Switch to:
Newell Rubbermaid Inc (NYSE:NWL)
Beneish M-Score
-2.60 (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.

Newell Rubbermaid Inc has a M-score of -2.60 suggests that the company is not a manipulator.

NWL' s 10-Year Beneish M-Score Range
Min: -3.42   Max: -1.27
Current: -2.6

-3.42
-1.27

During the past 13 years, the highest Beneish M-Score of Newell Rubbermaid Inc was -1.27. The lowest was -3.42. And the median was -2.65.


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 Newell Rubbermaid 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 * 1.0261+0.528 * 0.9818+0.404 * 1.0095+0.892 * 1.0332+0.115 * 0.9877
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0794+4.679 * -0.0232-0.327 * 1.1495
=-2.60

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,304 Mil.
Revenue was 1560.9 + 1264 + 1526 + 1484.5 = $5,835 Mil.
Gross Profit was 621 + 487.5 + 574.1 + 576.7 = $2,259 Mil.
Total Current Assets was $2,753 Mil.
Total Assets was $6,959 Mil.
Property, Plant and Equipment(Net PPE) was $572 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $1,590 Mil.
Total Current Liabilities was $2,307 Mil.
Long-Term Debt was $2,081 Mil.
Net Income was 148.5 + 54.1 + 52 + 122.3 = $377 Mil.
Non Operating Income was 5 + -0.1 + -37.1 + -7.7 = $-40 Mil.
Cash Flow from Operations was 102.5 + -154.3 + 290.8 + 339.2 = $578 Mil.
Accounts Receivable was $1,230 Mil.
Revenue was 1502.2 + 1214.3 + 1465.3 + 1466.1 = $5,648 Mil.
Gross Profit was 595.6 + 457 + 541.7 + 552.5 = $2,147 Mil.
Total Current Assets was $2,459 Mil.
Total Assets was $6,218 Mil.
Property, Plant and Equipment(Net PPE) was $543 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General & Admin. Expense(SGA) was $1,426 Mil.
Total Current Liabilities was $1,986 Mil.
Long-Term Debt was $1,424 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)
=(1304.4 / 5835.4) / (1230.4 / 5647.9)
=0.22353223 / 0.21785088
=1.0261

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)
=(487.5 / 5647.9) / (621 / 5835.4)
=0.38010588 / 0.3871714
=0.9818

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 - (2753 + 572) / 6958.8) / (1 - (2458.6 + 543) / 6218.1)
=0.52218773 / 0.5172802
=1.0095

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
=5835.4 / 5647.9
=1.0332

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))
=(155 / (155 + 543)) / (165.9 / (165.9 + 572))
=0.22206304 / 0.22482721
=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)
=(1589.8 / 5835.4) / (1425.5 / 5647.9)
=0.27244062 / 0.2523947
=1.0794

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)
=((2080.9 + 2306.5) / 6958.8) / ((1424.2 + 1986.4) / 6218.1)
=0.63048227 / 0.54849552
=1.1495

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
=(376.9 - -39.9 - 578.2) / 6958.8
=-0.0232

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.

Newell Rubbermaid Inc has a M-score of -2.60 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.

Newell Rubbermaid Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.92190.92691.01370.82291.07011.10020.96881.16680.98861.1058
GMI 0.94390.92120.94761.07360.8930.96761.00990.98221.01020.985
AQI 1.33181.01081.02261.10911.02811.02490.96120.96990.98091.0347
SGI 1.00181.08461.03331.00990.8621.01451.03650.95151.00491.0214
DEPI 0.79290.89131.00540.90810.96860.94661.08351.00230.99411.0423
SGAI 1.06251.11111.02811.03991.06121.03821.00981.0010.9651.0815
LVGI 1.01770.93490.9181.13850.91710.99090.96730.93511.02161.1057
TATA -0.0645-0.04-0.0275-0.1124-0.0484-0.0123-0.0678-0.0334-0.0185-0.0261
M-score -2.79-2.71-2.56-3.14-2.80-2.45-2.79-2.53-2.58-2.52

Newell Rubbermaid Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.13661.11890.98360.98170.94431.00741.08871.11371.0531.0261
GMI 0.99260.99371.00531.00521.00321.00730.99470.98980.98180.9818
AQI 0.97220.99550.99030.98091.0121.01311.02911.03471.01941.0095
SGI 0.95370.98231.00021.0121.0091.0051.00671.01421.02781.0332
DEPI 0.96560.96690.97010.99411.02181.05161.03861.04231.01640.9877
SGAI 0.98980.97530.96170.9730.98280.99051.02971.07261.07411.0794
LVGI 0.96960.94570.91691.02160.98651.00041.12271.10571.16651.1495
TATA -0.0231-0.0159-0.0113-0.0185-0.0196-0.0179-0.0242-0.0253-0.022-0.0232
M-score -2.51-2.45-2.52-2.58-2.60-2.54-2.54-2.51-2.58-2.60
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)

GuruFocus Premium Plus Membership

FEEDBACK