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NCR Corp (NYSE:NCR)
Beneish M-Score
-2.97 (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.

NCR Corp has a M-score of -2.97 suggests that the company is not a manipulator.

NCR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Max: -2.09
Current: -2.97

-3.11
-2.09

During the past 13 years, the highest Beneish M-Score of NCR Corp was -2.09. The lowest was -3.11. And the median was -2.57.


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 NCR Corp 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 * 0.9518+0.528 * 1.1322+0.404 * 1.0298+0.892 * 0.9682+0.115 * 0.8797
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0838+4.679 * -0.0969-0.327 * 1.0552
=-2.97

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,304 Mil.
Revenue was 1444 + 1680 + 1613 + 1604 = $6,341 Mil.
Gross Profit was 380 + 476 + 457 + 146 = $1,459 Mil.
Total Current Assets was $2,705 Mil.
Total Assets was $7,752 Mil.
Property, Plant and Equipment(Net PPE) was $302 Mil.
Depreciation, Depletion and Amortization(DDA) was $321 Mil.
Selling, General & Admin. Expense(SGA) was $1,041 Mil.
Total Current Liabilities was $1,984 Mil.
Long-Term Debt was $3,269 Mil.
Net Income was 32 + 28 + 98 + -344 = $-186 Mil.
Non Operating Income was -10 + -43 + -7 + 0 = $-60 Mil.
Cash Flow from Operations was 23 + 265 + 170 + 167 = $625 Mil.
Accounts Receivable was $1,415 Mil.
Revenue was 1476 + 1768 + 1647 + 1658 = $6,549 Mil.
Gross Profit was 390 + 432 + 404 + 480 = $1,706 Mil.
Total Current Assets was $3,102 Mil.
Total Assets was $8,513 Mil.
Property, Plant and Equipment(Net PPE) was $351 Mil.
Depreciation, Depletion and Amortization(DDA) was $291 Mil.
Selling, General & Admin. Expense(SGA) was $992 Mil.
Total Current Liabilities was $2,024 Mil.
Long-Term Debt was $3,443 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)
=(1304 / 6341) / (1415 / 6549)
=0.2056458 / 0.21606352
=0.9518

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)
=(476 / 6549) / (380 / 6341)
=0.26049779 / 0.23008989
=1.1322

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 - (2705 + 302) / 7752) / (1 - (3102 + 351) / 8513)
=0.6121001 / 0.59438506
=1.0298

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
=6341 / 6549
=0.9682

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))
=(291 / (291 + 351)) / (321 / (321 + 302))
=0.45327103 / 0.5152488
=0.8797

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)
=(1041 / 6341) / (992 / 6549)
=0.16416969 / 0.15147351
=1.0838

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)
=((3269 + 1984) / 7752) / ((3443 + 2024) / 8513)
=0.67763158 / 0.64219429
=1.0552

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
=(-186 - -60 - 625) / 7752
=-0.0969

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.

NCR Corp has a M-score of -2.97 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.

NCR Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.7751.0590.73161.1310.99120.99030.99381.12020.9740.9196
GMI 1.01440.96680.94011.16250.95710.95930.88840.8261.08141.14
AQI 0.80680.95381.13231.0760.94861.45430.86011.01051.41231.0483
SGI 1.00461.08471.06940.86771.04491.12951.05271.06861.07640.9669
DEPI 0.9250.95680.99491.01181.06140.77220.90.94290.88930.8543
SGAI 0.94210.96420.97471.04251.04311.01381.05490.91171.07941.0649
LVGI 1.07680.96761.03960.85160.9611.32211.31911.12491.00381.0211
TATA -0.018-0.0172-0.0313-0.0186-0.0259-0.05190.07130.0218-0.0346-0.105
M-score -2.86-2.46-2.80-2.41-2.60-2.59-2.35-2.33-2.42-3.02

NCR Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.12021.18651.0960.98320.9740.93360.92951.01280.91960.9518
GMI 0.8260.83740.85110.89761.08141.10091.37161.27791.141.1322
AQI 1.01051.14911.16031.21111.41231.03841.01491.01551.04831.0298
SGI 1.06861.05681.05511.06531.07641.0511.02220.99510.96690.9682
DEPI 0.94290.92920.92570.89630.88930.81840.84350.85660.85430.8797
SGAI 0.91170.90830.8970.90321.07941.06411.17571.17921.06491.0838
LVGI 1.12491.15361.12521.14191.00380.9621.00450.9781.02111.0552
TATA 0.02180.01910.0068-0.0127-0.0346-0.0422-0.1095-0.1082-0.105-0.0969
M-score -2.33-2.24-2.36-2.51-2.42-2.64-2.88-2.87-3.02-2.97
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