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US Bancorp (NYSE:USB)
Beneish M-Score
-2.50 (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.

US Bancorp has a M-score of -2.50 suggests that the company is not a manipulator.

USB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.92   Max: -1.42
Current: -2.5

-2.92
-1.42

During the past 13 years, the highest Beneish M-Score of US Bancorp was -1.42. The lowest was -2.92. And the median was -2.47.


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 US Bancorp 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+0.404 * 1.0005+0.892 * 1.0096+0.115 * 1.0014
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.089+4.679 * -0.0057-0.327 * 0.9507
=-2.50

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $0 Mil.
Revenue was 4984 + 5159 + 5094 + 4988 = $20,225 Mil.
Gross Profit was 4984 + 5159 + 5094 + 4988 = $20,225 Mil.
Total Current Assets was $0 Mil.
Total Assets was $428,638 Mil.
Property, Plant and Equipment(Net PPE) was $2,486 Mil.
Depreciation, Depletion and Amortization(DDA) was $480 Mil.
Selling, General & Admin. Expense(SGA) was $6,758 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $34,872 Mil.
Net Income was 1386 + 1476 + 1489 + 1483 = $5,834 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1261 + 2531 + 2854 + 1646 = $8,292 Mil.
Accounts Receivable was $0 Mil.
Revenue was 4852 + 5114 + 4934 + 5133 = $20,033 Mil.
Gross Profit was 4852 + 5114 + 4934 + 5133 = $20,033 Mil.
Total Current Assets was $0 Mil.
Total Assets was $410,233 Mil.
Property, Plant and Equipment(Net PPE) was $2,575 Mil.
Depreciation, Depletion and Amortization(DDA) was $498 Mil.
Selling, General & Admin. Expense(SGA) was $6,147 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $35,104 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)
=(0 / 20225) / (0 / 20033)
=0 / 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)
=(20033 / 20033) / (20225 / 20225)
=1 / 1
=1

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 - (0 + 2486) / 428638) / (1 - (0 + 2575) / 410233)
=0.99420023 / 0.99372308
=1.0005

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
=20225 / 20033
=1.0096

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))
=(498 / (498 + 2575)) / (480 / (480 + 2486))
=0.16205662 / 0.16183412
=1.0014

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)
=(6758 / 20225) / (6147 / 20033)
=0.33414091 / 0.30684371
=1.089

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)
=((34872 + 0) / 428638) / ((35104 + 0) / 410233)
=0.08135536 / 0.08557088
=0.9507

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
=(5834 - 0 - 8292) / 428638
=-0.0057

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.

US Bancorp has a M-score of -2.50 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.

US Bancorp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1111111111
GMI 1111111111
AQI 1.00041.00091.00080.998711.00031.00031.00041.00071.0006
SGI 1.03721.02021.04921.13251.08921.05261.06250.96581.0291.0077
DEPI 1.12220.94011.06451.14651.0941.10241.00991.04381.03560.9998
SGAI 1.01541.03061.09090.91341.17931.02851.00871.07380.9871.0498
LVGI 0.96921.06590.78910.80320.88430.91690.76760.76381.45510.9488
TATA -0.00310.0072-0.0089-0.0192-0.0063-0.0145-0.0065-0.01540.0013-0.0069
M-score -2.44-2.46-2.42-2.36-2.41-2.47-2.38-2.51-2.59-2.50

US Bancorp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1111111111
GMI 1111111111
AQI 1.00051.00071.00061.00071.00071.00061.00061.00061.00051.0005
SGI 0.96550.98351.00291.0291.0371.01681.01981.00771.00961.0375
DEPI 1.04221.0531.04291.03561.01880.99810.99981.00141.2725
SGAI 0.96431.00160.94861.02421.02621.02381.04161.05131.0891.0733
LVGI 0.90181.19241.51261.45511.33641.22420.99380.94880.95071.0342
TATA -0.0182-0.0077-0.00370.00130.00380.0025-0.0029-0.0069-0.0057-0.0018
M-score -2.55-2.59-2.65-2.60-2.54-2.53-2.48-2.50-2.50-2.45
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