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ArcelorMittal SA (NYSE:MT)
Beneish M-Score
-8.34 (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.

ArcelorMittal SA has a M-score of -9.47 suggests that the company is not a manipulator.

MT' s Beneish M-Score Range Over the Past 10 Years
Min: -83.75   Max: 0.11
Current: -8.34

-83.75
0.11

During the past 13 years, the highest Beneish M-Score of ArcelorMittal SA was 0.11. The lowest was -83.75. And the median was -2.64.


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 ArcelorMittal 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 * 1.0006+0.528 * -10.9358+0.404 * 0.9668+0.892 * 0.7813+0.115 * 0.486
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.1178-0.327 * 1.1216
=-9.47

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $3,325 Mil.
Revenue was 13399 + 13981 + 15589 + 16890 = $59,859 Mil.
Gross Profit was 13399 + -51215 + 47141 + -14662 = $-5,337 Mil.
Total Current Assets was $22,148 Mil.
Total Assets was $76,559 Mil.
Property, Plant and Equipment(Net PPE) was $36,213 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,801 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $18,532 Mil.
Long-Term Debt was $16,309 Mil.
Net Income was -416 + -6686 + -711 + 179 = $-7,634 Mil.
Non Operating Income was 333 + -997 + -379 + 52 = $-991 Mil.
Cash Flow from Operations was -690 + 1574 + 473 + 1019 = $2,376 Mil.
Accounts Receivable was $4,253 Mil.
Revenue was 17118 + 18723 + 20067 + 20704 = $76,612 Mil.
Gross Profit was 17118 + 17741 + 20067 + 19773 = $74,699 Mil.
Total Current Assets was $25,061 Mil.
Total Assets was $88,517 Mil.
Property, Plant and Equipment(Net PPE) was $41,694 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,930 Mil.
Selling, General & Admin. Expense(SGA) was $35,849 Mil.
Total Current Liabilities was $18,928 Mil.
Long-Term Debt was $16,986 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)
=(3325 / 59859) / (4253 / 76612)
=0.0555472 / 0.0555135
=1.0006

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)
=(-51215 / 76612) / (13399 / 59859)
=0.97503002 / -0.08915952
=-10.9358

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 - (22148 + 36213) / 76559) / (1 - (25061 + 41694) / 88517)
=0.23769903 / 0.24585108
=0.9668

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
=59859 / 76612
=0.7813

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))
=(3930 / (3930 + 41694)) / (7801 / (7801 + 36213))
=0.08613887 / 0.17723906
=0.486

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)
=(0 / 59859) / (35849 / 76612)
=0 / 0.46792931
=0

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)
=((16309 + 18532) / 76559) / ((16986 + 18928) / 88517)
=0.45508693 / 0.40572997
=1.1216

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
=(-7634 - -991 - 2376) / 76559
=-0.1178

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.

ArcelorMittal SA has a M-score of -9.47 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.

ArcelorMittal SA Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.83230.60830.59521.63770.83080.93570.87951.01860.7580.9039
GMI 1.32790.92251.27814.46570.37930.988878.91640.02160.6981-2.9708
AQI 1.62071.18641.08681.26310.9581.01260.95050.96681.03220.9851
SGI 2.09261.78731.18740.52111.19841.20440.89610.94330.9980.8019
DEPI 1.03320.58810.74681.22631.0020.94320.99070.95381.07420.9522
SGAI 1.33191.0271.02151.12830.71840.8851.04250.95610.991.0713
LVGI 1.02310.99091.03970.81881.10461.0211.02990.9631.00061.1939
TATA -0.0219-0.056-0.0494-0.0463-0.0061-0.0011-0.0819-0.057-0.0289-0.1043
M-score -0.48-2.41-2.78-0.54-2.82-2.3638.03-3.30-2.98-5.42

ArcelorMittal SA Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.01860.92520.88550.83980.7580.79540.89460.87840.90391.0006
GMI 0.1507-0.4055-0.7452-0.5870.05410.06960.13790.0967-38.3461-10.9358
AQI 0.96681.02091.06241.02591.02681.01580.98511.00570.9860.9668
SGI 0.94330.9781.01271.01910.9980.9640.91020.84970.80190.7813
DEPI 0.95720.97961.04861.04721.01460.96530.9610.93790.45490.486
SGAI -0.1839-16.938228.836137.590811.9895-2.4481-1.2597-0.60900
LVGI 0.9631.00880.97831.03121.00061.03581.0741.07641.19391.1216
TATA -0.0451-0.0411-0.03-0.0349-0.0289-0.0286-0.0233-0.0359-0.1043-0.1178
M-score -2.98-0.41-8.39-9.90-5.22-2.74-2.87-3.12-23.97-9.47
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