Switch to:
Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

MTD' s Beneish M-Score Range Over the Past 10 Years
Min: -8.07   Max: 1.48
Current: -2.57

-8.07
1.48

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International Inc was 1.48. The lowest was -8.07. And the median was -2.53.


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 * 1.039+0.528 * 0.984+0.404 * 1.0289+0.892 * 1.0218+0.115 * 0.9809
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9947+4.679 * -0.0222-0.327 * 1.1194
=-2.57

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $415 Mil.
Revenue was 650.598 + 608.286 + 539.674 + 673.535 = $2,472 Mil.
Gross Profit was 369.494 + 347.576 + 299.907 + 390.747 = $1,408 Mil.
Total Current Assets was $946 Mil.
Total Assets was $2,221 Mil.
Property, Plant and Equipment(Net PPE) was $527 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $722 Mil.
Total Current Liabilities was $621 Mil.
Long-Term Debt was $826 Mil.
Net Income was 101.332 + 79.588 + 65.674 + 123.351 = $370 Mil.
Non Operating Income was -2.097 + -10.378 + -0.596 + 5.197 = $-8 Mil.
Cash Flow from Operations was 138.922 + 115.525 + 35.7 + 137.042 = $427 Mil.
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.



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)
=(414.607 / 2472.093) / (390.54 / 2419.34)
=0.16771497 / 0.16142419
=1.039

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)
=(1355.628 / 2419.34) / (1407.724 / 2472.093)
=0.56032968 / 0.56944621
=0.984

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 - (946.102 + 527.477) / 2220.98) / (1 - (868.315 + 513.568) / 2053.546)
=0.33651856 / 0.32707473
=1.0289

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
=2472.093 / 2419.34
=1.0218

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))
=(63.665 / (63.665 + 513.568)) / (66.824 / (66.824 + 527.477))
=0.11029342 / 0.11244134
=0.9809

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)
=(721.817 / 2472.093) / (710.181 / 2419.34)
=0.29198618 / 0.29354328
=0.9947

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)
=((826.022 + 620.849) / 2220.98) / ((601.731 + 593.415) / 2053.546)
=0.65145611 / 0.58199135
=1.1194

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
=(369.945 - -7.874 - 427.189) / 2220.98
=-0.0222

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 -2.57 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

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 1.11291.02430.95821.0340.77011.03731.0520.90990.95880.9803
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 0.96351.07881.04920.78021.30730.92850.87141.0381.13241.1498
TATA -1.1881-0.0301-0.0221-0.0305-0.0228-0.0157-0.0282-0.0171-0.039-0.0371
M-score -7.87-2.49-2.62-2.63-2.63-2.38-2.51-2.56-2.80-2.78

Mettler-Toledo International Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.98210.97050.89330.87540.93790.97150.98011.04311.02161.039
GMI 0.99240.99150.9860.97510.97050.96690.96840.97950.97930.984
AQI 0.93330.92120.95880.96620.92060.95410.98030.96590.99421.0289
SGI 1.04131.05141.0451.02741.00370.97840.96360.9710.99241.0218
DEPI 1.00020.96250.94520.95540.98370.98930.99270.99610.95910.9809
SGAI 0.9920.9971.00641.01591.01411.0060.99820.98360.99170.9947
LVGI 1.02981.11871.13241.181.22841.20731.14981.13741.10271.1194
TATA -0.0288-0.0263-0.0381-0.0443-0.0389-0.0364-0.0371-0.024-0.0235-0.0222
M-score -2.63-2.66-2.79-2.87-2.84-2.80-2.78-2.65-2.63-2.57
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