Switch to:
GuruFocus has detected 5 Warning Signs with Mettler-Toledo International Inc $MTD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.55 (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 -2.55 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: -2.55

-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 * 1.0562+0.528 * 0.9861+0.404 * 0.9875+0.892 * 1.0471+0.115 * 1.0129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9984+4.679 * -0.0203-0.327 * 1.1669
=-2.55

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $455 Mil.
Revenue was 709.699 + 650.598 + 608.286 + 539.674 = $2,508 Mil.
Gross Profit was 418.61 + 369.494 + 347.576 + 299.907 = $1,436 Mil.
Total Current Assets was $897 Mil.
Total Assets was $2,167 Mil.
Property, Plant and Equipment(Net PPE) was $564 Mil.
Depreciation, Depletion and Amortization(DDA) was $69 Mil.
Selling, General & Admin. Expense(SGA) was $733 Mil.
Total Current Liabilities was $588 Mil.
Long-Term Debt was $875 Mil.
Net Income was 137.776 + 101.332 + 79.588 + 65.674 = $384 Mil.
Non Operating Income was -1.655 + -2.097 + -10.378 + -0.596 = $-15 Mil.
Cash Flow from Operations was 152.931 + 138.922 + 115.525 + 35.7 = $443 Mil.
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 $795 Mil.
Total Assets was $1,959 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 $558 Mil.
Long-Term Debt was $575 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)
=(454.988 / 2508.257) / (411.42 / 2395.447)
=0.18139609 / 0.17175083
=1.0562

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)
=(1351.993 / 2395.447) / (1435.587 / 2508.257)
=0.56440113 / 0.57234446
=0.9861

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 - (896.784 + 563.707) / 2166.777) / (1 - (795.332 + 517.229) / 1959.335)
=0.32596155 / 0.33009873
=0.9875

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
=2508.257 / 2395.447
=1.0471

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))
=(64.038 / (64.038 + 517.229)) / (68.795 / (68.795 + 563.707))
=0.11016968 / 0.10876645
=1.0129

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)
=(732.622 / 2508.257) / (700.81 / 2395.447)
=0.2920841 / 0.29255918
=0.9984

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)
=((875.056 + 587.515) / 2166.777) / ((575.138 + 558.212) / 1959.335)
=0.6749984 / 0.57843605
=1.1669

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
=(384.37 - -14.726 - 443.078) / 2166.777
=-0.0203

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 -2.55 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 local exchange's currency.

Mettler-Toledo International Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.02740.89371.02481.03540.98211.01461.05020.89330.98011.0562
GMI 0.9920.99280.97830.97610.99890.99530.98360.98590.96840.9861
AQI 1.02430.95821.0340.77011.03730.96870.98820.95881.02310.9875
SGI 1.12471.10010.87611.13841.17331.01391.0161.0450.96361.0471
DEPI 1.05781.09311.0511.06481.01071.03081.0110.94520.99271.0129
SGAI 0.97670.99610.99451.02371.01860.95880.99671.00650.99820.9984
LVGI 1.07881.04920.78021.30730.92850.91170.99211.13241.14531.1669
TATA -0.0301-0.0221-0.0487-0.0246-0.0041-0.0177-0.0171-0.0361-0.0325-0.0203
M-score -2.49-2.62-2.71-2.64-2.33-2.51-2.51-2.78-2.74-2.55

Mettler-Toledo International Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.97050.89330.87540.93790.97150.98011.04311.02161.0391.0562
GMI 0.99140.98590.97510.97050.96690.96840.97950.97930.9840.9861
AQI 0.92120.95880.96620.92060.95411.02310.96590.99421.02890.9875
SGI 1.05141.0451.02741.00370.97840.96360.9710.99241.02181.0471
DEPI 0.96250.94520.95540.98370.98930.99270.99610.95910.98091.0129
SGAI 0.99721.00651.01591.01411.0060.99820.98360.99170.99470.9984
LVGI 1.11871.13241.181.22841.20731.14531.13741.10271.11941.1669
TATA -0.0251-0.0361-0.043-0.0377-0.0356-0.0325-0.0185-0.0181-0.0172-0.0203
M-score -2.66-2.78-2.86-2.84-2.80-2.74-2.62-2.60-2.54-2.55
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK