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Mettler-Toledo International Inc (NYSE:MTD)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

MTD' s 10-Year Beneish M-Score Range
Min: -2.86   Max: -2.08
Current: -2.63

-2.86
-2.08

During the past 13 years, the highest Beneish M-Score of Mettler-Toledo International Inc was -2.08. The lowest was -2.86. 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 * 0.9821+0.528 * 0.9924+0.404 * 0.9333+0.892 * 1.0413+0.115 * 1.0002
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.992+4.679 * -0.0288-0.327 * 1.0298
=-2.63

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $427 Mil.
Revenue was 608.834 + 550.621 + 684.253 + 591.686 = $2,435 Mil.
Gross Profit was 328.176 + 292.641 + 375.357 + 318.573 = $1,315 Mil.
Total Current Assets was $886 Mil.
Total Assets was $2,143 Mil.
Property, Plant and Equipment(Net PPE) was $522 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $709 Mil.
Total Current Liabilities was $640 Mil.
Long-Term Debt was $345 Mil.
Net Income was 74.022 + 58.051 + 110.162 + 74.326 = $317 Mil.
Non Operating Income was -2.311 + -0.317 + -0.822 + -0.521 = $-4 Mil.
Cash Flow from Operations was 108.132 + 42.845 + 108.513 + 122.783 = $382 Mil.
Accounts Receivable was $418 Mil.
Revenue was 578.68 + 524.353 + 657.292 + 578.553 = $2,339 Mil.
Gross Profit was 308.843 + 279.253 + 356.788 + 308.157 = $1,253 Mil.
Total Current Assets was $875 Mil.
Total Assets was $2,133 Mil.
Property, Plant and Equipment(Net PPE) was $474 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $686 Mil.
Total Current Liabilities was $509 Mil.
Long-Term Debt was $444 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)
=(427.495 / 2435.394) / (418.031 / 2338.878)
=0.17553423 / 0.17873143
=0.9821

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)
=(292.641 / 2338.878) / (328.176 / 2435.394)
=0.53574449 / 0.53984981
=0.9924

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 - (886.388 + 521.884) / 2143.42) / (1 - (875.376 + 474.05) / 2133.437)
=0.34297898 / 0.3674873
=0.9333

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
=2435.394 / 2338.878
=1.0413

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))
=(56.492 / (56.492 + 474.05)) / (62.179 / (62.179 + 521.884))
=0.10647979 / 0.10645941
=1.0002

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)
=(708.528 / 2435.394) / (685.954 / 2338.878)
=0.29092952 / 0.29328336
=0.992

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)
=((345.364 + 640.381) / 2143.42) / ((443.727 + 509.026) / 2133.437)
=0.45989353 / 0.44658127
=1.0298

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
=(316.561 - -3.971 - 382.273) / 2143.42
=-0.0288

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 -2.63 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 0.98740.84191.11291.02430.9571.03530.77011.03731.0520.9099
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 0.92611.29780.96351.07881.05350.77711.30730.92850.87141.038
TATA -0.0392-0.0287-0.0264-0.0301-0.0072-0.054-0.0176-0.0052-0.0174-0.0171
M-score -2.59-2.78-2.43-2.49-2.55-2.74-2.61-2.33-2.46-2.56

Mettler-Toledo International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.93020.94590.9861.01461.06231.05970.98231.05021.00320.9821
GMI 1.00221.00460.99990.99530.98590.98010.9820.98350.99050.9924
AQI 1.06221.05731.03861.0521.01210.98490.9860.90990.90960.9333
SGI 1.14421.09911.0351.01390.99340.99311.00831.0161.03211.0413
DEPI 0.97430.89450.97731.03081.00871.04181.02071.0111.0171.0002
SGAI 1.00871.00070.97880.95880.96780.97580.98510.99690.99210.992
LVGI 0.87790.91580.89090.87140.9470.96150.95071.0381.03291.0298
TATA -0.0111-0.0131-0.021-0.017-0.0182-0.0138-0.0214-0.0171-0.0238-0.0288
M-score -2.41-2.46-2.51-2.46-2.49-2.49-2.58-2.56-2.61-2.63
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