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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
The historical rank and industry rank for Precision Castparts's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Precision Castparts was 0.00. The lowest was 0.00. And the median was 0.00.
The historical data trend for Precision Castparts's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Precision Castparts Annual Data | |||||||||||||||||||||
Trend | Mar06 | Mar07 | Mar08 | Mar09 | Mar10 | Mar11 | Mar12 | Mar13 | Mar14 | Mar15 | |||||||||||
Beneish M-Score | Get a 7-Day Free Trial | -2.32 | -2.15 | -2.73 | -2.47 | -2.46 |
Precision Castparts Quarterly Data | ||||||||||||||||||||
Dec10 | Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | |
Beneish M-Score | Get a 7-Day Free Trial | -2.46 | -2.33 | -2.46 | -2.58 | -2.55 |
For the Metal Fabrication subindustry, Precision Castparts's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Industrial Products industry and Industrials sector, Precision Castparts's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Precision Castparts's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Precision Castparts 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 * 1.006 | + | 0.528 * 1.1222 | + | 0.404 * 0.9817 | + | 0.892 * 0.9764 | + | 0.115 * 0.9846 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.078 | + | 4.679 * -0.016791 | - | 0.327 * 1.0581 | |||||||
= | -2.55 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
This Year (Sep15) TTM: | Last Year (Sep14) TTM: |
Total Receivables was $1,653 Mil. Revenue was 2287 + 2412 + 2504 + 2459 = $9,662 Mil. Gross Profit was 715 + 787 + 667 + 830 = $2,999 Mil. Total Current Assets was $6,152 Mil. Total Assets was $20,189 Mil. Property, Plant and Equipment(Net PPE) was $2,588 Mil. Depreciation, Depletion and Amortization(DDA) was $337 Mil. Selling, General, & Admin. Expense(SGA) was $662 Mil. Total Current Liabilities was $2,013 Mil. Long-Term Debt & Capital Lease Obligation was $4,491 Mil. Net Income was 343 + 399 + 135 + 445 = $1,322 Mil. Non Operating Income was 0 + 0 + -8 + 0 = $-8 Mil. Cash Flow from Operations was 262 + 446 + 460 + 501 = $1,669 Mil. |
Total Receivables was $1,683 Mil. Revenue was 2522 + 2520 + 2516 + 2338 = $9,896 Mil. Gross Profit was 864 + 893 + 885 + 805 = $3,447 Mil. Total Current Assets was $5,855 Mil. Total Assets was $19,562 Mil. Property, Plant and Equipment(Net PPE) was $2,407 Mil. Depreciation, Depletion and Amortization(DDA) was $308 Mil. Selling, General, & Admin. Expense(SGA) was $629 Mil. Total Current Liabilities was $1,957 Mil. Long-Term Debt & Capital Lease Obligation was $3,999 Mil. |
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
= | (1653 / 9662) | / | (1683 / 9896) | |
= | 0.171083 | / | 0.170069 | |
= | 1.006 |
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) | |
= | (3447 / 9896) | / | (2999 / 9662) | |
= | 0.348323 | / | 0.310391 | |
= | 1.1222 |
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 Property, Plant and Equipment to Total Assets.
AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
= | (1 - (6152 + 2588) / 20189) | / | (1 - (5855 + 2407) / 19562) | |
= | 0.567091 | / | 0.577651 | |
= | 0.9817 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 | |
= | 9662 | / | 9896 | |
= | 0.9764 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
= | (308 / (308 + 2407)) | / | (337 / (337 + 2588)) | |
= | 0.113444 | / | 0.115214 | |
= | 0.9846 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
= | (662 / 9662) | / | (629 / 9896) | |
= | 0.068516 | / | 0.063561 | |
= | 1.078 |
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 in leverage
LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
= | ((4491 + 2013) / 20189) | / | ((3999 + 1957) / 19562) | |
= | 0.322156 | / | 0.304468 | |
= | 1.0581 |
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 | |
= | (1322 - -8 | - | 1669) | / | 20189 | |
= | -0.016791 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Precision Castparts has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Precision Castparts's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Ulrich Schmidt | director | PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239 |
Richard L Wambold | director | C/O PACTIV CORP, 1900 W FIELD COURT, LAKE FOREST IL 60045 |
Lester L Lyles | director | C/O MTC TECHNOLOGIES INC, 4032 LINDEN AVENUE, DAYTON OH 45432 |
Timothy A Wicks | director | C/O PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239 |
Andrew Masterman | officer: EVP, Pres. Wyman-Gordon | 401 PLYMOUTH ROAD, SUITE 500, PLYMOUTH MEETING PA 19462-1646 |
Kevin M Stein | officer: Exec VP | TRANSDIGM GROUP INCORPORATED, 1301 EAST 9TH STREET, SUITE 3000, CLEVELAND OH 44114 |
Steven G Rothmeier | director | C/O E.W BLANCH HOLDINGS INC, 500 N. AKARD #4500, DALLAS TX 75201 |
Russell S Pattee | officer: VP and Corporate Controller | PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239 |
Chris Ayers | officer: Exec. VP, Pres. PCC Forgings | 4650 S.W. MACADAM, SUITE #440, PORTLAND OR 97239 |
William D Larsson | officer: Sr. VP and CFO | 35 SHARPS CIRCLE, RENO NV 89519 |
Byron O Pond | director | C/O GSI GROUP INC., 125 MIDDLESEX TURNPIKE, BEDFORD MA 01730-1409 |
Wayne F Robbins | officer: President; PCC Flow Technologi | 4650 SW MACADAM, STE 440, PORTLAND OR 97239 |
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