Switch to:
Sanofi (NYSE:SNY)
Beneish M-Score
-3.30 (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 has a M-score of -3.36 suggests that the company is not a manipulator.

SNY' s 10-Year Beneish M-Score Range
Min: -3.72   Max: 1.19
Current: -3.3

-3.72
1.19

During the past 13 years, the highest Beneish M-Score of Sanofi was 1.19. The lowest was -3.72. And the median was -2.82.


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 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+0.528 * 1.0216+0.404 * 0.9777+0.892 * 0.9487+0.115 * 1.0222
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0528+4.679 * -0.1698-0.327 * 1.1035
=-3.36

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

This Year (Dec14) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $8,815 Mil.
Revenue was 11307.02836 + 11067.9347826 + 11721.5363512 + 10667.5461741 = $44,764 Mil.
Gross Profit was 7557.33662145 + 7524.45652174 + 7740.74074074 + 7141.16094987 = $29,964 Mil.
Total Current Assets was $28,887 Mil.
Total Assets was $120,089 Mil.
Property, Plant and Equipment(Net PPE) was $12,819 Mil.
Depreciation, Depletion and Amortization(DDA) was $18,429 Mil.
Selling, General & Admin. Expense(SGA) was $12,092 Mil.
Total Current Liabilities was $16,069 Mil.
Long-Term Debt was $16,370 Mil.
Net Income was 1651.04808878 + 1055.70652174 + 1448.55967078 + 591.029023747 = $4,746 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 9482.12083847 + 3442.93478261 + 9539.09465021 + 2671.50395778 = $25,136 Mil.
Accounts Receivable was $0 Mil.
Revenue was 11368.7664042 + 11439.1468005 + 11740.7894737 + 12638.3285303 = $47,187 Mil.
Gross Profit was 7604.98687664 + 8016.31116688 + 8114.47368421 + 8531.70028818 = $32,267 Mil.
Total Current Assets was $29,921 Mil.
Total Assets was $131,770 Mil.
Property, Plant and Equipment(Net PPE) was $13,882 Mil.
Depreciation, Depletion and Amortization(DDA) was $21,073 Mil.
Selling, General & Admin. Expense(SGA) was $12,107 Mil.
Total Current Liabilities was $18,189 Mil.
Long-Term Debt was $14,067 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)
=(8815.0431566 / 44764.045668) / (0 / 47187.0312086)
=0.1969224 / 0
=1

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)
=(7524.45652174 / 47187.0312086) / (7557.33662145 / 44764.045668)
=0.68382077 / 0.66936968
=1.0216

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 - (28886.5598027 + 12818.7422935) / 120088.779285) / (1 - (29921.2598425 + 13881.8897638) / 131770.341207)
=0.65271275 / 0.6675796
=0.9777

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
=44764.045668 / 47187.0312086
=0.9487

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))
=(21072.5776575 / (21072.5776575 + 13881.8897638)) / (18428.6544736 / (18428.6544736 + 12818.7422935))
=0.60285792 / 0.58976607
=1.0222

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)
=(12092.034572 / 44764.045668) / (12107.1532711 / 47187.0312086)
=0.27012828 / 0.25657798
=1.0528

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)
=((16369.9136868 + 16069.0505549) / 120088.779285) / ((14066.9291339 + 18188.976378) / 131770.341207)
=0.27012486 / 0.24478881
=1.1035

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
=(4746.34330505 - 0 - 25135.6542291) / 120088.779285
=-0.1698

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 has a M-score of -3.36 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 Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.6220.9690.9841.0961.0631.03841.12930.91010.98241.0219
GMI 0.97710.98921.00260.99381.00221.02181.05480.99821.03190.9902
AQI 0.98360.98160.96190.93850.99220.97851.0260.97210.96631.0119
SGI 1.60371.15261.09130.9161.1510.94541.08861.0230.96820.9206
DEPI 0.56250.98931.19060.90061.18471.01071.13361.07490.89631.3267
SGAI 0.98970.93990.9510.96170.95770.99161.02741.02351.03991.0337
LVGI 0.83140.81910.98081.00761.12320.93321.31530.94451.03641.0659
TATA -0.0438-0.0383-0.0256-0.0649-0.0405-0.0503-0.0365-0.0327-0.0337-0.0339
M-score -2.51-2.50-2.51-2.81-2.49-2.70-2.51-2.68-2.71-2.68

Sanofi Quarterly Data

Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14
DSRI 1.06631.20811.33951.16871.102800.884900.9711
GMI 0.49620.73750.77481.0541.06961.06881.03551.041.03341.0216
AQI 0.96590.97091.00891.0040.97440.99751.01820.93940.97140.9777
SGI 0.99560.99421.00891.03261.09161.10951.02191.01060.97130.9487
DEPI 0.99591.06741.15771.09961.10841.08060.97181.00591.03081.0222
SGAI 1.99251.34831.38740.99521.01681.02261.03031.04871.06441.0528
LVGI 1.03371.04811.2721.22751.27721.24370.85150.97991.0351.1035
TATA -0.2223-0.2043-0.1573-0.2241-0.2416-0.2186-0.2087-0.1849-0.1847-0.1698
M-score -3.93-3.47-3.15-3.38-3.49-4.36-3.48-4.26-3.41-3.36
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)
FEEDBACK