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Intel Corp (NAS:INTC)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

INTC' s 10-Year Beneish M-Score Range
Min: -3.51   Max: -2.31
Current: -2.75

-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 -2.95.


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 * 1.166+0.528 * 0.9383+0.404 * 1.079+0.892 * 1.06+0.115 * 0.9949
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.949+4.679 * -0.0992-0.327 * 1.0567
=-2.75

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $4,427 Mil.
Revenue was 14721 + 14554 + 13831 + 12764 = $55,870 Mil.
Gross Profit was 9621 + 9458 + 8917 + 7613 = $35,609 Mil.
Total Current Assets was $27,730 Mil.
Total Assets was $91,956 Mil.
Property, Plant and Equipment(Net PPE) was $33,238 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,549 Mil.
Selling, General & Admin. Expense(SGA) was $8,136 Mil.
Total Current Liabilities was $16,019 Mil.
Long-Term Debt was $12,107 Mil.
Net Income was 3661 + 3317 + 2796 + 1930 = $11,704 Mil.
Non Operating Income was 132 + 28 + 89 + 162 = $411 Mil.
Cash Flow from Operations was 5771 + 5693 + 5453 + 3501 = $20,418 Mil.
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.



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)
=(4427 / 55870) / (3582 / 52708)
=0.07923752 / 0.06795932
=1.166

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)
=(9458 / 52708) / (9621 / 55870)
=0.59803066 / 0.63735457
=0.9383

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 - (27730 + 33238) / 91956) / (1 - (32084 + 31428) / 92358)
=0.33698725 / 0.31232811
=1.079

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
=55870 / 52708
=1.06

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))
=(8032 / (8032 + 31428)) / (8549 / (8549 + 33238))
=0.2035479 / 0.20458516
=0.9949

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)
=(8136 / 55870) / (8088 / 52708)
=0.14562377 / 0.15344919
=0.949

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)
=((12107 + 16019) / 91956) / ((13165 + 13568) / 92358)
=0.30586367 / 0.28944975
=1.0567

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
=(11704 - 411 - 20418) / 91956
=-0.0992

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 -2.75 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.14990.75950.87770.67781.42061.01571.02851.06310.94571.166
GMI 0.97231.1530.99170.93630.99590.85261.04481.00591.03920.9383
AQI 1.19921.24611.03350.96741.07360.78111.40450.97531.05341.079
SGI 1.1350.91131.08340.98050.93461.24191.23790.98780.98811.06
DEPI 1.1180.97030.98751.06210.91731.1021.00760.9641.04080.9949
SGAI 1.07571.1760.81781.02951.55650.64060.98211.06341.01590.949
LVGI 1.29750.91270.8850.94081.01790.99411.4891.14850.93781.0567
TATA -0.1267-0.1319-0.1003-0.0749-0.1248-0.0881-0.1163-0.0961-0.1259-0.0992
M-score -2.85-3.22-2.91-3.17-2.82-2.75-2.75-2.95-3.07-2.75

Intel Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.06310.89311.02150.96960.94570.99350.97480.93371.1660.8765
GMI 1.00591.04781.08151.08541.03920.99410.9490.9350.93830.9484
AQI 0.97531.05121.11850.97741.05341.00421.01551.0381.0791.0594
SGI 0.98780.98070.95960.9740.98810.99771.03031.05031.061.0566
DEPI 0.9640.94630.96640.98621.04081.09321.07921.04670.99491.1904
SGAI 1.06341.04081.03831.02271.01591.02190.97280.95840.9490.9295
LVGI 1.14851.1331.17561.16640.93780.96840.96710.99841.05671.0427
TATA -0.0961-0.1213-0.1261-0.1302-0.1259-0.1212-0.1216-0.114-0.0992-0.0606
M-score -2.95-3.17-3.06-3.16-3.07-3.04-3.04-3.04-2.75-2.81
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