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United States Steel Corp (NYSE:X)
Beneish M-Score
-1.44 (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 -1.44 signals that the company is a manipulator.

X' s Beneish M-Score Range Over the Past 10 Years
Min: -30.41   Max: 70.61
Current: -1.44

-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 * 1.1992+0.528 * 5.455+0.404 * 0.7994+0.892 * 0.6963+0.115 * 1.0654
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0795+4.679 * -0.2398-0.327 * 1.0601
=-1.44

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,250 Mil.
Revenue was 2584 + 2341 + 2572 + 2830 = $10,327 Mil.
Gross Profit was 187 + -95 + -57 + 176 = $211 Mil.
Total Current Assets was $3,777 Mil.
Total Assets was $8,941 Mil.
Property, Plant and Equipment(Net PPE) was $4,306 Mil.
Depreciation, Depletion and Amortization(DDA) was $523 Mil.
Selling, General & Admin. Expense(SGA) was $339 Mil.
Total Current Liabilities was $2,323 Mil.
Long-Term Debt was $3,058 Mil.
Net Income was -46 + -340 + -1133 + -173 = $-1,692 Mil.
Non Operating Income was -23 + -13 + -34 + 1 = $-69 Mil.
Cash Flow from Operations was 200 + 113 + 51 + 157 = $521 Mil.
Accounts Receivable was $1,497 Mil.
Revenue was 2900 + 3272 + 4072 + 4587 = $14,831 Mil.
Gross Profit was 108 + 206 + 600 + 739 = $1,653 Mil.
Total Current Assets was $5,436 Mil.
Total Assets was $11,213 Mil.
Property, Plant and Equipment(Net PPE) was $4,431 Mil.
Depreciation, Depletion and Amortization(DDA) was $578 Mil.
Selling, General & Admin. Expense(SGA) was $451 Mil.
Total Current Liabilities was $3,242 Mil.
Long-Term Debt was $3,124 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)
=(1250 / 10327) / (1497 / 14831)
=0.12104193 / 0.10093723
=1.1992

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)
=(1653 / 14831) / (211 / 10327)
=0.11145573 / 0.02043188
=5.455

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 - (3777 + 4306) / 8941) / (1 - (5436 + 4431) / 11213)
=0.09596242 / 0.12003924
=0.7994

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
=10327 / 14831
=0.6963

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))
=(578 / (578 + 4431)) / (523 / (523 + 4306))
=0.11539229 / 0.108304
=1.0654

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)
=(339 / 10327) / (451 / 14831)
=0.03282657 / 0.03040928
=1.0795

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)
=((3058 + 2323) / 8941) / ((3124 + 3242) / 11213)
=0.60183425 / 0.56773388
=1.0601

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
=(-1692 - -69 - 521) / 8941
=-0.2398

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 -1.44 signals that the company is likely to 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 0.99881.07530.78251.67360.78480.76371.11931.14640.89480.828
GMI 0.97641.31670.7823-3.415-0.77430.81910.89191.08720.68943.133
AQI 0.9242.80820.89711.0170.99710.99790.94070.39941.54110.6999
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 0.82250.90820.75372.1260.62771.050.91791.03460.85331.2003
LVGI 0.82251.14260.92311.0391.15061.07150.97841.14691.06661.0287
TATA -0.0285-0.05250.0224-0.0861-0.0011-0.0104-0.0805-0.1507-0.119-0.2127
M-score -2.47-1.69-2.32-5.28-3.10-2.75-2.83-3.40-3.09-2.96

United States Steel Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.2210.96211.05510.89480.73130.88960.87250.8281.06051.1992
GMI 0.9510.84640.74460.68940.74930.75581.22633.1339.12395.455
AQI 0.37910.3850.97521.54111.4961.40791.11630.69990.76550.7994
SGI 0.92140.94961.00351.00480.94520.85990.73850.66110.65170.6963
DEPI 0.92190.93980.79320.85890.86020.91121.12681.09271.12991.0654
SGAI 1.03391.01220.92170.85330.85440.88151.0151.20031.20361.0795
LVGI 1.15291.14861.0531.06661.04331.06811.03271.02871.05811.0601
TATA -0.1646-0.2075-0.0894-0.119-0.0916-0.0534-0.0745-0.2127-0.2527-0.2398
M-score -3.46-3.92-3.02-3.09-3.14-2.93-3.01-2.960.24-1.44
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