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Enpro Industries Inc (NYSE:NPO)
Beneish M-Score
-2.47 (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.

Enpro Industries Inc has a M-score of -2.47 suggests that the company is not a manipulator.

NPO' s 10-Year Beneish M-Score Range
Min: -3.59   Max: -1.89
Current: -2.47

-3.59
-1.89

During the past 13 years, the highest Beneish M-Score of Enpro Industries Inc was -1.89. The lowest was -3.59. And the median was -2.56.


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 Enpro Industries 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 * 1.0476+0.528 * 1.0006+0.404 * 0.8688+0.892 * 1.0265+0.115 * 0.9877
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0365+4.679 * 0.0077-0.327 * 1.0942
=-2.47

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $218 Mil.
Revenue was 302.6 + 313.1 + 287.2 + 275.5 = $1,178 Mil.
Gross Profit was 106.2 + 108.1 + 96.5 + 85.8 = $397 Mil.
Total Current Assets was $636 Mil.
Total Assets was $1,583 Mil.
Property, Plant and Equipment(Net PPE) was $180 Mil.
Depreciation, Depletion and Amortization(DDA) was $57 Mil.
Selling, General & Admin. Expense(SGA) was $306 Mil.
Total Current Liabilities was $277 Mil.
Long-Term Debt was $558 Mil.
Net Income was 8.6 + 8.3 + 1.3 + 5.2 = $23 Mil.
Non Operating Income was -4 + -2.5 + -4.2 + 0 = $-11 Mil.
Cash Flow from Operations was 3.9 + 11.2 + -25 + 31.8 = $22 Mil.
Accounts Receivable was $203 Mil.
Revenue was 276 + 305.8 + 286.9 + 279.3 = $1,148 Mil.
Gross Profit was 92.1 + 109.2 + 94.2 + 91.1 = $387 Mil.
Total Current Assets was $444 Mil.
Total Assets was $1,422 Mil.
Property, Plant and Equipment(Net PPE) was $186 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $288 Mil.
Total Current Liabilities was $401 Mil.
Long-Term Debt was $284 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)
=(218.3 / 1178.4) / (203 / 1148)
=0.18525119 / 0.17682927
=1.0476

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)
=(108.1 / 1148) / (106.2 / 1178.4)
=0.33675958 / 0.33655804
=1.0006

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 - (636 + 180.3) / 1582.7) / (1 - (444.1 + 185.5) / 1422.3)
=0.4842358 / 0.55733671
=0.8688

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
=1178.4 / 1148
=1.0265

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))
=(57.6 / (57.6 + 185.5)) / (56.9 / (56.9 + 180.3))
=0.23693953 / 0.23988196
=0.9877

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)
=(306 / 1178.4) / (287.6 / 1148)
=0.25967413 / 0.25052265
=1.0365

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)
=((557.8 + 277) / 1582.7) / ((284.4 + 401.2) / 1422.3)
=0.52745309 / 0.48203614
=1.0942

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
=(23.4 - -10.7 - 21.9) / 1582.7
=0.0077

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.

Enpro Industries Inc has a M-score of -2.47 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.

Enpro Industries Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.971.09581.54850.87591.10880.73331.07540.89481.0676
GMI 0.94530.98320.9470.96921.03720.92831.09261.01471.0139
AQI 1.07920.97840.97711.01250.88420.96851.21751.02470.9425
SGI 1.01491.10711.10940.96490.8081.07721.2781.07120.9662
DEPI 1.01351.0011.01550.96860.99460.81070.96740.98860.9932
SGAI 0.92590.96471.36281.02561.51610.68680.80830.97121.0339
LVGI 1.02450.94891.03050.92821.05591.60291.01510.98681.0221
TATA -0.02190.089-0.0443-0.0316-0.19150.0574-0.032-0.0554-0.026
M-score -2.59-1.87-2.19-2.77-3.58-2.60-2.15-2.75-2.60

Enpro Industries Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.91780.93050.89480.96630.94720.97021.06761.06921.14091.0476
GMI 1.09761.03941.01471.02390.98821.00451.01390.9961.01771.0006
AQI 1.03530.98561.02471.04661.01421.00590.94250.93460.91810.8688
SGI 1.28951.14691.07121.01060.98170.97590.96620.9870.98981.0265
DEPI 0.89190.91880.98860.99890.97630.99630.99321.00251.00490.9877
SGAI 0.89240.96810.97120.9860.99831.00651.03391.03771.06351.0365
LVGI 1.09491.01410.98681.03180.95360.97341.02210.94470.90441.0942
TATA -0.0263-0.048-0.0554-0.0434-0.0554-0.0464-0.026-0.0225-0.0160.0077
M-score -2.38-2.63-2.75-2.68-2.79-2.73-2.60-2.55-2.44-2.47
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