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Intel Corp (NAS:INTC)
Beneish M-Score
-3.01 (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.

Intel Corp has a M-score of -2.85 suggests that the company is not a manipulator.

INTC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Max: -2.19
Current: -3.01

-3.51
-2.19

During the past 13 years, the highest Beneish M-Score of Intel Corp was -2.19. The lowest was -3.51. And the median was -3.01.


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 Intel 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 * 1.1208+0.528 * 0.9989+0.404 * 0.9433+0.892 * 1.0033+0.115 * 0.9273
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9682+4.679 * -0.0847-0.327 * 1.1963
=-2.85

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $4,101 Mil.
Revenue was 14465 + 13195 + 12781 + 14721 = $55,162 Mil.
Gross Profit was 9111 + 8248 + 7730 + 9621 = $34,710 Mil.
Total Current Assets was $36,205 Mil.
Total Assets was $98,552 Mil.
Property, Plant and Equipment(Net PPE) was $31,597 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,739 Mil.
Selling, General & Admin. Expense(SGA) was $7,861 Mil.
Total Current Liabilities was $15,080 Mil.
Long-Term Debt was $20,059 Mil.
Net Income was 3109 + 2706 + 1992 + 3661 = $11,468 Mil.
Non Operating Income was 146 + 112 + 68 + 132 = $458 Mil.
Cash Flow from Operations was 5735 + 3440 + 4415 + 5771 = $19,361 Mil.
Accounts Receivable was $3,647 Mil.
Revenue was 14554 + 13831 + 12764 + 13834 = $54,983 Mil.
Gross Profit was 9458 + 8917 + 7613 + 8571 = $34,559 Mil.
Total Current Assets was $27,509 Mil.
Total Assets was $90,616 Mil.
Property, Plant and Equipment(Net PPE) was $33,135 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,331 Mil.
Selling, General & Admin. Expense(SGA) was $8,093 Mil.
Total Current Liabilities was $14,904 Mil.
Long-Term Debt was $12,103 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)
=(4101 / 55162) / (3647 / 54983)
=0.07434466 / 0.06632959
=1.1208

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)
=(8248 / 54983) / (9111 / 55162)
=0.62853973 / 0.62923752
=0.9989

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 - (36205 + 31597) / 98552) / (1 - (27509 + 33135) / 90616)
=0.31201802 / 0.33075836
=0.9433

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
=55162 / 54983
=1.0033

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))
=(8331 / (8331 + 33135)) / (8739 / (8739 + 31597))
=0.20091159 / 0.2166551
=0.9273

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)
=(7861 / 55162) / (8093 / 54983)
=0.14250752 / 0.14719095
=0.9682

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)
=((20059 + 15080) / 98552) / ((12103 + 14904) / 90616)
=0.35655289 / 0.29803787
=1.1963

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
=(11468 - 458 - 19361) / 98552
=-0.0847

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.

Intel Corp has a M-score of -2.85 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.

Intel Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.75950.87770.67781.42061.01571.02851.06310.94571.1661.0914
GMI 1.1530.99170.93630.99590.85261.04481.00591.03920.93831.0174
AQI 1.24611.03350.96741.07360.78111.40450.97531.05341.0790.8883
SGI 0.91131.08340.98050.93461.24191.23790.98780.98811.060.9908
DEPI 0.97030.98751.06210.91731.1021.00760.9641.04080.994924.7996
SGAI 1.1760.81781.02951.55650.64060.98211.06341.01590.9490.9837
LVGI 0.91270.8850.94081.01790.99411.4891.14850.93781.05671.1326
TATA -0.1319-0.1003-0.0749-0.1248-0.0881-0.1163-0.0961-0.1259-0.09920.1077
M-score -3.22-2.91-3.17-2.82-2.75-2.75-2.95-3.07-2.750.76

Intel Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.96960.94570.99350.97480.93371.1660.87651.07951.12081.0914
GMI 1.08541.03920.99410.9490.9350.93830.94840.97980.99891.0174
AQI 0.97741.05341.00421.01551.0381.0791.05941.06320.94330.8883
SGI 0.9740.98810.99771.03031.05031.061.05661.02481.00330.9908
DEPI 0.98621.04081.09321.07921.04670.99490.95620.94310.92731.1873
SGAI 1.02271.01591.02190.97280.95840.9490.92950.95720.96820.9837
LVGI 1.16640.93780.96840.96710.99841.05671.04271.02291.19631.1326
TATA -0.1302-0.1259-0.1212-0.1216-0.114-0.0992-0.1103-0.0882-0.0847-0.0244
M-score -3.16-3.07-3.04-3.04-3.04-2.75-3.07-2.79-2.85-2.57
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