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Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

MTD' s Beneish M-Score Range Over the Past 10 Years
Min: -7.87   Max: 1.48
Current: -2.78

-7.87
1.48

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International Inc was 1.48. The lowest was -7.87. And the median was -2.51.


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 * 0.9801+0.528 * 0.9684+0.404 * 0.9803+0.892 * 0.9636+0.115 * 0.9927
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9982+4.679 * -0.0371-0.327 * 1.1498
=-2.78

* 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 $411 Mil.
Revenue was 673.535 + 604.154 + 582.057 + 535.701 = $2,395 Mil.
Gross Profit was 390.747 + 339.529 + 322.912 + 298.805 = $1,352 Mil.
Total Current Assets was $863 Mil.
Total Assets was $2,018 Mil.
Property, Plant and Equipment(Net PPE) was $517 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $701 Mil.
Total Current Liabilities was $595 Mil.
Long-Term Debt was $577 Mil.
Net Income was 123.351 + 88.861 + 77.557 + 63.051 = $353 Mil.
Non Operating Income was 5.197 + -2.553 + -1.687 + -0.09 = $1 Mil.
Cash Flow from Operations was 137.042 + 126.041 + 105.189 + 58.596 = $427 Mil.
Accounts Receivable was $436 Mil.
Revenue was 697.428 + 629.1 + 608.834 + 550.621 = $2,486 Mil.
Gross Profit was 394.382 + 343.551 + 328.176 + 292.641 = $1,359 Mil.
Total Current Assets was $849 Mil.
Total Assets was $2,009 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 $679 Mil.
Long-Term Debt was $336 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)
=(411.42 / 2395.447) / (435.648 / 2485.983)
=0.17175083 / 0.17524175
=0.9801

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)
=(339.529 / 2485.983) / (390.747 / 2395.447)
=0.54656448 / 0.56440113
=0.9684

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 - (862.815 + 517.229) / 2018.485) / (1 - (849.43 + 511.462) / 2009.11)
=0.31629712 / 0.32263938
=0.9803

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
=2395.447 / 2485.983
=0.9636

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))
=(62.802 / (62.802 + 511.462)) / (64.038 / (64.038 + 517.229))
=0.10936085 / 0.11016968
=0.9927

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)
=(700.81 / 2395.447) / (728.582 / 2485.983)
=0.29255918 / 0.29307602
=0.9982

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)
=((576.984 + 595.127) / 2018.485) / ((335.79 + 678.89) / 2009.11)
=0.58068849 / 0.50503954
=1.1498

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
=(352.82 - 0.867 - 426.868) / 2018.485
=-0.0371

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 -2.78 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.0491.02740.89371.02481.03540.98211.01461.05020.89330.9801
GMI 0.9940.9920.99280.97830.97610.99890.99530.98350.9860.9684
AQI 1.11291.02430.95821.0340.77011.03730.96870.98820.95880.9803
SGI 1.07581.12471.10010.87611.13841.17331.01391.0161.0450.9636
DEPI 1.03771.05781.09311.0511.06481.01071.03081.0110.94520.9927
SGAI 1.01370.97670.99610.99451.02371.01860.95880.99691.00640.9982
LVGI 0.96351.07881.04920.78021.30730.92850.91170.99211.13241.1498
TATA -1.1881-0.0301-0.0072-0.0305-0.0228-0.0157-0.0295-0.0171-0.039-0.0371
M-score -7.87-2.49-2.55-2.63-2.63-2.38-2.57-2.51-2.80-2.78

Mettler-Toledo International Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.05021.00320.98210.97050.89330.87540.93790.97150.98011.0431
GMI 0.98360.99040.99230.99140.98590.97510.97050.96690.96840.9795
AQI 0.98820.90960.93330.92120.95880.96620.92060.95410.98030.9659
SGI 1.0161.03211.04131.05141.0451.02741.00370.97840.96360.971
DEPI 1.0111.0171.00020.96250.94520.95540.98370.98930.99270.9961
SGAI 0.99670.99230.99210.99721.00651.01591.01411.0060.99820.9836
LVGI 0.99211.03291.02981.11871.13241.181.22841.20731.14981.1374
TATA -0.0156-0.0216-0.0281-0.0251-0.039-0.046-0.0406-0.0385-0.0371-0.0245
M-score -2.50-2.60-2.63-2.66-2.80-2.88-2.85-2.81-2.78-2.65
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