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Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

MTD' s 10-Year Beneish M-Score Range
Min: -2.79   Max: -2.17
Current: -2.79

-2.79
-2.17

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International Inc was -2.17. The lowest was -2.79. 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 * 0.8933+0.528 * 0.9859+0.404 * 0.9588+0.892 * 1.045+0.115 * 0.9452
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0065+4.679 * -0.0381-0.327 * 1.1324
=-2.79

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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.
Net Income was 121.172 + 84.996 + 74.022 + 58.051 = $338 Mil.
Non Operating Income was -0.882 + -0.625 + -2.311 + -0.317 = $-4 Mil.
Cash Flow from Operations was 140.674 + 127.261 + 108.132 + 42.845 = $419 Mil.
Accounts Receivable was $467 Mil.
Revenue was 684.252 + 591.687 + 578.68 + 524.355 = $2,379 Mil.
Gross Profit was 375.357 + 318.573 + 308.843 + 279.158 = $1,282 Mil.
Total Current Assets was $914 Mil.
Total Assets was $2,153 Mil.
Property, Plant and Equipment(Net PPE) was $514 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $693 Mil.
Total Current Liabilities was $564 Mil.
Long-Term Debt was $396 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)
=(435.648 / 2485.983) / (466.703 / 2378.974)
=0.17524175 / 0.19617827
=0.8933

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)
=(343.551 / 2378.974) / (394.382 / 2485.983)
=0.53885877 / 0.54656448
=0.9859

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 - (849.43 + 511.462) / 2009.11) / (1 - (913.987 + 514.438) / 2152.819)
=0.32263938 / 0.33648625
=0.9588

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
=2485.983 / 2378.974
=1.045

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))
=(59.304 / (59.304 + 514.438)) / (62.802 / (62.802 + 511.462))
=0.10336353 / 0.10936085
=0.9452

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)
=(728.582 / 2485.983) / (692.693 / 2378.974)
=0.29307602 / 0.291173
=1.0065

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)
=((335.79 + 678.89) / 2009.11) / ((395.96 + 564.188) / 2152.819)
=0.50503954 / 0.44599569
=1.1324

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
=(338.241 - -4.135 - 418.912) / 2009.11
=-0.0381

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 -2.79 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.9861.01461.06231.05970.98231.05021.00320.98210.97050.8933
GMI 0.99990.99530.9860.98020.9820.98360.99040.99230.99140.9859
AQI 1.03860.96871.01210.98490.9860.98820.90960.93330.92120.9588
SGI 1.0351.01390.99340.99311.00831.0161.03211.04131.05141.045
DEPI 0.97731.03081.00871.04181.02071.0111.0171.00020.96250.9452
SGAI 0.97880.95880.96770.97570.9850.99670.99230.99210.99721.0065
LVGI 0.89090.91170.9470.96150.95070.99211.03291.02981.11871.1324
TATA -0.0197-0.0177-0.0183-0.0124-0.0197-0.0156-0.0223-0.0288-0.0263-0.0381
M-score -2.50-2.51-2.49-2.48-2.58-2.50-2.60-2.63-2.66-2.79
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