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United States Steel Corporation (NYSE:X)
Beneish M-Score
-3.41 (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 Corporation has a M-score of -3.41 suggests that the company is not a manipulator.

X' s 10-Year Beneish M-Score Range
Min: -5.91   Max: -0.6
Current: -3.41

-5.91
-0.6

During the past 13 years, the highest Beneish M-Score of United States Steel Corporation was -0.60. The lowest was -5.91. And the median was -2.66.


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 Corporation 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 * 1.1464+0.528 * 1.0916+0.404 * 0.3994+0.892 * 0.9015+0.115 * 0.9031
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0237+4.679 * -0.1535-0.327 * 1.1469
=-3.41

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $2,160 Mil.
Revenue was 4269 + 4131 + 4429 + 4595 = $17,424 Mil.
Gross Profit was 358 + 382 + 315 + 353 = $1,408 Mil.
Total Current Assets was $6,078 Mil.
Total Assets was $13,143 Mil.
Property, Plant and Equipment(Net PPE) was $5,922 Mil.
Depreciation, Depletion and Amortization(DDA) was $684 Mil.
Selling, General & Admin. Expense(SGA) was $610 Mil.
Total Current Liabilities was $3,245 Mil.
Long-Term Debt was $3,616 Mil.
Net Income was 270 + -1791 + -78 + -73 = $-1,672 Mil.
Non Operating Income was -14 + -24 + -11 + -20 = $-69 Mil.
Cash Flow from Operations was -7 + 37 + 151 + 233 = $414 Mil.
Accounts Receivable was $2,090 Mil.
Revenue was 4487 + 4652 + 5017 + 5172 = $19,328 Mil.
Gross Profit was 293 + 334 + 532 + 546 = $1,705 Mil.
Total Current Assets was $5,496 Mil.
Total Assets was $15,217 Mil.
Property, Plant and Equipment(Net PPE) was $6,408 Mil.
Depreciation, Depletion and Amortization(DDA) was $661 Mil.
Selling, General & Admin. Expense(SGA) was $661 Mil.
Total Current Liabilities was $2,990 Mil.
Long-Term Debt was $3,936 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)
=(2160 / 17424) / (2090 / 19328)
=0.12396694 / 0.10813328
=1.1464

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)
=(382 / 19328) / (358 / 17424)
=0.08821399 / 0.08080808
=1.0916

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 - (6078 + 5922) / 13143) / (1 - (5496 + 6408) / 15217)
=0.08696645 / 0.21771703
=0.3994

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
=17424 / 19328
=0.9015

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))
=(661 / (661 + 6408)) / (684 / (684 + 5922))
=0.09350686 / 0.10354223
=0.9031

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)
=(610 / 17424) / (661 / 19328)
=0.03500918 / 0.03419909
=1.0237

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)
=((3616 + 3245) / 13143) / ((3936 + 2990) / 15217)
=0.52202693 / 0.45514885
=1.1469

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
=(-1672 - -69 - 414) / 13143
=-0.1535

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 Corporation has a M-score of -3.41 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.96920.90490.99881.07530.78251.67360.78480.96720.88371.1464
GMI 0.51.0930.97641.31670.7823-3.415-0.77430.81910.89191.0872
AQI 1.6610.35220.9242.80820.89711.0170.99710.99790.94070.3994
SGI 1.49821.00461.11941.07371.40780.46511.57261.14450.9720.9015
DEPI 1.00841.14060.92261.28740.84650.94040.95930.98191.00320.9031
SGAI 0.73290.88360.82250.90820.75372.1260.62771.050.91791.0346
LVGI 0.68731.18830.82251.14260.92311.0391.15061.07150.97841.1469
TATA -0.0365-0.038-0.0364-0.05770.0224-0.0861-0.0011-0.0104-0.0805-0.1535
M-score -2.08-2.98-2.51-1.72-2.32-5.28-3.10-2.56-3.05-3.41

United States Steel Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.93650.96720.85920.85240.90920.88370.97250.95960.90421.1464
GMI 0.70230.81910.65130.74051.00690.88821.1431.23651.05841.0916
AQI 0.98630.99790.99991.0471.04350.94070.96770.98520.51140.3994
SGI 1.17881.14451.10091.06961.01520.9720.92860.90410.89740.9015
DEPI 1.01020.98190.95210.94711.00081.00320.9860.96790.93520.9031
SGAI 0.99671.051.02720.96660.94070.92770.93890.97531.00461.0237
LVGI 1.07621.07151.05621.02971.00740.97840.98221.00251.14151.1469
TATA -0.0161-0.0104-0.0402-0.0726-0.0788-0.0805-0.0575-0.0519-0.1941-0.1535
M-score -2.64-2.56-2.92-3.02-2.89-3.05-2.76-2.73-3.79-3.41
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