI 1.1021.15711.24251.16841.08621.00180.93780.91770.93280.985
DEPI 1.23981.1431.07950.84480.87250.94411.00381.01291.03291.0444
SGAI 1.02290.99160.86560.76510.79860.90341.3411.45621.56551.4209
LVGI 1.16611.17611.04790.96741.09341.13081.27271.34251.04641.0592
TATA -0.1204-0.1439-0.1321-0.0904-0.0811-0.064-0.0615-0.0331-0.0156-0.009
M-score -2.98-3.18-3.02-2.85-2.87-2.84-2.92-2.79-2.65-2.49
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