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ArcelorMittal SA (NYSE:MT)
Beneish M-Score
-2.27 (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 -2.48 suggests that the company is not a manipulator.

MT' s 10-Year Beneish M-Score Range
Min: -83.81   Max: 0.11
Current: -2.27

-83.81
0.11

During the past 13 years, the highest Beneish M-Score of ArcelorMittal SA was 0.11. The lowest was -83.81. And the median was -2.36.


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 * 0.8946+0.528 * 0.1347+0.404 * 0.9851+0.892 * 0.9102+0.115 * 0.961
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * -3.767+4.679 * -0.0323-0.327 * 1.074
=-2.48

* 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 $4,283 Mil.
Revenue was 16890 + 17118 + 18723 + 20067 = $72,798 Mil.
Gross Profit was -14662 + 17118 + 18723 + 20067 = $41,246 Mil.
Total Current Assets was $26,887 Mil.
Total Assets was $91,932 Mil.
Property, Plant and Equipment(Net PPE) was $42,545 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,819 Mil.
Selling, General & Admin. Expense(SGA) was $50,561 Mil.
Total Current Liabilities was $19,553 Mil.
Long-Term Debt was $18,031 Mil.
Net Income was 179 + -728 + -955 + 22 = $-1,482 Mil.
Non Operating Income was 881 + -758 + -929 + -603 = $-1,409 Mil.
Cash Flow from Operations was 1019 + -915 + 2292 + 501 = $2,897 Mil.
Accounts Receivable was $5,260 Mil.
Revenue was 20704 + 19788 + 19848 + 19643 = $79,983 Mil.
Gross Profit was 19773 + 19788 + -51967 + 18508 = $6,102 Mil.
Total Current Assets was $31,538 Mil.
Total Assets was $109,603 Mil.
Property, Plant and Equipment(Net PPE) was $50,835 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,370 Mil.
Selling, General & Admin. Expense(SGA) was $-14,747 Mil.
Total Current Liabilities was $23,589 Mil.
Long-Term Debt was $18,132 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)
=(4283 / 72798) / (5260 / 79983)
=0.05883403 / 0.06576397
=0.8946

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)
=(17118 / 79983) / (-14662 / 72798)
=0.07629121 / 0.5665815
=0.1347

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 - (26887 + 42545) / 91932) / (1 - (31538 + 50835) / 109603)
=0.24474612 / 0.2484421
=0.9851

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
=72798 / 79983
=0.9102

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))
=(4370 / (4370 + 50835)) / (3819 / (3819 + 42545))
=0.0791595 / 0.08236994
=0.961

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)
=(50561 / 72798) / (-14747 / 79983)
=0.69453831 / -0.18437668
=-3.767

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)
=((18031 + 19553) / 91932) / ((18132 + 23589) / 109603)
=0.40882391 / 0.38065564
=1.074

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
=(-1482 - -1409 - 2897) / 91932
=-0.0323

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 -2.48 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.83531.83230.60830.59521.74750.77870.93570.87951.01860.758
GMI 1.45891.1550.92541.2724.18790.40640.954211.7180.15070.6981
AQI 0.99731.62071.18641.08681.26310.9581.01260.95050.96681.0322
SGI 1.36482.09261.78731.18740.48841.27871.20440.89610.94330.998
DEPI 1.60241.35180.59490.88861.09730.94110.93820.99250.95721.0742
SGAI 1.15111.33191.0271.02151.14210.70970.88531.040.95810.99
LVGI 0.97551.02310.99091.03970.81881.10461.0211.02990.9631.0006
TATA -0.027-0.0217-0.056-0.0453-0.0457-0.0112-0.0004-0.0779-0.057-0.0482
M-score -2.14-0.53-2.41-2.75-0.63-2.81-2.372.57-3.23-3.07

ArcelorMittal SA Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.89780.9750.9981.01860.92520.88550.83980.7580.79540.8946
GMI -3.5492-1.2484-0.41230.1521-0.4085-0.7516-0.59220.05290.06820.1347
AQI 0.92790.91090.92490.96681.02091.06241.02591.02681.01580.9851
SGI 0.860.85990.90320.94330.9781.01271.01910.9980.9640.9102
DEPI 0.97640.98861.00360.95720.97961.04861.04721.01460.96530.961
SGAI -0.06650.03290.0442-0.1839-16.938228.836116.697718.0636-3.6884-3.767
LVGI 0.9770.97890.95560.9631.00880.97831.03121.00061.03581.074
TATA -0.0748-0.0891-0.085-0.057-0.0532-0.0422-0.0477-0.0289-0.0286-0.0323
M-score -5.29-4.10-3.56-3.03-0.47-8.45-6.37-6.26-2.53-2.48
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