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Huntsman Corp (NYSE:HUN)
Beneish M-Score
-1.80 (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 -1.80 signals that the company is a manipulator.

HUN' s 10-Year Beneish M-Score Range
Min: -4.16   Max: 89.33
Current: -1.8

-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 * 1.9187+0.528 * 0.9904+0.404 * 1.1496+0.892 * 1.0252+0.115 * 1.2196
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0229+4.679 * -0.0519-0.327 * 1.0749
=-1.80

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,668 Mil.
Revenue was 2589 + 2951 + 2884 + 2988 = $11,412 Mil.
Gross Profit was 450 + 449 + 515 + 505 = $1,919 Mil.
Total Current Assets was $4,887 Mil.
Total Assets was $10,751 Mil.
Property, Plant and Equipment(Net PPE) was $4,250 Mil.
Depreciation, Depletion and Amortization(DDA) was $417 Mil.
Selling, General & Admin. Expense(SGA) was $991 Mil.
Total Current Liabilities was $2,474 Mil.
Long-Term Debt was $4,835 Mil.
Net Income was 5 + -38 + 188 + 119 = $274 Mil.
Non Operating Income was -2 + -30 + 1 + 2 = $-29 Mil.
Cash Flow from Operations was 34 + 417 + 360 + 50 = $861 Mil.
Accounts Receivable was $848 Mil.
Revenue was 2755 + 2705 + 2842 + 2830 = $11,132 Mil.
Gross Profit was 450 + 446 + 507 + 451 = $1,854 Mil.
Total Current Assets was $4,228 Mil.
Total Assets was $9,227 Mil.
Property, Plant and Equipment(Net PPE) was $3,794 Mil.
Depreciation, Depletion and Amortization(DDA) was $464 Mil.
Selling, General & Admin. Expense(SGA) was $945 Mil.
Total Current Liabilities was $2,215 Mil.
Long-Term Debt was $3,621 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)
=(1668 / 11412) / (848 / 11132)
=0.14616193 / 0.07617679
=1.9187

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)
=(449 / 11132) / (450 / 11412)
=0.16654689 / 0.16815633
=0.9904

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 - (4887 + 4250) / 10751) / (1 - (4228 + 3794) / 9227)
=0.15012557 / 0.13059499
=1.1496

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
=11412 / 11132
=1.0252

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))
=(464 / (464 + 3794)) / (417 / (417 + 4250))
=0.10897135 / 0.08935076
=1.2196

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)
=(991 / 11412) / (945 / 11132)
=0.08683842 / 0.08489041
=1.0229

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)
=((4835 + 2474) / 10751) / ((3621 + 2215) / 9227)
=0.67984374 / 0.6324916
=1.0749

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
=(274 - -29 - 861) / 10751
=-0.0519

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 -1.80 signals that the company is likely to 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.

Huntsman Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.68441.25440.91140.68351.48741.20270.85221.00630.67211.1181
GMI 0.93130.82971.0211.28960.87980.89040.96320.90191.14910.9546
AQI 1.10620.97821.2840.90570.77511.12360.99560.91271.14231.0673
SGI 1.35550.67361.10541.05840.75041.20681.21310.9970.99031.045
DEPI 0.96940.9461.04061.00560.88071.10570.93431.04520.98621.1472
SGAI 0.78181.66841.03580.95671.28430.83940.88181.03571.00020.9894
LVGI 0.82740.9221.02470.97790.98871.00530.98460.98061.0021.0473
TATA -0.0723-0.08790.0122-0.1148-0.20680.0282-0.014-0.0382-0.0587-0.0375
M-score -2.69-3.14-2.29-3.13-3.44-1.95-2.49-2.74-2.93-2.50

Huntsman Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.00630.92371.05491.04890.67210.52450.69790.65021.11811.9187
GMI 0.90191.00891.06041.13841.14911.00270.95450.92920.95460.9904
AQI 0.91271.00531.03191.05791.14231.06121.00661.01051.06731.1496
SGI 0.9970.95820.95250.98150.99031.01421.03651.03081.0451.0252
DEPI 1.04521.02981.03831.03350.98620.96880.9630.94541.14721.2196
SGAI 1.03571.07981.11631.10011.00020.97460.96370.94020.98941.0229
LVGI 0.98061.02571.02571.03041.0020.98270.98480.99411.04731.0749
TATA -0.0382-0.026-0.0254-0.0505-0.0587-0.0547-0.0433-0.0269-0.0375-0.0519
M-score -2.74-2.72-2.57-2.61-2.93-3.13-2.94-2.93-2.50-1.80
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