Switch to:

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1356

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1361

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1356

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1361

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1356

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1361
Lafarge SA (OTCPK:LFRGY)
Beneish M-Score
-2.54 (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.

Lafarge SA has a M-score of -2.49 suggests that the company is not a manipulator.

LFRGY' s 10-Year Beneish M-Score Range
Min: -3.57   Max: -2.29
Current: -2.54

-3.57
-2.29

During the past 13 years, the highest Beneish M-Score of Lafarge SA was -2.29. The lowest was -3.57. And the median was -2.66.


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 Lafarge SA 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+0.528 * 1.0489+0.404 * 1.193+0.892 * 1.0191+0.115 * 0.7308
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9623+4.679 * -0.0236-0.327 * 0.9867
=-2.49

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $0 Mil.
Revenue was 3636.74033149 + 5059.94550409 + 5778.9904502 + 5382.19895288 = $19,858 Mil.
Gross Profit was 587.016574586 + 1147.13896458 + 1519.78171896 + 1352.09424084 = $4,606 Mil.
Total Current Assets was $9,184 Mil.
Total Assets was $48,200 Mil.
Property, Plant and Equipment(Net PPE) was $16,387 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,364 Mil.
Selling, General & Admin. Expense(SGA) was $1,781 Mil.
Total Current Liabilities was $7,807 Mil.
Long-Term Debt was $14,613 Mil.
Net Income was -186.464088398 + 290.190735695 + 414.733969986 + 263.089005236 = $782 Mil.
Non Operating Income was -15.1933701657 + 19.0735694823 + 1.36425648022 + 10.4712041885 = $16 Mil.
Cash Flow from Operations was -95.3038674033 + 920.980926431 + 799.454297408 + 276.178010471 = $1,901 Mil.
Accounts Receivable was $0 Mil.
Revenue was 3487.61408083 + 5065.15957447 + 5697.79507134 + 5234.64373464 = $19,485 Mil.
Gross Profit was 561.929595828 + 1279.25531915 + 1512.32166018 + 1386.97788698 = $4,740 Mil.
Total Current Assets was $10,498 Mil.
Total Assets was $52,140 Mil.
Property, Plant and Equipment(Net PPE) was $21,123 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,257 Mil.
Selling, General & Admin. Expense(SGA) was $1,816 Mil.
Total Current Liabilities was $8,842 Mil.
Long-Term Debt was $15,737 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)
=(0 / 19857.8752387) / (0 / 19485.2124613)
=0 / 0
=1

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)
=(1147.13896458 / 19485.2124613) / (587.016574586 / 19857.8752387)
=0.24328626 / 0.23194987
=1.0489

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 - (9183.70165746 + 16386.7403315) / 48200.2762431) / (1 - (10498.0443286 + 21122.5554107) / 52139.5045632)
=0.46949595 / 0.39353855
=1.193

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
=19857.8752387 / 19485.2124613
=1.0191

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))
=(1257.06392273 / (1257.06392273 + 21122.5554107)) / (1364.30856055 / (1364.30856055 + 16386.7403315))
=0.05617003 / 0.07685791
=0.7308

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)
=(1780.61530175 / 19857.8752387) / (1815.73666436 / 19485.2124613)
=0.08966797 / 0.09318537
=0.9623

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)
=((14613.2596685 + 7806.62983425) / 48200.2762431) / ((15736.6362451 + 8842.24250326) / 52139.5045632)
=0.46514027 / 0.47140607
=0.9867

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
=(781.549622519 - 15.7156599852 - 1901.30936691) / 48200.2762431
=-0.0236

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.

Lafarge SA 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.

Lafarge SA Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.1531.18230.79730.93430.950.87931.0911011
GMI 1.22281.01531.00740.9591.00111.05970.99661.10270.97481.0787
AQI 0.89740.96071.03741.08761.16361.03820.96870.96861.00261.0236
SGI 0.98721.03271.24961.18140.97180.89880.87520.99441.06650.9845
DEPI 1.29681.05690.8481.05011.22570.94851.09560.91860.99190.9697
SGAI 0.90940.98240.90510.91620.97531.15610.9580.94310.96050.9797
LVGI 1.00240.97791.14080.93611.1610.88011.01620.94320.97911.0201
TATA -0.0287-0.0319-0.0426-0.0271-0.0345-0.0621-0.0311-0.025-0.0238-0.0182
M-score -2.36-2.42-2.67-2.45-2.67-2.92-2.65-3.46-2.53-2.53

Lafarge SA Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0100101111
GMI 1.0911.06961.05081.01910.97560.98841.00111.00291.05421.0489
AQI 0.96861.0030.98560.98941.00261.02141.03391.05151.02361.193
SGI 1.01970.99770.9660.9620.9660.9320.96470.97280.96571.0191
DEPI 0.85860.91490.91221.03381.0881.13871.05770.99560.96240.7308
SGAI 0.92780.91610.89630.89650.95870.98261.00181.03330.97660.9623
LVGI 0.94320.93120.930.9640.97910.98531.0131.00211.02010.9867
TATA -0.0248-0.0232-0.0293-0.0245-0.0234-0.0287-0.0261-0.0253-0.0177-0.0236
M-score -3.45-2.53-3.52-3.51-2.61-3.57-2.62-2.61-2.56-2.49
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
Email Hide