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United States Steel Corp (NYSE:X)
Beneish M-Score
-3.14 (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.

United States Steel Corp has a M-score of -3.14 suggests that the company is not a manipulator.

X' s 10-Year Beneish M-Score Range
Min: -30.41   Max: 5.05
Current: -3.14

-30.41
5.05

During the past 13 years, the highest Beneish M-Score of United States Steel Corp was 5.05. The lowest was -30.41. And the median was -2.65.


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 United States Steel Corp 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 * 0.9553+0.528 * 0.7324+0.404 * 0.9752+0.892 * 1.0035+0.115 * 0.7932
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.956+4.679 * -0.0924-0.327 * 1.053
=-3.14

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,876 Mil.
Revenue was 4587 + 4400 + 4448 + 4269 = $17,704 Mil.
Gross Profit was 739 + 303 + 410 + 358 = $1,810 Mil.
Total Current Assets was $6,101 Mil.
Total Assets was $12,008 Mil.
Property, Plant and Equipment(Net PPE) was $4,570 Mil.
Depreciation, Depletion and Amortization(DDA) was $659 Mil.
Selling, General & Admin. Expense(SGA) was $567 Mil.
Total Current Liabilities was $3,550 Mil.
Long-Term Debt was $3,162 Mil.
Net Income was -207 + -18 + 52 + 270 = $97 Mil.
Non Operating Income was -5 + -5 + -9 + -14 = $-33 Mil.
Cash Flow from Operations was -106 + 783 + 570 + -7 = $1,240 Mil.
Accounts Receivable was $1,957 Mil.
Revenue was 4131 + 4429 + 4595 + 4487 = $17,642 Mil.
Gross Profit was 382 + 315 + 353 + 271 = $1,321 Mil.
Total Current Assets was $5,354 Mil.
Total Assets was $13,006 Mil.
Property, Plant and Equipment(Net PPE) was $6,167 Mil.
Depreciation, Depletion and Amortization(DDA) was $685 Mil.
Selling, General & Admin. Expense(SGA) was $591 Mil.
Total Current Liabilities was $3,286 Mil.
Long-Term Debt was $3,618 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)
=(1876 / 17704) / (1957 / 17642)
=0.10596475 / 0.11092847
=0.9553

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)
=(303 / 17642) / (739 / 17704)
=0.07487813 / 0.10223678
=0.7324

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 - (6101 + 4570) / 12008) / (1 - (5354 + 6167) / 13006)
=0.11134244 / 0.11417807
=0.9752

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
=17704 / 17642
=1.0035

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))
=(685 / (685 + 6167)) / (659 / (659 + 4570))
=0.09997081 / 0.12602792
=0.7932

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)
=(567 / 17704) / (591 / 17642)
=0.03202666 / 0.0334996
=0.956

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)
=((3162 + 3550) / 12008) / ((3618 + 3286) / 13006)
=0.55896069 / 0.53083192
=1.053

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
=(97 - -33 - 1240) / 12008
=-0.0924

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 States Steel Corp has a M-score of -3.14 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.

United States Steel Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.97340.86071.06011.07530.78251.67360.78480.96720.79161.0773
GMI 0.54621.10250.99351.31670.7823-3.415-0.77430.81910.89191.0872
AQI 1.67760.35280.91362.80820.89711.0170.99710.99790.97530.3853
SGI 1.49160.99511.11941.07371.40780.46511.57261.14450.9720.9015
DEPI 1.00841.14060.92261.28740.84650.94040.95930.98191.00320.9031
SGAI 0.73610.94920.7730.90820.75372.1260.62771.050.91791.0346
LVGI 0.6931.17790.82251.14260.92311.0391.15061.07150.97841.1469
TATA -0.0438-0.038-0.0368-0.05770.0224-0.0861-0.0011-0.0104-0.0805-0.1535
M-score -2.09-3.03-2.44-1.72-2.32-5.28-3.10-2.56-3.12-3.48

United States Steel Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.79270.99070.79160.90620.94950.90421.07731.2211.04560.9553
GMI 0.73710.99750.89191.14831.25661.08621.08720.94650.83660.7324
AQI 1.0471.04350.97530.96770.98520.51140.38530.37910.3850.9752
SGI 1.06961.01520.9720.92860.90410.89740.90150.92140.94961.0035
DEPI 0.94711.00081.00320.9860.96790.93520.90310.92190.93980.7932
SGAI 0.97760.96150.91790.92850.94090.94761.03461.04541.03740.956
LVGI 1.02971.00740.97840.98221.00251.14151.14691.15291.14861.053
TATA -0.0726-0.0788-0.0805-0.0575-0.0519-0.1941-0.1535-0.1672-0.2102-0.0924
M-score -3.08-2.82-3.12-2.82-2.72-3.76-3.48-3.48-3.86-3.14
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