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United States Steel Corp (NYSE:X)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

X' s 10-Year Beneish M-Score Range
Min: -30.41   Max: 70.56
Current: -2.93

-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 -2.68.


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 * 0.8896+0.528 * 0.7558+0.404 * 1.4079+0.892 * 0.8599+0.115 * 0.9112
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8815+4.679 * -0.0537-0.327 * 1.0681
=-2.93

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was -261 + -75 + 275 + -207 = $-268 Mil.
Non Operating Income was -2 + -11 + -2 + -5 = $-20 Mil.
Cash Flow from Operations was 79 + 136 + 245 + -106 = $354 Mil.
Accounts Receivable was $1,957 Mil.
Revenue was 4400 + 4448 + 4269 + 4131 = $17,248 Mil.
Gross Profit was 303 + 410 + 358 + 382 = $1,453 Mil.
Total Current Assets was $6,527 Mil.
Total Assets was $13,406 Mil.
Property, Plant and Equipment(Net PPE) was $5,736 Mil.
Depreciation, Depletion and Amortization(DDA) was $674 Mil.
Selling, General & Admin. Expense(SGA) was $595 Mil.
Total Current Liabilities was $3,521 Mil.
Long-Term Debt was $3,605 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)
=(1497 / 14831) / (1957 / 17248)
=0.10093723 / 0.11346243
=0.8896

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)
=(206 / 17248) / (108 / 14831)
=0.08424165 / 0.11145573
=0.7558

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 - (5436 + 4431) / 11213) / (1 - (6527 + 5736) / 13406)
=0.12003924 / 0.08526033
=1.4079

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
=14831 / 17248
=0.8599

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))
=(674 / (674 + 5736)) / (578 / (578 + 4431))
=0.10514821 / 0.11539229
=0.9112

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)
=(451 / 14831) / (595 / 17248)
=0.03040928 / 0.03449675
=0.8815

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)
=((3124 + 3242) / 11213) / ((3605 + 3521) / 13406)
=0.56773388 / 0.53155304
=1.0681

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
=(-268 - -20 - 354) / 11213
=-0.0537

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 -2.93 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00610.99881.07530.78251.67360.78480.76371.00251.27990.8948
GMI 1.0930.97641.31670.7823-3.415-0.77430.81910.89191.08720.6894
AQI 0.35220.9242.80820.89711.0170.99710.99790.97530.38531.2223
SGI 1.00461.11941.07371.40780.46511.57261.14450.9720.90151.0048
DEPI 1.14060.92261.28740.84650.94040.95930.98191.00320.90310.8589
SGAI 0.88360.82250.90820.75372.1260.62771.050.91791.03460.8533
LVGI 1.18830.82251.14260.92311.0391.15061.07150.97841.14691.0406
TATA -0.038-0.0364-0.05250.0224-0.0861-0.0011-0.0104-0.0805-0.1535-0.1112
M-score -2.89-2.51-1.69-2.32-5.28-3.10-2.75-2.92-3.30-3.17

United States Steel Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.90620.94950.90421.27991.2211.04561.05510.89480.73130.8896
GMI 1.14831.25661.08621.08720.94650.83660.73240.68940.74930.7558
AQI 0.96770.98520.51140.38530.37910.3850.97521.22231.4961.4079
SGI 0.92860.90410.89740.90150.92140.94961.00351.00480.94520.8599
DEPI 0.9860.96790.93520.90310.92190.93980.79320.85890.86020.9112
SGAI 0.92850.94090.94761.03461.04541.03740.9560.85330.85440.8815
LVGI 0.98221.00251.14151.14691.15291.14861.0531.04061.04331.0681
TATA -0.0575-0.0519-0.1941-0.1535-0.1672-0.2102-0.0924-0.1112-0.0918-0.0537
M-score -2.82-2.72-3.76-3.30-3.48-3.86-3.04-3.17-3.14-2.93
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