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United States Steel Corp (NYSE:X)
Beneish M-Score
-3.14 (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 -3.14 suggests that the company is not a manipulator.

X' s 10-Year Beneish M-Score Range
Min: -30.41   Max: 70.56
Current: -3.14

-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 * 0.7313+0.528 * 0.7493+0.404 * 1.496+0.892 * 0.9452+0.115 * 0.8602
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8544+4.679 * -0.0918-0.327 * 1.0433
=-3.14

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,648 Mil.
Revenue was 3272 + 4072 + 4587 + 4400 = $16,331 Mil.
Gross Profit was 206 + 600 + 739 + 303 = $1,848 Mil.
Total Current Assets was $5,742 Mil.
Total Assets was $11,544 Mil.
Property, Plant and Equipment(Net PPE) was $4,354 Mil.
Depreciation, Depletion and Amortization(DDA) was $605 Mil.
Selling, General & Admin. Expense(SGA) was $487 Mil.
Total Current Liabilities was $3,309 Mil.
Long-Term Debt was $3,124 Mil.
Net Income was -75 + 275 + -207 + -18 = $-25 Mil.
Non Operating Income was -11 + -2 + -5 + -5 = $-23 Mil.
Cash Flow from Operations was 136 + 245 + -106 + 783 = $1,058 Mil.
Accounts Receivable was $2,384 Mil.
Revenue was 4448 + 4269 + 4131 + 4429 = $17,277 Mil.
Gross Profit was 410 + 358 + 382 + 315 = $1,465 Mil.
Total Current Assets was $6,480 Mil.
Total Assets was $13,394 Mil.
Property, Plant and Equipment(Net PPE) was $5,791 Mil.
Depreciation, Depletion and Amortization(DDA) was $679 Mil.
Selling, General & Admin. Expense(SGA) was $603 Mil.
Total Current Liabilities was $3,539 Mil.
Long-Term Debt was $3,615 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)
=(1648 / 16331) / (2384 / 17277)
=0.10091238 / 0.13798692
=0.7313

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)
=(600 / 17277) / (206 / 16331)
=0.08479481 / 0.11315902
=0.7493

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 - (5742 + 4354) / 11544) / (1 - (6480 + 5791) / 13394)
=0.12543313 / 0.08384351
=1.496

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
=16331 / 17277
=0.9452

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))
=(679 / (679 + 5791)) / (605 / (605 + 4354))
=0.1049459 / 0.1220004
=0.8602

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)
=(487 / 16331) / (603 / 17277)
=0.02982059 / 0.03490189
=0.8544

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 + 3309) / 11544) / ((3615 + 3539) / 13394)
=0.55725918 / 0.53411976
=1.0433

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
=(-25 - -23 - 1058) / 11544
=-0.0918

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 -3.14 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 1.00610.99881.07530.78251.67360.78480.76371.11931.14640.8948
GMI 1.0930.97641.31670.7823-3.415-0.77430.81910.89191.08720.6894
AQI 0.35220.9242.80820.89711.0170.99710.99790.94070.39941.2223
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 -0.038-0.0364-0.05250.0224-0.0861-0.0011-0.0104-0.0805-0.1514-0.1112
M-score -2.89-2.51-1.69-2.32-5.28-3.10-2.75-2.83-3.40-3.17

United States Steel Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.11930.90620.94950.90421.14641.2211.04560.95530.89480.7313
GMI 0.88821.1431.23651.05841.09160.9510.84640.74460.68940.7493
AQI 0.94070.96770.98520.51140.39940.37910.3850.97521.22231.496
SGI 0.9720.92860.90410.89740.90150.92140.94961.00351.00480.9452
DEPI 1.00320.9860.96790.93520.90310.92190.93980.79320.85890.8602
SGAI 0.92770.93890.97531.00461.02371.03391.01220.92170.85330.8544
LVGI 0.97840.98221.00251.14151.14691.15291.14861.0531.04061.0433
TATA -0.0805-0.0575-0.0519-0.1941-0.1514-0.1652-0.2082-0.0902-0.1112-0.0918
M-score -2.84-2.82-2.74-3.79-3.40-3.46-3.84-3.11-3.17-3.14
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