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United States Steel Corp (NYSE:X)
Beneish M-Score
-3.09 (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 -3.09 suggests that the company is not a manipulator.

X' s Beneish M-Score Range Over the Past 10 Years
Min: -30.41   Max: 70.61
Current: -3.09

-30.41
70.61

During the past 13 years, the highest Beneish M-Score of United States Steel Corp was 70.61. The lowest was -30.41. And the median was -2.67.


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 * 1.228+0.528 * 0.1472+0.404 * 0.9388+0.892 * 1.0002+0.115 * 0.9215
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7407+4.679 * -0.08-0.327 * 1.0099
=-3.09

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $1,399 Mil.
Revenue was 2725 + 2650 + 2686 + 2584 = $10,645 Mil.
Gross Profit was 164 + 220 + 326 + 187 = $897 Mil.
Total Current Assets was $4,478 Mil.
Total Assets was $9,186 Mil.
Property, Plant and Equipment(Net PPE) was $3,880 Mil.
Depreciation, Depletion and Amortization(DDA) was $515 Mil.
Selling, General & Admin. Expense(SGA) was $283 Mil.
Total Current Liabilities was $2,718 Mil.
Long-Term Debt was $2,752 Mil.
Net Income was -180 + -105 + 51 + -46 = $-280 Mil.
Non Operating Income was -9 + 28 + -20 + -23 = $-24 Mil.
Cash Flow from Operations was -135 + 150 + 264 + 200 = $479 Mil.
Accounts Receivable was $1,139 Mil.
Revenue was 2341 + 2572 + 2830 + 2900 = $10,643 Mil.
Gross Profit was -95 + -57 + 176 + 108 = $132 Mil.
Total Current Assets was $3,683 Mil.
Total Assets was $8,936 Mil.
Property, Plant and Equipment(Net PPE) was $4,395 Mil.
Depreciation, Depletion and Amortization(DDA) was $532 Mil.
Selling, General & Admin. Expense(SGA) was $382 Mil.
Total Current Liabilities was $2,193 Mil.
Long-Term Debt was $3,076 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)
=(1399 / 10645) / (1139 / 10643)
=0.1314232 / 0.1070187
=1.228

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)
=(132 / 10643) / (897 / 10645)
=0.01240252 / 0.08426491
=0.1472

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 - (4478 + 3880) / 9186) / (1 - (3683 + 4395) / 8936)
=0.09013717 / 0.09601611
=0.9388

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
=10645 / 10643
=1.0002

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))
=(532 / (532 + 4395)) / (515 / (515 + 3880))
=0.10797646 / 0.11717861
=0.9215

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)
=(283 / 10645) / (382 / 10643)
=0.02658525 / 0.03589214
=0.7407

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)
=((2752 + 2718) / 9186) / ((3076 + 2193) / 8936)
=0.59547137 / 0.58963742
=1.0099

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
=(-280 - -24 - 479) / 9186
=-0.08

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 -3.09 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 local exchange's currency.

United States Steel Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.07530.78251.67360.78480.76371.11931.14640.89480.8281.3243
GMI 1.31670.7823-3.415-0.77430.81910.89191.08720.68943.1330.6017
AQI 2.80820.89711.0170.99710.99790.94070.39941.54110.68290.9841
SGI 1.07371.40780.46511.57261.14450.9720.90151.00480.66110.8866
DEPI 1.28740.84650.94040.95930.98191.00320.90310.85891.09270.9762
SGAI 0.90820.75372.1260.62771.050.91791.03460.85331.20030.6931
LVGI 1.14260.92311.0391.15061.07150.97841.14691.06661.02681.0143
TATA -0.05250.0224-0.0861-0.0011-0.0104-0.0805-0.1507-0.119-0.2133-0.1246
M-score -1.69-2.32-5.28-3.10-2.75-2.83-3.40-3.09-2.97-3.04

United States Steel Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 0.89480.73130.88960.87250.8281.06051.19921.15021.32431.228
GMI 0.68940.74930.75581.22633.1339.12395.4552.35170.60170.1472
AQI 1.54111.4961.40791.11630.68290.76550.79940.71220.98410.9388
SGI 1.00480.94520.85990.73850.66110.65170.69630.77890.88661.0002
DEPI 0.85890.86020.91121.12681.09271.12991.06541.03150.97620.9215
SGAI 0.85330.85440.88151.0151.20031.20361.07950.94560.69310.7407
LVGI 1.06661.04331.06811.03271.02681.05811.06010.98541.01431.0099
TATA -0.119-0.0916-0.0534-0.0696-0.2133-0.2527-0.2398-0.2177-0.1243-0.08
M-score -3.09-3.14-2.93-2.99-2.970.24-1.44-2.94-3.04-3.09
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