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Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.87 (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.

Mettler-Toledo International Inc has a M-score of -2.87 suggests that the company is not a manipulator.

MTD' s 10-Year Beneish M-Score Range
Min: -2.87   Max: -2.08
Current: -2.87

-2.87
-2.08

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International Inc was -2.08. The lowest was -2.87. And the median was -2.50.


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 Mettler-Toledo International Inc 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 * 0.8754+0.528 * 0.9751+0.404 * 0.9662+0.892 * 1.0274+0.115 * 0.9554
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0159+4.679 * -0.0443-0.327 * 1.18
=-2.87

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $382 Mil.
Revenue was 535.701 + 697.428 + 629.1 + 608.834 = $2,471 Mil.
Gross Profit was 298.805 + 394.382 + 343.551 + 328.176 = $1,365 Mil.
Total Current Assets was $815 Mil.
Total Assets was $1,976 Mil.
Property, Plant and Equipment(Net PPE) was $511 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $729 Mil.
Total Current Liabilities was $638 Mil.
Long-Term Debt was $409 Mil.
Net Income was 63.051 + 121.172 + 84.996 + 74.022 = $343 Mil.
Non Operating Income was -0.09 + -0.882 + -0.625 + -2.311 = $-4 Mil.
Cash Flow from Operations was 58.596 + 140.674 + 127.261 + 108.132 = $435 Mil.
Accounts Receivable was $425 Mil.
Revenue was 550.621 + 684.252 + 591.687 + 578.68 = $2,405 Mil.
Gross Profit was 292.641 + 375.357 + 318.573 + 308.843 = $1,295 Mil.
Total Current Assets was $890 Mil.
Total Assets was $2,135 Mil.
Property, Plant and Equipment(Net PPE) was $518 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $699 Mil.
Total Current Liabilities was $509 Mil.
Long-Term Debt was $450 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)
=(382.385 / 2471.063) / (425.161 / 2405.24)
=0.15474514 / 0.17676448
=0.8754

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)
=(394.382 / 2405.24) / (298.805 / 2471.063)
=0.53857993 / 0.55235905
=0.9751

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 - (814.85 + 510.518) / 1975.665) / (1 - (890.105 + 517.686) / 2135.137)
=0.32915347 / 0.34065542
=0.9662

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
=2471.063 / 2405.24
=1.0274

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))
=(60.815 / (60.815 + 517.686)) / (63.117 / (63.117 + 510.518))
=0.10512514 / 0.1100299
=0.9554

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)
=(729.429 / 2471.063) / (698.859 / 2405.24)
=0.29518835 / 0.29055687
=1.0159

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)
=((409.179 + 637.703) / 1975.665) / ((449.582 + 509.195) / 2135.137)
=0.52988842 / 0.44904706
=1.18

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
=(343.241 - -3.908 - 434.663) / 1975.665
=-0.0443

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.

Mettler-Toledo International Inc has a M-score of -2.87 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.

Mettler-Toledo International Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.95021.0491.02740.89371.02481.03540.98211.01461.05020.8933
GMI 0.98630.9940.9920.99280.97830.97610.99890.99530.98360.9859
AQI 0.84191.11291.02430.95821.0340.77011.03730.96870.98820.9588
SGI 1.05561.07581.12471.10010.87611.13841.17331.01391.0161.045
DEPI 0.94541.03771.05781.09311.0511.06481.01071.03081.0110.9452
SGAI 0.99681.01370.97670.99610.99451.02371.01860.95880.99671.0065
LVGI 1.29780.96351.07881.04920.78021.30730.92850.91170.99211.1324
TATA -0.0287-0.0264-0.0301-0.0176-0.0357-0.0158-0.0052-0.0177-0.0171-0.039
M-score -2.78-2.43-2.49-2.60-2.65-2.60-2.33-2.51-2.51-2.80

Mettler-Toledo International Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.01461.06231.05970.98231.05021.00320.98210.97050.89330.8754
GMI 0.99530.9860.98020.9820.98360.99040.99230.99140.98590.9751
AQI 0.96871.01210.98490.9860.98820.90960.93330.92120.95880.9662
SGI 1.01390.99340.99311.00831.0161.03211.04131.05141.0451.0274
DEPI 1.03081.00871.04181.02071.0111.0171.00020.96250.94520.9554
SGAI 0.95880.96770.97570.9850.99670.99230.99210.99721.00651.0159
LVGI 0.91170.9470.96150.95070.99211.03291.02981.11871.13241.18
TATA -0.0177-0.0183-0.0124-0.0197-0.0156-0.0216-0.0281-0.0256-0.0374-0.0443
M-score -2.51-2.49-2.48-2.58-2.50-2.60-2.63-2.66-2.79-2.87
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