SHW has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Sherwin-Williams Co was -2.15. The lowest was -3.23. And the median was -2.67.
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 Sherwin-Williams Co 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 * 0.9826||+||0.528 * 0.9651||+||0.404 * 0.9861||+||0.892 * 1.0549||+||0.115 * 0.9799|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9973||+||4.679 * -0.0263||-||0.327 * 1.2035|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $1,454 Mil.|
Revenue was 3132.139 + 2450.284 + 2569.412 + 3150.57 = $11,302 Mil.
Gross Profit was 1529.986 + 1132.449 + 1217.975 + 1470.955 = $5,351 Mil.
Total Current Assets was $3,005 Mil.
Total Assets was $6,135 Mil.
Property, Plant and Equipment(Net PPE) was $1,005 Mil.
Depreciation, Depletion and Amortization(DDA) was $199 Mil.
Selling, General & Admin. Expense(SGA) was $3,898 Mil.
Total Current Liabilities was $3,357 Mil.
Long-Term Debt was $1,123 Mil.
Net Income was 349.937 + 131.404 + 132.743 + 326.24 = $940 Mil.
Non Operating Income was -9.971 + 1.918 + -3.837 + 14.593 = $3 Mil.
Cash Flow from Operations was 404.088 + -55.068 + 200.218 + 549.73 = $1,099 Mil.
|Accounts Receivable was $1,403 Mil.
Revenue was 3042.995 + 2366.556 + 2457.058 + 2847.417 = $10,714 Mil.
Gross Profit was 1409.653 + 1065.901 + 1124.178 + 1295.958 = $4,896 Mil.
Total Current Assets was $3,108 Mil.
Total Assets was $6,341 Mil.
Property, Plant and Equipment(Net PPE) was $1,006 Mil.
Depreciation, Depletion and Amortization(DDA) was $194 Mil.
Selling, General & Admin. Expense(SGA) was $3,705 Mil.
Total Current Liabilities was $2,725 Mil.
Long-Term Debt was $1,122 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1454.045 / 11302.405)||/||(1402.803 / 10714.026)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(1132.449 / 10714.026)||/||(1529.986 / 11302.405)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (3005.128 + 1005.319) / 6134.664)||/||(1 - (3108.118 + 1006.296) / 6341)|
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.
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))|
|=||(194.025 / (194.025 + 1006.296))||/||(198.587 / (198.587 + 1005.319))|
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)|
|=||(3898.116 / 11302.405)||/||(3705.149 / 10714.026)|
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)|
|=||((1122.756 + 3357.239) / 6134.664)||/||((1122.42 + 2725.284) / 6341)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(940.324 - 2.703||-||1098.968)||/||6134.664|
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.
Sherwin-Williams Co has a M-score of -2.66 suggests that the company will not be a manipulator.
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
Sherwin-Williams Co Annual Data
Sherwin-Williams Co Quarterly Data