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Intel Corp (NAS:INTC)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

INTC' s 10-Year Beneish M-Score Range
Min: -3.51   Max: -2.2
Current: -3.04

-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 -3.01.


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 * 0.9748+0.528 * 0.949+0.404 * 1.0155+0.892 * 1.0303+0.115 * 1.0792
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9728+4.679 * -0.1215-0.327 * 0.9671
=-3.04

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $3,489 Mil.
Revenue was 13831 + 12764 + 13834 + 13483 = $53,912 Mil.
Gross Profit was 8917 + 7613 + 8571 + 8414 = $33,515 Mil.
Total Current Assets was $29,006 Mil.
Total Assets was $91,793 Mil.
Property, Plant and Equipment(Net PPE) was $33,115 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,154 Mil.
Selling, General & Admin. Expense(SGA) was $8,084 Mil.
Total Current Liabilities was $12,251 Mil.
Long-Term Debt was $13,180 Mil.
Net Income was 2796 + 1930 + 2625 + 2950 = $10,301 Mil.
Non Operating Income was 89 + 162 + 26 + 452 = $729 Mil.
Cash Flow from Operations was 5453 + 3501 + 6038 + 5731 = $20,723 Mil.
Accounts Receivable was $3,474 Mil.
Revenue was 12811 + 12580 + 13477 + 13457 = $52,325 Mil.
Gross Profit was 7470 + 7066 + 7817 + 8515 = $30,868 Mil.
Total Current Assets was $29,048 Mil.
Total Assets was $85,661 Mil.
Property, Plant and Equipment(Net PPE) was $29,345 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,953 Mil.
Selling, General & Admin. Expense(SGA) was $8,065 Mil.
Total Current Liabilities was $11,389 Mil.
Long-Term Debt was $13,150 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)
=(3489 / 53912) / (3474 / 52325)
=0.06471658 / 0.06639274
=0.9748

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)
=(7613 / 52325) / (8917 / 53912)
=0.58992833 / 0.62166123
=0.949

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 - (29006 + 33115) / 91793) / (1 - (29048 + 29345) / 85661)
=0.32324905 / 0.31832456
=1.0155

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
=53912 / 52325
=1.0303

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))
=(7953 / (7953 + 29345)) / (8154 / (8154 + 33115))
=0.21322859 / 0.19758172
=1.0792

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)
=(8084 / 53912) / (8065 / 52325)
=0.14994806 / 0.15413282
=0.9728

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)
=((13180 + 12251) / 91793) / ((13150 + 11389) / 85661)
=0.27704727 / 0.28646642
=0.9671

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
=(10301 - 729 - 20723) / 91793
=-0.1215

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 -3.04 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.97350.93730.98881.06310.89311.02150.96960.94570.99350.9748
GMI 1.02370.98740.97921.00591.04781.08151.08541.03920.99410.949
AQI 0.84080.84691.06020.97531.05121.11850.97741.05341.00421.0155
SGI 1.17081.12571.04230.98780.98070.95960.9740.98810.99771.0303
DEPI 0.98910.98540.9840.9640.94630.96640.98621.04081.09321.0792
SGAI 1.02281.04341.04621.06341.04081.03831.02271.01591.02190.9728
LVGI 1.27261.29420.95111.14851.1331.17561.16640.93780.96840.9671
TATA -0.1039-0.1172-0.1043-0.0961-0.1213-0.1261-0.1302-0.1258-0.1211-0.1215
M-score -2.98-3.15-2.92-2.95-3.17-3.06-3.16-3.06-3.04-3.04
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