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Sanofi SA (NYSE:SNY)
Beneish M-Score
-2.34 (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.

Sanofi SA has a M-score of -2.44 suggests that the company is not a manipulator.

SNY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Max: 1.45
Current: -2.34

-3.15
1.45

During the past 13 years, the highest Beneish M-Score of Sanofi SA was 1.45. The lowest was -3.15. And the median was -2.24.


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 Sanofi SA 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 * 0.9984+0.528 * 0.9905+0.404 * 0.924+0.892 * 0.9142+0.115 * 0.9941
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.021+4.679 * 0.0427-0.327 * 1.1189
=-2.44

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $8,046 Mil.
Revenue was 7440.08714597 + 10864.1975309 + 10618.4062851 + 9621.21212121 = $38,544 Mil.
Gross Profit was 5046.84095861 + 7499.43883277 + 7320.98765432 + 6606.06060606 = $26,473 Mil.
Total Current Assets was $33,420 Mil.
Total Assets was $111,461 Mil.
Property, Plant and Equipment(Net PPE) was $10,831 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,363 Mil.
Selling, General & Admin. Expense(SGA) was $10,371 Mil.
Total Current Liabilities was $19,399 Mil.
Long-Term Debt was $14,290 Mil.
Net Income was 363.834422658 + 1827.16049383 + 1461.27946128 + 1107.14285714 = $4,759 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $8,815 Mil.
Revenue was 8705.30209618 + 11427.8350515 + 11067.9347826 + 10961.2724758 = $42,162 Mil.
Gross Profit was 5940.81381011 + 7737.11340206 + 7524.45652174 + 7481.32780083 = $28,684 Mil.
Total Current Assets was $28,899 Mil.
Total Assets was $120,089 Mil.
Property, Plant and Equipment(Net PPE) was $12,819 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,777 Mil.
Selling, General & Admin. Expense(SGA) was $11,112 Mil.
Total Current Liabilities was $16,069 Mil.
Long-Term Debt was $16,370 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)
=(8045.75163399 / 38543.9030831) / (8815.0431566 / 42162.3444061)
=0.20874252 / 0.20907384
=0.9984

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)
=(7499.43883277 / 42162.3444061) / (5046.84095861 / 38543.9030831)
=0.68031586 / 0.68683568
=0.9905

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 - (33420.4793028 + 10831.1546841) / 111460.784314) / (1 - (28898.8902589 + 12818.7422935) / 120088.779285)
=0.60298472 / 0.65261007
=0.924

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
=38543.9030831 / 42162.3444061
=0.9142

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))
=(2777.17743289 / (2777.17743289 + 12818.7422935)) / (2363.42415754 / (2363.42415754 + 10831.1546841))
=0.17807077 / 0.17912085
=0.9941

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)
=(10371.4455479 / 38543.9030831) / (11112.0300512 / 42162.3444061)
=0.26908135 / 0.26355342
=1.021

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)
=((14289.7603486 + 19398.6928105) / 111460.784314) / ((16369.9136868 + 16069.0505549) / 120088.779285)
=0.3022449 / 0.27012486
=1.1189

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
=(4759.41723491 - 0 - 0) / 111460.784314
=0.0427

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.

Sanofi SA has a M-score of -2.44 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.

Sanofi SA Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9690.98251.09771.0630.97731.1999011.08930.9483
GMI 0.98921.00260.99381.00221.02741.05060.99741.0310.98490.9906
AQI 0.98160.96190.93850.99220.97851.0260.97220.9661.01190.924
SGI 1.15261.09310.91451.1511.00441.02461.0230.96820.86360.9625
DEPI 0.98931.18950.90141.18471.01071.13361.07490.89631.47420.7975
SGAI 0.93990.98960.92420.95771.00511.0171.02191.0381.01941.0222
LVGI 0.81910.98081.00761.12320.93321.31530.94551.03531.06591.1189
TATA -0.0255-0.0257-0.0588-0.0405-0.0515-0.036-0.0319-0.0337-0.0339-0.0453
M-score -2.44-2.52-2.77-2.49-2.71-2.50-3.52-2.69-2.65-2.87

Sanofi SA Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 10.952211.00450.9984
GMI 1.03221.01120.98440.98160.9905
AQI 0.96630.97951.01171.0050.924
SGI 0.95291.01380.95120.89470.9142
DEPI 1.08141.09981.2191.26690.9941
SGAI 1.03990.97511.02061.04171.021
LVGI 1.03641.06891.06481.03131.1189
TATA 0.03750.04570.04780.05230.0427
M-score -2.35-2.31-2.30-2.32-2.44
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