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Oil-Dri Corp of America (NYSE:ODC)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

ODC' s 10-Year Beneish M-Score Range
Min: -3.24   Max: -1.94
Current: -2.89

-3.24
-1.94

During the past 13 years, the highest Beneish M-Score of Oil-Dri Corp of America was -1.94. The lowest was -3.24. 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 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 * 0.8605+0.528 * 1.2165+0.404 * 1.077+0.892 * 1.0125+0.115 * 0.9472
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9512+4.679 * -0.1015-0.327 * 0.896
=-2.89

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $32.3 Mil.
Revenue was 64.643 + 66.044 + 66.045 + 67.417 = $264.1 Mil.
Gross Profit was 15.233 + 13.769 + 12.373 + 13.884 = $55.3 Mil.
Total Current Assets was $77.0 Mil.
Total Assets was $184.3 Mil.
Property, Plant and Equipment(Net PPE) was $79.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.5 Mil.
Selling, General & Admin. Expense(SGA) was $45.5 Mil.
Total Current Liabilities was $27.7 Mil.
Long-Term Debt was $15.4 Mil.
Net Income was 2.797 + 2.12 + 0.466 + 0.722 = $6.1 Mil.
Non Operating Income was -0.09 + 0.084 + 0.078 + 0.247 = $0.3 Mil.
Cash Flow from Operations was 8.859 + 1.748 + 5.586 + 8.31 = $24.5 Mil.
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.



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)
=(32.255 / 264.149) / (37.022 / 260.895)
=0.12210911 / 0.14190383
=0.8605

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)
=(13.769 / 260.895) / (15.233 / 264.149)
=0.25447786 / 0.20919632
=1.2165

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 - (77.028 + 79.702) / 184.314) / (1 - (89.353 + 68.959) / 183.86)
=0.14965765 / 0.13895355
=1.077

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
=264.149 / 260.895
=1.0125

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))
=(9.331 / (9.331 + 68.959)) / (11.472 / (11.472 + 79.702))
=0.11918508 / 0.12582534
=0.9472

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)
=(45.476 / 264.149) / (47.221 / 260.895)
=0.17216041 / 0.18099619
=0.9512

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)
=((15.417 + 27.72) / 184.314) / ((18.9 + 29.127) / 183.86)
=0.23404082 / 0.26121505
=0.896

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
=(6.105 - 0.319 - 24.503) / 184.314
=-0.1015

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 -2.89 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.

Oil-Dri Corp of America Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
DSRI 0.96471.01261.03481.02560.90891.01071.03850.97460.98980.9364
GMI 1.08531.15770.86121.08660.94850.92151.02790.90010.92381.1848
AQI 1.00190.88380.96571.15111.0760.9230.78691.0730.91821.9387
SGI 1.01271.09231.03371.09541.01670.92721.03521.06141.04111.0628
DEPI 1.09741.14481.00170.90061.14331.04950.95250.88071.05440.9786
SGAI 0.91240.89341.1440.86561.02671.120.97121.22670.96570.9345
LVGI 0.88591.20640.91830.90320.81380.98141.17140.97450.92910.8861
TATA -0.0549-0.0436-0.0709-0.0192-0.0435-0.112-0.0258-0.1007-0.0498-0.0451
M-score -2.65-2.59-2.83-2.31-2.68-3.14-2.66-2.99-2.72-2.17

Oil-Dri Corp of America Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.95121.02680.93530.98980.97041.11421.03480.93640.94490.8605
GMI 0.86730.870.88530.92380.98291.0291.10891.18481.22911.2165
AQI 1.05731.04791.11240.91821.00371.73561.55671.93871.89641.077
SGI 1.05421.04451.04431.04111.0421.07171.0661.06281.06371.0125
DEPI 0.92370.95990.99891.05441.06491.03011.00190.97860.94380.9472
SGAI 1.1021.17921.11710.96571.02640.90240.91170.93450.87830.9512
LVGI 0.91880.95340.94260.92910.88620.88970.90570.88610.88360.896
TATA -0.1039-0.09-0.0975-0.0498-0.0307-0.0005-0.0136-0.0451-0.0647-0.1015
M-score -3.01-2.91-2.97-2.72-2.58-1.94-2.12-2.17-2.24-2.89
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