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ArcelorMittal SA (NYSE:MT)
Beneish M-Score
-4.59 (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 -4.69 suggests that the company is not a manipulator.

MT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.59   Max: -0.31
Current: -4.59

-4.59
-0.31

During the past 13 years, the highest Beneish M-Score of ArcelorMittal SA was -0.31. The lowest was -4.59. And the median was -2.30.


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 * 0.9039+0.528 * -1.8705+0.404 * 0.9902+0.892 * 0.8019+0.115 * 1.0082
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * -0.1151-0.327 * 1.1939
=-4.69

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $2,679 Mil.
Revenue was 13981 + 15589 + 16890 + 17118 = $63,578 Mil.
Gross Profit was -51215 + 15589 + -14662 + 17118 = $-33,170 Mil.
Total Current Assets was $22,326 Mil.
Total Assets was $76,846 Mil.
Property, Plant and Equipment(Net PPE) was $35,700 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,192 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $18,041 Mil.
Long-Term Debt was $17,478 Mil.
Net Income was -6686 + -711 + 179 + -728 = $-7,946 Mil.
Non Operating Income was -997 + -379 + 881 + -758 = $-1,253 Mil.
Cash Flow from Operations was 1574 + 473 + 1019 + -915 = $2,151 Mil.
Accounts Receivable was $3,696 Mil.
Revenue was 18723 + 20067 + 20704 + 19788 = $79,282 Mil.
Gross Profit was 17741 + 20067 + 19773 + 19788 = $77,369 Mil.
Total Current Assets was $28,057 Mil.
Total Assets was $99,179 Mil.
Property, Plant and Equipment(Net PPE) was $46,593 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,203 Mil.
Selling, General & Admin. Expense(SGA) was $35,849 Mil.
Total Current Liabilities was $21,123 Mil.
Long-Term Debt was $17,275 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)
=(2679 / 63578) / (3696 / 79282)
=0.04213722 / 0.0466184
=0.9039

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)
=(15589 / 79282) / (-51215 / 63578)
=0.97587094 / -0.52172135
=-1.8705

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 - (22326 + 35700) / 76846) / (1 - (28057 + 46593) / 99179)
=0.2449054 / 0.2473205
=0.9902

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
=63578 / 79282
=0.8019

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))
=(4203 / (4203 + 46593)) / (3192 / (3192 + 35700))
=0.08274274 / 0.08207343
=1.0082

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 / 63578) / (35849 / 79282)
=0 / 0.45217073
=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)
=((17478 + 18041) / 76846) / ((17275 + 21123) / 99179)
=0.46221013 / 0.38715857
=1.1939

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
=(-7946 - -1253 - 2151) / 76846
=-0.1151

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 -4.69 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 1.83230.60830.59521.74750.77870.93570.87951.01860.7580.9039
GMI 1.1550.92541.2724.18790.40640.954281.78210.02160.6981-2.9708
AQI 1.62071.18641.08681.26310.9581.01260.96960.94771.03220.9851
SGI 2.09261.78731.18740.48841.27871.20440.89610.94330.9980.8019
DEPI 1.35180.59490.88861.09730.94110.93820.99340.95631.07420.9522
SGAI 1.33191.0271.02151.14210.70970.88531.04220.95610.991.0713
LVGI 1.02310.99091.03970.81881.10461.0211.0530.94191.00061.1939
TATA -0.0217-0.056-0.0453-0.0457-0.0112-0.0004-0.0815-0.0451-0.0289-0.1043
M-score -0.53-2.41-2.75-0.63-2.81-2.3739.55-3.24-2.98-5.42

ArcelorMittal SA Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.9981.01860.92520.88550.83980.7580.79540.89460.87840.9039
GMI -0.36950.0216-0.5106-0.8419-0.66520.05410.06960.13790.1819-1.8705
AQI 0.92490.94771.02091.06241.02591.02681.01580.98511.00570.9902
SGI 0.90320.94330.9781.01271.01910.9980.9640.91020.84970.8019
DEPI 1.00180.95630.97711.04671.04641.01460.96530.9610.93791.0082
SGAI 0.0634-0.1824-19.964519.313326.478111.9895-2.4481-1.2597-0.6090
LVGI 0.95560.94191.00880.97831.03121.00061.03581.0741.07641.1939
TATA -0.0865-0.0451-0.0411-0.03-0.0349-0.0289-0.0286-0.0323-0.0456-0.1151
M-score -3.55-3.040.05-6.80-8.03-5.22-2.74-2.91-3.12-4.69
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