UPS 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 United Parcel Service Inc was -2.45. The lowest was -3.54. And the median was -2.77.
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 United Parcel Service Inc 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 * 1.0336||+||0.528 * 1.0066||+||0.404 * 1.0861||+||0.892 * 1.0436||+||0.115 * 0.964|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0738||+||4.679 * -0.0766||-||0.327 * 1.0399|
|This Year (Dec16) TTM:||Last Year (Dec15) TTM:|
|Accounts Receivable was $7,695 Mil.|
Revenue was 16931 + 14928 + 14629 + 14418 = $60,906 Mil.
Gross Profit was 12807 + 11541 + 11426 + 11310 = $47,084 Mil.
Total Current Assets was $13,849 Mil.
Total Assets was $40,377 Mil.
Property, Plant and Equipment(Net PPE) was $18,800 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,224 Mil.
Selling, General & Admin. Expense(SGA) was $34,770 Mil.
Total Current Liabilities was $11,730 Mil.
Long-Term Debt was $12,394 Mil.
Net Income was -239 + 1270 + 1269 + 1131 = $3,431 Mil.
Non Operating Income was 12 + 13 + 8 + 17 = $50 Mil.
Cash Flow from Operations was 1110 + 670 + 2023 + 2670 = $6,473 Mil.
|Accounts Receivable was $7,134 Mil.
Revenue was 16054 + 14237 + 14095 + 13977 = $58,363 Mil.
Gross Profit was 12398 + 11091 + 11092 + 10835 = $45,416 Mil.
Total Current Assets was $13,208 Mil.
Total Assets was $38,311 Mil.
Property, Plant and Equipment(Net PPE) was $18,352 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,084 Mil.
Selling, General & Admin. Expense(SGA) was $31,028 Mil.
Total Current Liabilities was $10,696 Mil.
Long-Term Debt was $11,316 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)|
|=||(7695 / 60906)||/||(7134 / 58363)|
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)|
|=||(45416 / 58363)||/||(47084 / 60906)|
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 - (13849 + 18800) / 40377)||/||(1 - (13208 + 18352) / 38311)|
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))|
|=||(2084 / (2084 + 18352))||/||(2224 / (2224 + 18800))|
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)|
|=||(34770 / 60906)||/||(31028 / 58363)|
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)|
|=||((12394 + 11730) / 40377)||/||((11316 + 10696) / 38311)|
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|
|=||(3431 - 50||-||6473)||/||40377|
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.
United Parcel Service Inc has a M-score of -2.76 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
United Parcel Service Inc Annual Data
United Parcel Service Inc Quarterly Data