WMB 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 Williams Companies Inc was 50.44. The lowest was -3.45. And the median was -2.52.
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 Williams Companies 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 * 1.0597||+||0.528 * 0.8202||+||0.404 * 0.902||+||0.892 * 0.9274||+||0.115 * 0.8839|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0856||+||4.679 * -0.0611||-||0.327 * 1.152|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $738 Mil.|
Revenue was 1736 + 1660 + 2006 + 1799 = $7,201 Mil.
Gross Profit was 941 + 951 + 1181 + 970 = $4,043 Mil.
Total Current Assets was $2,357 Mil.
Total Assets was $48,124 Mil.
Property, Plant and Equipment(Net PPE) was $28,249 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,774 Mil.
Selling, General & Admin. Expense(SGA) was $750 Mil.
Total Current Liabilities was $2,752 Mil.
Long-Term Debt was $24,394 Mil.
Net Income was -405 + -65 + -715 + -40 = $-1,225 Mil.
Non Operating Income was 136 + 18 + -767 + -331 = $-944 Mil.
Cash Flow from Operations was 685 + 779 + 592 + 603 = $2,659 Mil.
|Accounts Receivable was $751 Mil.
Revenue was 1839 + 1716 + 2141 + 2069 = $7,765 Mil.
Gross Profit was 908 + 867 + 951 + 850 = $3,576 Mil.
Total Current Assets was $1,426 Mil.
Total Assets was $51,163 Mil.
Property, Plant and Equipment(Net PPE) was $29,089 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,603 Mil.
Selling, General & Admin. Expense(SGA) was $745 Mil.
Total Current Liabilities was $3,768 Mil.
Long-Term Debt was $21,285 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)|
|=||(738 / 7201)||/||(751 / 7765)|
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)|
|=||(3576 / 7765)||/||(4043 / 7201)|
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 - (2357 + 28249) / 48124)||/||(1 - (1426 + 29089) / 51163)|
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))|
|=||(1603 / (1603 + 29089))||/||(1774 / (1774 + 28249))|
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)|
|=||(750 / 7201)||/||(745 / 7765)|
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)|
|=||((24394 + 2752) / 48124)||/||((21285 + 3768) / 51163)|
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|
|=||(-1225 - -944||-||2659)||/||48124|
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.
Williams Companies Inc has a M-score of -2.99 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
Williams Companies Inc Annual Data
Williams Companies Inc Quarterly Data