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Intel Corp (NAS:INTC)
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.

Intel Corp has a M-score of -2.49 suggests that the company is not a manipulator.

INTC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Max: -2.2
Current: -2.49

-3.51
-2.2

During the past 13 years, the highest Beneish M-Score of Intel Corp was -2.20. The lowest was -3.51. And the median was -3.00.


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 * 1.2899+0.528 * 1.0255+0.404 * 1.2944+0.892 * 1.007+0.115 * 0.9857
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.013+4.679 * -0.0724-0.327 * 1.2294
=-2.49

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $4,216 Mil.
Revenue was 13702 + 14914 + 14465 + 13195 = $56,276 Mil.
Gross Profit was 8130 + 9590 + 9111 + 8248 = $35,079 Mil.
Total Current Assets was $27,397 Mil.
Total Assets was $105,467 Mil.
Property, Plant and Equipment(Net PPE) was $32,644 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,627 Mil.
Selling, General & Admin. Expense(SGA) was $8,203 Mil.
Total Current Liabilities was $17,526 Mil.
Long-Term Debt was $21,775 Mil.
Net Income was 2046 + 3613 + 3109 + 2706 = $11,474 Mil.
Non Operating Income was 96 + 97 + 146 + 112 = $451 Mil.
Cash Flow from Operations was 4055 + 5427 + 5735 + 3440 = $18,657 Mil.
Accounts Receivable was $3,246 Mil.
Revenue was 12781 + 14721 + 14554 + 13831 = $55,887 Mil.
Gross Profit was 7730 + 9621 + 9458 + 8917 = $35,726 Mil.
Total Current Assets was $26,466 Mil.
Total Assets was $89,566 Mil.
Property, Plant and Equipment(Net PPE) was $33,296 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,641 Mil.
Selling, General & Admin. Expense(SGA) was $8,042 Mil.
Total Current Liabilities was $15,035 Mil.
Long-Term Debt was $12,112 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)
=(4216 / 56276) / (3246 / 55887)
=0.07491648 / 0.05808149
=1.2899

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)
=(9590 / 55887) / (8130 / 56276)
=0.63925421 / 0.62333855
=1.0255

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 - (27397 + 32644) / 105467) / (1 - (26466 + 33296) / 89566)
=0.43071292 / 0.3327602
=1.2944

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
=56276 / 55887
=1.007

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))
=(8641 / (8641 + 33296)) / (8627 / (8627 + 32644))
=0.20604717 / 0.20903298
=0.9857

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)
=(8203 / 56276) / (8042 / 55887)
=0.14576374 / 0.14389751
=1.013

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)
=((21775 + 17526) / 105467) / ((12112 + 15035) / 89566)
=0.37263789 / 0.30309492
=1.2294

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
=(11474 - 451 - 18657) / 105467
=-0.0724

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 -2.49 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 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 1.24611.03350.96741.07360.78111.40450.97531.05341.07770.8893
SGI 0.91131.08340.98050.93461.24191.23790.98780.98811.060.9908
DEPI 0.97030.98751.06210.91731.1021.00760.9641.04080.99490.9528
SGAI 1.1760.81781.03071.55480.64060.98211.06341.01590.9490.9837
LVGI 0.91270.8850.94081.01790.99411.4891.14850.93781.05521.1341
TATA -0.1319-0.1044-0.0749-0.1248-0.0881-0.1163-0.0961-0.1258-0.0993-0.0778
M-score -3.22-2.93-3.17-2.82-2.75-2.75-2.95-3.06-2.75-2.85

Intel Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.94570.99350.97480.93371.1660.87651.07951.12081.09141.2899
GMI 1.03920.99410.9490.9350.93830.94840.97980.99891.01741.0255
AQI 1.05341.00421.01551.0381.07771.05941.06320.94330.88931.2944
SGI 0.98810.99771.03031.05031.061.05661.02481.00330.99081.007
DEPI 1.04081.09321.07921.04670.99490.95620.94310.92730.95280.9857
SGAI 1.01591.02190.97280.95840.9490.92950.95720.96820.98371.013
LVGI 0.93780.96840.96710.99841.05521.04271.02291.19631.13411.2294
TATA -0.1258-0.1211-0.1215-0.1139-0.1003-0.1114-0.0893-0.0857-0.0778-0.0724
M-score -3.06-3.04-3.04-3.03-2.75-3.07-2.79-2.86-2.85-2.49
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