Switch to:
Oil-Dri Corporation of America (NYSE:ODC)
Beneish M-Score
-1.94 (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 Corporation of America has a M-score of -1.94 signals that the company is a manipulator.

ODC' s 10-Year Beneish M-Score Range
Min: -3.37   Max: -1.94
Current: -1.94

-3.37
-1.94

During the past 13 years, the highest Beneish M-Score of Oil-Dri Corporation of America was -1.94. The lowest was -3.37. And the median was -2.72.


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 Corporation 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 * 1.1142+0.528 * 1.029+0.404 * 1.7356+0.892 * 1.0717+0.115 * 1.0301
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9024+4.679 * -0.0005-0.327 * 0.8897
=-1.94

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $37.0 Mil.
Revenue was 69.305 + 63.546 + 63.892 + 64.152 = $260.9 Mil.
Gross Profit was 16.893 + 16.5 + 16.108 + 16.891 = $66.4 Mil.
Total Current Assets was $89.4 Mil.
Total Assets was $183.9 Mil.
Property, Plant and Equipment(Net PPE) was $69.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.3 Mil.
Selling, General & Admin. Expense(SGA) was $47.2 Mil.
Total Current Liabilities was $29.1 Mil.
Long-Term Debt was $18.9 Mil.
Net Income was 4.281 + 2.887 + 4.737 + 3.251 = $15.2 Mil.
Non Operating Income was 0.175 + -0.035 + -0.054 + 0.207 = $0.3 Mil.
Cash Flow from Operations was 3.052 + -0.652 + 4.092 + 8.463 = $15.0 Mil.
Accounts Receivable was $31.0 Mil.
Revenue was 61.122 + 61.417 + 61.116 + 59.78 = $243.4 Mil.
Gross Profit was 16.269 + 17.231 + 15.543 + 14.705 = $63.7 Mil.
Total Current Assets was $97.2 Mil.
Total Assets was $176.4 Mil.
Property, Plant and Equipment(Net PPE) was $65.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General & Admin. Expense(SGA) was $48.8 Mil.
Total Current Liabilities was $29.4 Mil.
Long-Term Debt was $22.4 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)
=(37.022 / 260.895) / (31.004 / 243.435)
=0.14190383 / 0.12736049
=1.1142

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)
=(16.5 / 243.435) / (16.893 / 260.895)
=0.26186867 / 0.25447786
=1.029

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 - (89.353 + 68.959) / 183.86) / (1 - (97.177 + 65.117) / 176.418)
=0.13895355 / 0.08005986
=1.7356

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
=260.895 / 243.435
=1.0717

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))
=(9.113 / (9.113 + 65.117)) / (9.331 / (9.331 + 68.959))
=0.12276708 / 0.11918508
=1.0301

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)
=(47.221 / 260.895) / (48.825 / 243.435)
=0.18099619 / 0.20056689
=0.9024

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)
=((18.9 + 29.127) / 183.86) / ((22.4 + 29.395) / 176.418)
=0.26121505 / 0.29359249
=0.8897

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
=(15.156 - 0.293 - 14.955) / 183.86
=-0.0005

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 Corporation of America has a M-score of -1.94 signals that the company is likely to 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.

Oil-Dri Corporation of America Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
DSRI 0.94850.96471.01261.03481.02560.90891.01071.03850.97460.9898
GMI 0.88321.08531.15770.86121.08660.94850.92151.02790.90010.9238
AQI 0.75051.00190.88380.96571.15111.0760.9230.78691.0730.9182
SGI 1.07211.01271.09231.03371.09541.01670.92721.03521.06141.0411
DEPI 1.02181.09741.14481.00170.90061.14331.04950.95250.88071.0544
SGAI 1.03610.91240.89341.1440.86561.02671.120.97121.22670.9657
LVGI 0.94150.88591.20640.91830.90320.81380.98141.17140.97450.9291
TATA -0.0936-0.0549-0.0436-0.0709-0.0192-0.0435-0.112-0.0258-0.1007-0.0498
M-score -3.05-2.65-2.59-2.83-2.31-2.68-3.14-2.66-2.99-2.72

Oil-Dri Corporation of America Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.07681.03181.09420.97460.95121.02680.93530.98980.97041.1142
GMI 1.02720.98570.93250.90010.86730.870.88530.92380.98291.029
AQI 0.77050.85560.87221.0731.05731.04791.11240.91821.00371.7356
SGI 1.03661.03861.06091.06141.05421.04451.04431.04111.0421.0717
DEPI 0.93920.93870.90710.88070.92370.95990.99891.05441.06491.0301
SGAI 1.03851.0371.08921.22671.1021.17921.11710.96571.02640.9024
LVGI 1.25950.9050.92690.97450.91880.95340.94260.92910.88620.8897
TATA -0.04-0.0434-0.0515-0.1007-0.1039-0.09-0.0975-0.0498-0.0307-0.0005
M-score -2.74-2.67-2.67-2.99-3.01-2.91-2.97-2.72-2.58-1.94
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)
Free 7-day Trial
FEEDBACK
Hide