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Mettler-Toledo International, Inc. (NYSE:MTD)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

MTD' s 10-Year Beneish M-Score Range
Min: -2.78   Max: -2.17
Current: -2.51

-2.78
-2.17

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International, Inc. was -2.17. The lowest was -2.78. 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 * 1.0502+0.528 * 0.9835+0.404 * 0.9882+0.892 * 1.016+0.115 * 1.011
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9969+4.679 * -0.0171-0.327 * 0.9921
=-2.51

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $467 Mil.
Revenue was 684.253 + 591.686 + 578.68 + 524.353 = $2,379 Mil.
Gross Profit was 375.357 + 318.573 + 308.843 + 279.253 = $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.
Net Income was 110.162 + 74.326 + 69.062 + 52.544 = $306 Mil.
Non Operating Income was -0.822 + -0.521 + -0.987 + -0.773 = $-3 Mil.
Cash Flow from Operations was 108.513 + 122.783 + 90.96 + 23.672 = $346 Mil.
Accounts Receivable was $437 Mil.
Revenue was 657.292 + 578.553 + 570.283 + 535.4 = $2,342 Mil.
Gross Profit was 356.788 + 308.157 + 299.008 + 277.102 = $1,241 Mil.
Total Current Assets was $864 Mil.
Total Assets was $2,022 Mil.
Property, Plant and Equipment(Net PPE) was $469 Mil.
Depreciation, Depletion and Amortization(DDA) was $55 Mil.
Selling, General & Admin. Expense(SGA) was $684 Mil.
Total Current Liabilities was $562 Mil.
Long-Term Debt was $347 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)
=(466.703 / 2378.972) / (437.39 / 2341.528)
=0.19617843 / 0.18679683
=1.0502

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)
=(318.573 / 2341.528) / (375.357 / 2378.972)
=0.53001929 / 0.53889915
=0.9835

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 - (913.987 + 514.438) / 2152.819) / (1 - (864.237 + 469.421) / 2022.288)
=0.33648625 / 0.34052024
=0.9882

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
=2378.972 / 2341.528
=1.016

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))
=(54.778 / (54.778 + 469.421)) / (59.304 / (59.304 + 514.438))
=0.10449848 / 0.10336353
=1.011

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)
=(692.788 / 2378.972) / (684.026 / 2341.528)
=0.29121318 / 0.29212805
=0.9969

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)
=((395.96 + 564.188) / 2152.819) / ((347.131 + 561.994) / 2022.288)
=0.44599569 / 0.44955268
=0.9921

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
=(306.094 - -3.103 - 345.928) / 2152.819
=-0.0171

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 -2.51 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.00980.95021.0491.02740.89371.02481.03540.98211.01461.0502
GMI 0.97530.98630.9940.9920.99280.97830.97610.99890.99530.9835
AQI 0.98740.84191.11291.02430.95821.0340.77011.03730.96870.9882
SGI 1.07671.05561.07581.12471.10010.87611.13841.17331.01391.016
DEPI 0.99260.94541.03771.05781.09311.0511.06481.01071.03081.011
SGAI 1.04580.99681.01370.97670.99610.99451.02371.01860.95880.9969
LVGI 0.92611.29780.96351.07881.04920.78021.30730.92850.91170.9921
TATA -0.0392-0.0287-0.0264-0.0301-0.0176-0.0357-0.0158-0.0052-0.0177-0.0171
M-score -2.59-2.78-2.43-2.49-2.60-2.65-2.60-2.33-2.51-2.51

Mettler-Toledo International, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.00490.98210.93020.94590.9861.01461.06231.05970.98231.0502
GMI 0.99520.99891.00221.00460.99990.99530.98590.98010.9820.9835
AQI 0.88181.03731.06221.05731.03860.96871.01210.98490.9860.9882
SGI 1.19431.17331.14421.09911.0351.01390.99340.99311.00831.016
DEPI 1.10181.01070.97430.89450.97731.03081.00871.04181.02071.011
SGAI 1.01761.01861.00871.00070.97880.95880.96780.97580.98510.9969
LVGI 1.13930.92850.87790.91580.89090.91170.9470.96150.95070.9921
TATA 0.0053-0.0041-0.008-0.0099-0.0175-0.0177-0.0183-0.0139-0.0212-0.0171
M-score -2.36-2.33-2.39-2.45-2.49-2.51-2.49-2.49-2.58-2.51
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