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Huntsman Corp (NYSE:HUN)
Beneish M-Score
-2.94 (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.

Huntsman Corp has a M-score of -2.94 suggests that the company is not a manipulator.

HUN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.16   Max: 89.33
Current: -2.94

-4.16
89.33

During the past 13 years, the highest Beneish M-Score of Huntsman Corp was 89.33. The lowest was -4.16. And the median was -2.65.


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 Huntsman Corp 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 * 1.0223+0.528 * 1.0249+0.404 * 1.0683+0.892 * 0.8787+0.115 * 0.9469
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0607+4.679 * -0.0864-0.327 * 0.973
=-2.94

* 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 $1,466 Mil.
Revenue was 2363 + 2544 + 2355 + 2332 = $9,594 Mil.
Gross Profit was 398 + 457 + 416 + 376 = $1,647 Mil.
Total Current Assets was $3,783 Mil.
Total Assets was $9,707 Mil.
Property, Plant and Equipment(Net PPE) was $4,298 Mil.
Depreciation, Depletion and Amortization(DDA) was $424 Mil.
Selling, General & Admin. Expense(SGA) was $933 Mil.
Total Current Liabilities was $1,789 Mil.
Long-Term Debt was $4,468 Mil.
Net Income was 55 + 87 + 56 + 4 = $202 Mil.
Non Operating Income was -2 + 1 + 2 + 4 = $5 Mil.
Cash Flow from Operations was 405 + 355 + 88 + 188 = $1,036 Mil.
Accounts Receivable was $1,632 Mil.
Revenue was 2638 + 2740 + 2589 + 2951 = $10,918 Mil.
Gross Profit was 473 + 549 + 450 + 449 = $1,921 Mil.
Total Current Assets was $4,251 Mil.
Total Assets was $10,236 Mil.
Property, Plant and Equipment(Net PPE) was $4,380 Mil.
Depreciation, Depletion and Amortization(DDA) was $407 Mil.
Selling, General & Admin. Expense(SGA) was $1,001 Mil.
Total Current Liabilities was $2,065 Mil.
Long-Term Debt was $4,716 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)
=(1466 / 9594) / (1632 / 10918)
=0.15280384 / 0.14947793
=1.0223

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)
=(1921 / 10918) / (1647 / 9594)
=0.17594798 / 0.17166979
=1.0249

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 - (3783 + 4298) / 9707) / (1 - (4251 + 4380) / 10236)
=0.16750798 / 0.15679953
=1.0683

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
=9594 / 10918
=0.8787

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))
=(407 / (407 + 4380)) / (424 / (424 + 4298))
=0.08502193 / 0.08979246
=0.9469

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)
=(933 / 9594) / (1001 / 10918)
=0.09724828 / 0.09168346
=1.0607

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)
=((4468 + 1789) / 9707) / ((4716 + 2065) / 10236)
=0.64458638 / 0.66246581
=0.973

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
=(202 - 5 - 1036) / 9707
=-0.0864

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.

Huntsman Corp has a M-score of -2.94 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.

Huntsman Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.81740.91140.68351.48741.20270.85221.00630.69381.12121.319
GMI 1.02711.0211.28960.87980.89040.96320.90191.14910.95460.9237
AQI 0.97821.2840.90570.77511.12360.99560.91271.14231.01991.1725
SGI 1.03371.10541.05840.75041.20681.21310.9970.99031.0450.8895
DEPI 0.9461.04061.00560.88071.10570.93431.04520.98621.14721.11
SGAI 1.17551.03580.95671.28430.83940.88181.03571.00020.98941.1334
LVGI 0.9221.02470.97790.98871.00530.98460.98061.0021.04341.0118
TATA -0.07440.0122-0.1148-0.20680.0282-0.014-0.0382-0.0587-0.0378-0.0466
M-score -2.97-2.29-3.13-3.44-1.95-2.49-2.74-2.91-2.52-2.49

Huntsman Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.69790.65021.12121.91871.42771.50971.3191.06861.01621.0223
GMI 0.95450.92920.95460.99040.96110.9610.92370.9331.00771.0249
AQI 1.00661.01051.01991.14961.21291.21731.17251.06481.02441.0683
SGI 1.03651.03081.0451.02520.98880.96350.88950.8820.8840.8787
DEPI 0.9630.94541.14721.21961.31091.29211.111.07070.97910.9469
SGAI 0.96370.94020.98941.02291.05361.09941.13341.09721.07221.0607
LVGI 0.98480.99411.04341.07491.05611.06011.01180.97270.97840.973
TATA -0.0433-0.0269-0.0378-0.0519-0.0685-0.0679-0.0466-0.0473-0.0652-0.0864
M-score -2.94-2.93-2.52-1.80-2.34-2.30-2.49-2.75-2.87-2.94
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