Switch to:
Intel Corp (NAS:INTC)
Beneish M-Score
-3.06 (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 -3.06 suggests that the company is not a manipulator.

INTC' s 10-Year Beneish M-Score Range
Min: -3.51   Max: -2.31
Current: -3.06

-3.51
-2.31

During the past 13 years, the highest Beneish M-Score of Intel Corp was -2.31. The lowest was -3.51. And the median was -2.98.


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 * 0.9457+0.528 * 1.0392+0.404 * 1.0534+0.892 * 0.9881+0.115 * 1.0408
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0159+4.679 * -0.1258-0.327 * 0.9378
=-3.06

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $3,582 Mil.
Revenue was 13834 + 13483 + 12811 + 12580 = $52,708 Mil.
Gross Profit was 8571 + 8414 + 7470 + 7066 = $31,521 Mil.
Total Current Assets was $32,084 Mil.
Total Assets was $92,358 Mil.
Property, Plant and Equipment(Net PPE) was $31,428 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,032 Mil.
Selling, General & Admin. Expense(SGA) was $8,088 Mil.
Total Current Liabilities was $13,568 Mil.
Long-Term Debt was $13,165 Mil.
Net Income was 2625 + 2950 + 2000 + 2045 = $9,620 Mil.
Non Operating Income was 26 + 452 + 8 + -26 = $460 Mil.
Cash Flow from Operations was 6038 + 5731 + 4722 + 4285 = $20,776 Mil.
Accounts Receivable was $3,833 Mil.
Revenue was 13477 + 13457 + 13501 + 12906 = $53,341 Mil.
Gross Profit was 7817 + 8515 + 8554 + 8265 = $33,151 Mil.
Total Current Assets was $31,358 Mil.
Total Assets was $84,351 Mil.
Property, Plant and Equipment(Net PPE) was $27,983 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,522 Mil.
Selling, General & Admin. Expense(SGA) was $8,057 Mil.
Total Current Liabilities was $12,898 Mil.
Long-Term Debt was $13,136 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)
=(3582 / 52708) / (3833 / 53341)
=0.06795932 / 0.07185842
=0.9457

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)
=(8414 / 53341) / (8571 / 52708)
=0.62149191 / 0.59803066
=1.0392

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 - (32084 + 31428) / 92358) / (1 - (31358 + 27983) / 84351)
=0.31232811 / 0.29649915
=1.0534

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
=52708 / 53341
=0.9881

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))
=(7522 / (7522 + 27983)) / (8032 / (8032 + 31428))
=0.21185748 / 0.2035479
=1.0408

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)
=(8088 / 52708) / (8057 / 53341)
=0.15344919 / 0.15104704
=1.0159

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)
=((13165 + 13568) / 92358) / ((13136 + 12898) / 84351)
=0.28944975 / 0.3086389
=0.9378

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
=(9620 - 460 - 20776) / 92358
=-0.1258

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 -3.06 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.89271.14990.75950.87770.67781.42061.01571.02851.06310.9457
GMI 0.98250.97231.1530.99170.93630.99590.85261.04481.00591.0392
AQI 1.07161.19921.24611.03350.96741.07360.78111.40450.97531.0534
SGI 1.1351.1350.91131.08340.98050.93461.24191.23790.98780.9881
DEPI 0.98581.1180.97030.98751.06210.91731.1021.00760.9641.0408
SGAI 0.95961.07571.1760.81781.02951.55650.64060.98211.06341.0159
LVGI 1.09121.29750.91270.8850.94081.01790.99411.4891.14850.9378
TATA -0.1171-0.1267-0.1319-0.1003-0.0749-0.1248-0.0881-0.1163-0.0961-0.1258
M-score -3.01-2.85-3.22-2.91-3.17-2.82-2.75-2.75-2.95-3.06

Intel Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.08781.02850.97350.93730.98881.06310.89311.02150.96960.9457
GMI 1.04621.04481.02370.98740.97921.00591.04781.08151.08541.0392
AQI 1.34041.40450.84080.84691.06020.97531.05121.11850.97741.0534
SGI 1.20671.23791.17081.12571.04230.98780.98070.95960.9740.9881
DEPI 1.05091.00760.98910.98540.9840.9640.94630.96640.98621.0408
SGAI 0.83770.98211.02281.04341.04621.06341.04081.03831.02271.0159
LVGI 1.49441.4891.27261.29420.95111.14851.1331.17561.16640.9378
TATA -0.1061-0.1163-0.1039-0.1172-0.1043-0.0961-0.1213-0.1261-0.1302-0.1258
M-score -2.68-2.75-2.98-3.15-2.92-2.95-3.17-3.06-3.16-3.06
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)
Free 7-day Trial
FEEDBACK
Hide