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Lafarge SA (OTCPK:LFRGY)
Beneish M-Score
-2.56 (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 -2.53 suggests that the company is not a manipulator.

LFRGY' s 10-Year Beneish M-Score Range
Min: -3.55   Max: -2.18
Current: -2.56

-3.55
-2.18

During the past 13 years, the highest Beneish M-Score of Lafarge SA was -2.18. The lowest was -3.55. 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 * 1.0351+0.404 * 1.0295+0.892 * 1.0065+0.115 * 0.9464
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9497+4.679 * -0.0196-0.327 * 0.9797
=-2.53

* 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 $0 Mil.
Revenue was 4556.15696888 + 3636.74033149 + 5059.94550409 + 5778.9904502 = $19,032 Mil.
Gross Profit was 1190.79837618 + 587.016574586 + 1147.13896458 + 1519.78171896 = $4,445 Mil.
Total Current Assets was $8,877 Mil.
Total Assets was $47,447 Mil.
Property, Plant and Equipment(Net PPE) was $16,173 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,250 Mil.
Selling, General & Admin. Expense(SGA) was $1,668 Mil.
Total Current Liabilities was $8,348 Mil.
Long-Term Debt was $13,601 Mil.
Net Income was 277.401894452 + -186.464088398 + 290.190735695 + 414.733969986 = $796 Mil.
Non Operating Income was 55.4803788904 + -15.1933701657 + 19.0735694823 + 1.36425648022 = $61 Mil.
Cash Flow from Operations was 40.5953991881 + -95.3038674033 + 920.980926431 + 799.454297408 = $1,666 Mil.
Accounts Receivable was $0 Mil.
Revenue was 4658.37696335 + 3487.61408083 + 5065.15957447 + 5697.79507134 = $18,909 Mil.
Gross Profit was 1222.51308901 + 561.929595828 + 1279.25531915 + 1507.13359274 = $4,571 Mil.
Total Current Assets was $9,356 Mil.
Total Assets was $48,391 Mil.
Property, Plant and Equipment(Net PPE) was $16,848 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,228 Mil.
Selling, General & Admin. Expense(SGA) was $1,745 Mil.
Total Current Liabilities was $8,380 Mil.
Long-Term Debt was $14,470 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 / 19031.8332547) / (0 / 18908.94569)
=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)
=(587.016574586 / 18908.94569) / (1190.79837618 / 19031.8332547)
=0.24172853 / 0.23354217
=1.0351

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 - (8876.86062246 + 16173.2070365) / 47446.5493911) / (1 - (9356.02094241 + 16848.1675393) / 48391.3612565)
=0.47203605 / 0.4584945
=1.0295

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
=19031.8332547 / 18908.94569
=1.0065

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))
=(1227.58632519 / (1227.58632519 + 16848.1675393)) / (1250.26063956 / (1250.26063956 + 16173.2070365))
=0.06791342 / 0.07175728
=0.9464

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)
=(1668.2694828 / 19031.8332547) / (1745.27896931 / 18908.94569)
=0.08765679 / 0.09229912
=0.9497

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)
=((13600.811908 + 8347.76725304) / 47446.5493911) / ((14469.895288 + 8379.58115183) / 48391.3612565)
=0.4625959 / 0.4721809
=0.9797

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
=(795.862511735 - 60.7248346872 - 1665.72675562) / 47446.5493911
=-0.0196

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 -2.53 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 1.02441.11970.94760.93430.950.87931.0010.997801
GMI 1.00581.22121.01840.9591.00111.05971.02361.07370.97761.0757
AQI 0.92890.9281.03521.08991.16361.03820.96870.96861.00261.0236
SGI 1.09831.02291.13391.18140.97180.89880.9540.91231.06650.9845
DEPI 1.00671.19930.96271.05011.22570.94851.02520.98170.99190.9697
SGAI 0.95951.01580.82970.91620.97531.15610.98990.91280.93561.0058
LVGI 0.95291.00741.16410.93671.1610.88011.01620.94320.97911.0201
TATA -0.0312-0.0253-0.0427-0.0271-0.0345-0.0621-0.0313-0.025-0.0221-0.0182
M-score -2.52-2.36-2.61-2.45-2.67-2.92-2.67-2.62-3.44-2.54

Lafarge SA Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 10.982500001111
GMI 1.05411.02551.00330.96730.9840.99080.99051.04211.03771.0351
AQI 1.0030.98560.98941.00261.02141.20751.05151.02361.1931.0295
SGI 0.95780.88490.89960.92130.90950.92910.93710.93020.9821.0065
DEPI 1.01621.04231.04921.08571.11480.92061.07751.03990.78920.9464
SGAI 0.90120.86420.86280.91860.95811.00391.04991.00810.98810.9497
LVGI 0.93120.930.9640.97910.98530.98381.00211.02010.98670.9797
TATA -0.0229-0.0284-0.0233-0.0217-0.0275-0.027-0.0252-0.0181-0.0239-0.0196
M-score -2.55-2.67-3.56-3.56-3.58-3.52-2.64-2.60-2.53-2.53
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