Switch to:
Lafarge SA (OTCPK:LFRGY)
Beneish M-Score
-2.78 (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 -2.96 suggests that the company is not a manipulator.

LFRGY' s 10-Year Beneish M-Score Range
Min: -3.51   Max: -1.98
Current: -2.78

-3.51
-1.98

During the past 13 years, the highest Beneish M-Score of Lafarge SA was -1.98. The lowest was -3.51. And the median was -2.59.


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 * 0.8447+0.528 * 1.0081+0.404 * 0.878+0.892 * 0.8933+0.115 * 0.8667
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0027+4.679 * -0.0418-0.327 * 0.9652
=-2.96

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $2,051 Mil.
Revenue was 3973.06397306 + 3007.57575758 + 3954.37731196 + 4685.56701031 = $15,621 Mil.
Gross Profit was 1037.03703704 + 525.974025974 + 906.288532676 + 1243.55670103 = $3,713 Mil.
Total Current Assets was $10,806 Mil.
Total Assets was $39,652 Mil.
Property, Plant and Equipment(Net PPE) was $12,412 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,006 Mil.
Selling, General & Admin. Expense(SGA) was $1,383 Mil.
Total Current Liabilities was $6,172 Mil.
Long-Term Debt was $11,508 Mil.
Net Income was -427.609427609 + -103.896103896 + -178.79161529 + 280.927835052 = $-429 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 76.3187429854 + -88.7445887446 + 652.281134402 + 590.206185567 = $1,230 Mil.
Accounts Receivable was $2,717 Mil.
Revenue was 4574.72826087 + 3641.77040111 + 4330.58984911 + 4939.91989319 = $17,487 Mil.
Gross Profit was 1195.65217391 + 587.828492393 + 1037.03703704 + 1369.82643525 = $4,190 Mil.
Total Current Assets was $8,913 Mil.
Total Assets was $47,640 Mil.
Property, Plant and Equipment(Net PPE) was $16,239 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,129 Mil.
Selling, General & Admin. Expense(SGA) was $1,544 Mil.
Total Current Liabilities was $8,382 Mil.
Long-Term Debt was $13,625 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)
=(2050.50505051 / 15620.5840529) / (2717.39130435 / 17487.0084043)
=0.13126942 / 0.15539486
=0.8447

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)
=(525.974025974 / 17487.0084043) / (1037.03703704 / 15620.5840529)
=0.23962613 / 0.23768998
=1.0081

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 - (10805.8361392 + 12411.8967452) / 39652.0763187) / (1 - (8913.04347826 + 16239.1304348) / 47639.9456522)
=0.41446363 / 0.47203605
=0.878

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
=15620.5840529 / 17487.0084043
=0.8933

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))
=(1129.0763671 / (1129.0763671 + 16239.1304348)) / (1006.49528298 / (1006.49528298 + 12411.8967452))
=0.06500823 / 0.07500864
=0.8667

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)
=(1382.61092498 / 15620.5840529) / (1543.62138522 / 17487.0084043)
=0.08851211 / 0.08827247
=1.0027

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)
=((11508.4175084 + 6171.71717172) / 39652.0763187) / ((13625 + 8381.79347826) / 47639.9456522)
=0.44588169 / 0.46193994
=0.9652

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
=(-429.369311744 - 0 - 1230.06147421) / 39652.0763187
=-0.0418

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 -2.96 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.21860.82750.90290.85370.87081.12670.96560.96470.91311.2224
GMI 1.22121.01840.9591.00111.05970.99661.10270.97761.07570.9724
AQI 0.96071.03741.08761.16361.03820.96870.96861.00261.20931.0421
SGI 0.97891.181.14791.00320.90020.84741.02491.03211.00440.7596
DEPI 1.05690.8481.05011.22570.94851.09560.91860.99190.80361.2054
SGAI 1.01580.82970.91620.97531.15610.9580.94310.93561.00580.9618
LVGI 0.97791.14080.93611.1610.88011.01620.94320.97910.98850.9152
TATA -0.0144-0.0426-0.0271-0.0345-0.0621-0.0311-0.025-0.0219-0.0186-0.0231
M-score -2.25-2.69-2.51-2.73-2.93-2.65-2.55-2.58-2.54-2.54

Lafarge SA Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.10120.94340.98581.07520.92161.19631.05460.96020.9030.8447
GMI 0.98770.99150.98111.01761.0141.01011.03621.0321.00591.0081
AQI 1.02141.20751.2351.20931.1931.02951.03491.04211.03990.878
SGI 0.92370.91430.88490.8530.90430.92920.95210.96710.92130.8933
DEPI 1.88941.61051.5850.96520.8721.03221.01710.93440.91380.8667
SGAI 0.98231.00821.04660.99190.97650.94160.90850.95040.94621.0027
LVGI 0.98530.98160.9690.98850.98530.98040.95510.91520.89870.9652
TATA -0.0293-0.0278-0.0262-0.0143-0.0189-0.0137-0.0139-0.0232-0.0231-0.0418
M-score -2.48-2.58-2.56-2.51-2.65-2.39-2.47-2.59-2.70-2.96
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)

GuruFocus Premium Plus Membership

FEEDBACK