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Oil-Dri Corp of America (NYSE:ODC)
Beneish M-Score
-2.88 (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.

Oil-Dri Corp of America has a M-score of -2.88 suggests that the company is not a manipulator.

ODC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -2.17
Current: -2.88

-3.23
-2.17

During the past 13 years, the highest Beneish M-Score of Oil-Dri Corp of America was -2.17. The lowest was -3.23. And the median was -2.69.


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 Oil-Dri Corp of America 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 * 0.9623+0.528 * 0.7825+0.404 * 1.105+0.892 * 1.0035+0.115 * 0.9972
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.367+4.679 * -0.0562-0.327 * 0.9015
=-2.88

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $30.4 Mil.
Revenue was 64.916 + 64.235 + 65.367 + 67.795 = $262.3 Mil.
Gross Profit was 18.866 + 18.568 + 19.062 + 20.653 = $77.1 Mil.
Total Current Assets was $91.2 Mil.
Total Assets was $204.9 Mil.
Property, Plant and Equipment(Net PPE) was $80.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.2 Mil.
Selling, General & Admin. Expense(SGA) was $61.7 Mil.
Total Current Liabilities was $30.7 Mil.
Long-Term Debt was $12.3 Mil.
Net Income was 5.261 + -0.892 + 3.821 + 5.423 = $13.6 Mil.
Non Operating Income was -0.235 + 0.25 + -0.085 + 0.02 = $-0.0 Mil.
Cash Flow from Operations was 5.762 + 2.358 + 8.535 + 8.516 = $25.2 Mil.
Accounts Receivable was $31.5 Mil.
Revenue was 65.519 + 65.196 + 64.643 + 66.044 = $261.4 Mil.
Gross Profit was 16.722 + 14.433 + 15.233 + 13.769 = $60.2 Mil.
Total Current Assets was $82.6 Mil.
Total Assets was $190.0 Mil.
Property, Plant and Equipment(Net PPE) was $79.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.0 Mil.
Selling, General & Admin. Expense(SGA) was $45.0 Mil.
Total Current Liabilities was $28.9 Mil.
Long-Term Debt was $15.4 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)
=(30.386 / 262.313) / (31.466 / 261.402)
=0.11583871 / 0.12037398
=0.9623

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)
=(60.157 / 261.402) / (77.149 / 262.313)
=0.23013213 / 0.29411047
=0.7825

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 - (91.173 + 80.711) / 204.933) / (1 - (82.643 + 79.655) / 190.031)
=0.16126734 / 0.14593935
=1.105

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
=262.313 / 261.402
=1.0035

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))
=(11.994 / (11.994 + 79.655)) / (12.192 / (12.192 + 80.711))
=0.13086886 / 0.13123365
=0.9972

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)
=(61.736 / 262.313) / (45.004 / 261.402)
=0.23535242 / 0.17216395
=1.367

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)
=((12.333 + 30.74) / 204.933) / ((15.417 + 28.888) / 190.031)
=0.21018089 / 0.23314617
=0.9015

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
=(13.613 - -0.05 - 25.171) / 204.933
=-0.0562

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.

Oil-Dri Corp of America has a M-score of -2.88 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 local exchange's currency.

Oil-Dri Corp of America Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
DSRI 1.03481.02560.90891.01071.03850.97460.98980.93641.03420.9623
GMI 0.86121.08660.94850.92151.02790.90010.92381.18480.97330.7825
AQI 0.96571.15111.0760.9230.78691.0730.91821.93870.97781.105
SGI 1.03371.09541.01670.92721.03521.06141.04111.06280.98161.0035
DEPI 1.00170.90061.14331.04950.95250.88071.05440.97860.93140.9972
SGAI 1.1440.86561.02671.120.97121.22670.96570.93450.97071.367
LVGI 0.91830.90320.81380.98141.17140.97450.92910.88610.8970.9015
TATA -0.0709-0.0192-0.0435-0.112-0.0258-0.1007-0.0498-0.0451-0.0839-0.0562
M-score -2.83-2.31-2.68-3.14-2.66-2.99-2.72-2.17-2.85-2.88

Oil-Dri Corp of America Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.03480.93640.94490.86050.98121.03421.02140.9530.90890.9623
GMI 1.10891.18481.22911.21651.12620.97330.83110.77890.74690.7825
AQI 1.55671.93871.89641.0771.05480.97780.90790.90250.9571.105
SGI 1.0661.06281.06371.01250.99160.98160.9790.9991.00381.0035
DEPI 1.00190.97860.94380.94720.94680.93140.93840.96080.96810.9972
SGAI 0.91170.93450.87830.95120.94960.97071.0571.10021.26471.367
LVGI 0.90570.88610.88360.8960.90270.8970.93440.95490.92040.9015
TATA -0.0136-0.0451-0.0647-0.1015-0.0835-0.0839-0.1007-0.0904-0.0862-0.0562
M-score -2.12-2.17-2.24-2.89-2.77-2.85-3.07-3.11-3.14-2.88
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