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Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.81 (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 -2.81 suggests that the company is not a manipulator.

MTD' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Max: -2.08
Current: -2.81

-2.88
-2.08

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International Inc was -2.08. The lowest was -2.88. 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 * 0.9715+0.528 * 0.9669+0.404 * 0.9541+0.892 * 0.9784+0.115 * 0.9893
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.006+4.679 * -0.0385-0.327 * 1.2073
=-2.81

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $391 Mil.
Revenue was 604.154 + 582.057 + 535.701 + 697.428 = $2,419 Mil.
Gross Profit was 339.529 + 322.912 + 298.805 + 394.382 = $1,356 Mil.
Total Current Assets was $868 Mil.
Total Assets was $2,054 Mil.
Property, Plant and Equipment(Net PPE) was $514 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General & Admin. Expense(SGA) was $710 Mil.
Total Current Liabilities was $593 Mil.
Long-Term Debt was $602 Mil.
Net Income was 88.861 + 77.557 + 63.051 + 121.172 = $351 Mil.
Non Operating Income was -2.553 + -1.687 + -0.09 + 3.565 = $-1 Mil.
Cash Flow from Operations was 126.041 + 105.189 + 58.596 + 140.674 = $431 Mil.
Accounts Receivable was $411 Mil.
Revenue was 629.1 + 608.834 + 550.621 + 684.252 = $2,473 Mil.
Gross Profit was 343.551 + 328.176 + 292.641 + 375.357 = $1,340 Mil.
Total Current Assets was $873 Mil.
Total Assets was $2,107 Mil.
Property, Plant and Equipment(Net PPE) was $512 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $722 Mil.
Total Current Liabilities was $651 Mil.
Long-Term Debt was $365 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)
=(390.54 / 2419.34) / (410.9 / 2472.807)
=0.16142419 / 0.16616744
=0.9715

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)
=(322.912 / 2472.807) / (339.529 / 2419.34)
=0.54178308 / 0.56032968
=0.9669

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 - (868.315 + 513.568) / 2053.546) / (1 - (872.912 + 512.091) / 2107.455)
=0.32707473 / 0.34280779
=0.9541

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
=2419.34 / 2472.807
=0.9784

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))
=(62.72 / (62.72 + 512.091)) / (63.665 / (63.665 + 513.568))
=0.10911413 / 0.11029342
=0.9893

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)
=(710.181 / 2419.34) / (721.581 / 2472.807)
=0.29354328 / 0.29180644
=1.006

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)
=((601.731 + 593.415) / 2053.546) / ((365.007 + 650.884) / 2107.455)
=0.58199135 / 0.48204635
=1.2073

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
=(350.641 - -0.765 - 430.5) / 2053.546
=-0.0385

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 -2.81 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 -0.0287-0.0264-0.0301-0.0176-0.0357-0.0158-0.0041-0.0177-0.0171-0.039
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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.05970.98231.05021.00320.98210.97050.89330.87540.93790.9715
GMI 0.98020.9820.98360.99040.99230.99140.98590.97510.97050.9669
AQI 0.98490.9860.98820.90960.93330.92120.95880.96620.92060.9541
SGI 0.99311.00831.0161.03211.04131.05141.0451.02741.00370.9784
DEPI 1.04181.02071.0111.0171.00020.96250.94520.95540.98370.9893
SGAI 0.97570.9850.99670.99230.99210.99721.00651.01591.01411.006
LVGI 0.96150.95070.99211.03291.02981.11871.13241.181.22841.2073
TATA -0.0124-0.0197-0.0156-0.0216-0.0281-0.0251-0.039-0.046-0.0406-0.0385
M-score -2.48-2.58-2.50-2.60-2.63-2.66-2.80-2.88-2.85-2.81
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