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Intel Corp (NAS:INTC)
Beneish M-Score
-2.79 (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 -2.79 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: -2.79

-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 * 1.119+0.528 * 1.0321+0.404 * 1.1879+0.892 * 1.0247+0.115 * 1.0574
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0167+4.679 * -0.0891-0.327 * 1.3739
=-2.79

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $4,426 Mil.
Revenue was 13533 + 13702 + 14914 + 14465 = $56,614 Mil.
Gross Profit was 7973 + 8130 + 9590 + 9111 = $34,804 Mil.
Total Current Assets was $31,188 Mil.
Total Assets was $109,831 Mil.
Property, Plant and Equipment(Net PPE) was $33,804 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,353 Mil.
Selling, General & Admin. Expense(SGA) was $8,261 Mil.
Total Current Liabilities was $18,711 Mil.
Long-Term Debt was $24,053 Mil.
Net Income was 1330 + 2046 + 3613 + 3109 = $10,098 Mil.
Non Operating Income was 488 + 96 + 97 + 146 = $827 Mil.
Cash Flow from Operations was 3845 + 4055 + 5427 + 5735 = $19,062 Mil.
Accounts Receivable was $3,860 Mil.
Revenue was 13195 + 12781 + 14721 + 14554 = $55,251 Mil.
Gross Profit was 8248 + 7730 + 9621 + 9458 = $35,057 Mil.
Total Current Assets was $26,710 Mil.
Total Assets was $90,492 Mil.
Property, Plant and Equipment(Net PPE) was $32,683 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,662 Mil.
Selling, General & Admin. Expense(SGA) was $7,930 Mil.
Total Current Liabilities was $13,529 Mil.
Long-Term Debt was $12,116 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)
=(4426 / 56614) / (3860 / 55251)
=0.07817854 / 0.06986299
=1.119

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)
=(35057 / 55251) / (34804 / 56614)
=0.63450435 / 0.6147596
=1.0321

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 - (31188 + 33804) / 109831) / (1 - (26710 + 32683) / 90492)
=0.4082545 / 0.34366574
=1.1879

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
=56614 / 55251
=1.0247

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))
=(8662 / (8662 + 32683)) / (8353 / (8353 + 33804))
=0.20950538 / 0.19814029
=1.0574

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)
=(8261 / 56614) / (7930 / 55251)
=0.14591797 / 0.14352681
=1.0167

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)
=((24053 + 18711) / 109831) / ((12116 + 13529) / 90492)
=0.38936184 / 0.28339522
=1.3739

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
=(10098 - 827 - 19062) / 109831
=-0.0891

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 -2.79 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 0.97030.98751.06210.91731.1021.00760.9641.04080.99490.9528
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 -0.1319-0.1044-0.0749-0.1248-0.0881-0.1163-0.0961-0.1258-0.0992-0.0778
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.99350.97480.93371.1660.87651.07951.12081.09141.28991.119
GMI 0.99410.9490.9350.93830.94840.97980.99891.01741.02551.0321
AQI 1.00421.01551.0381.0791.05941.06320.94330.88831.29441.1879
SGI 0.99771.03031.05031.061.05661.02481.00330.99081.0071.0247
DEPI 1.09321.07921.04670.99490.95620.94310.92730.95280.98571.0574
SGAI 1.02190.97280.95840.9490.92950.95720.96820.98371.0131.0167
LVGI 0.96840.96710.99841.05671.04271.02291.19631.13261.22941.3739
TATA -0.1211-0.1215-0.1139-0.0992-0.1103-0.0882-0.0847-0.0778-0.0724-0.0891
M-score -3.04-3.04-3.03-2.75-3.07-2.79-2.85-2.85-2.49-2.79
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