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United States Steel Corp (NYSE:X)
Beneish M-Score
-2.99 (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 -2.99 suggests that the company is not a manipulator.

X' s Beneish M-Score Range Over the Past 10 Years
Min: -30.41   Max: 70.56
Current: -2.99

-30.41
70.56

During the past 13 years, the highest Beneish M-Score of United States Steel Corp was 70.56. The lowest was -30.41. And the median was -2.69.


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 * 0.8725+0.528 * 1.2263+0.404 * 1.1163+0.892 * 0.7385+0.115 * 1.1268
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.015+4.679 * -0.0691-0.327 * 1.0327
=-2.99

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,335 Mil.
Revenue was 2830 + 2900 + 3272 + 4072 = $13,074 Mil.
Gross Profit was 176 + 108 + 206 + 600 = $1,090 Mil.
Total Current Assets was $5,385 Mil.
Total Assets was $11,191 Mil.
Property, Plant and Equipment(Net PPE) was $4,415 Mil.
Depreciation, Depletion and Amortization(DDA) was $556 Mil.
Selling, General & Admin. Expense(SGA) was $425 Mil.
Total Current Liabilities was $3,333 Mil.
Long-Term Debt was $3,127 Mil.
Net Income was -173 + -261 + -75 + 275 = $-234 Mil.
Non Operating Income was 1 + -2 + -11 + -2 = $-14 Mil.
Cash Flow from Operations was 93 + 79 + 136 + 245 = $553 Mil.
Accounts Receivable was $2,072 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.



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)
=(1335 / 13074) / (2072 / 17704)
=0.10211106 / 0.1170357
=0.8725

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)
=(108 / 17704) / (176 / 13074)
=0.10223678 / 0.08337158
=1.2263

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 - (5385 + 4415) / 11191) / (1 - (6101 + 4570) / 12008)
=0.12429631 / 0.11134244
=1.1163

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
=13074 / 17704
=0.7385

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))
=(659 / (659 + 4570)) / (556 / (556 + 4415))
=0.12602792 / 0.11184872
=1.1268

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)
=(425 / 13074) / (567 / 17704)
=0.03250727 / 0.03202666
=1.015

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)
=((3127 + 3333) / 11191) / ((3162 + 3550) / 12008)
=0.57724958 / 0.55896069
=1.0327

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
=(-234 - -14 - 553) / 11191
=-0.0691

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 -2.99 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.99881.07530.78251.67360.78480.76371.11931.14640.89480.8396
GMI 0.97641.31670.7823-3.415-0.77430.81910.89191.08720.68943.133
AQI 0.9242.80820.89711.0170.99710.99790.94070.39941.22230.9754
SGI 1.11941.07371.40780.46511.57261.14450.9720.90151.00480.6611
DEPI 0.92261.28740.84650.94040.95930.98191.00320.90310.85891.0927
SGAI 0.82250.90820.75372.1260.62771.050.91791.03460.85331.1251
LVGI 0.82251.14260.92311.0391.15061.07150.97841.14691.04061.0423
TATA -0.0364-0.05250.0224-0.0861-0.0011-0.0104-0.0805-0.1514-0.1112-0.2002
M-score -2.51-1.69-2.32-5.28-3.10-2.75-2.83-3.40-3.17-2.78

United States Steel Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.90421.14641.2211.04561.05510.89480.73130.88960.87250.8396
GMI 1.05841.09160.9510.84640.74460.68940.74930.75581.22633.133
AQI 0.51140.39940.37910.3850.97521.22231.4961.40791.11630.9754
SGI 0.89740.90150.92140.94961.00351.00480.94520.85990.73850.6611
DEPI 0.93520.90310.92190.93980.79320.85890.86020.91121.12681.0927
SGAI 1.00461.02371.03391.01220.92170.85330.85440.88151.0151.1251
LVGI 1.14151.14691.15291.14861.0531.04061.04331.06811.03271.0423
TATA -0.1941-0.1514-0.1652-0.2082-0.0902-0.1112-0.0918-0.0537-0.0691-0.1989
M-score -3.79-3.40-3.46-3.84-3.02-3.17-3.14-2.93-2.99-2.77
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