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United States Steel Corp (NYSE:X)
Beneish M-Score
-3.87 (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 -3.87 suggests that the company is not a manipulator.

X' s 10-Year Beneish M-Score Range
Min: -30.41   Max: 69.97
Current: -3.87

-30.41
69.97

During the past 13 years, the highest Beneish M-Score of United States Steel Corp was 69.97. The lowest was -30.41. And the median was -2.64.


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 * 1.0255+0.528 * 0.8464+0.404 * 0.385+0.892 * 0.9496+0.115 * 0.9398
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0122+4.679 * -0.2102-0.327 * 1.1486
=-3.87

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2,086 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.
Net Income was -18 + 52 + 270 + -1791 = $-1,487 Mil.
Non Operating Income was -5 + -9 + -14 + -24 = $-52 Mil.
Cash Flow from Operations was 783 + 570 + -7 + 37 = $1,383 Mil.
Accounts Receivable was $2,142 Mil.
Revenue was 4429 + 4595 + 4487 + 4652 = $18,163 Mil.
Gross Profit was 315 + 353 + 293 + 334 = $1,295 Mil.
Total Current Assets was $5,416 Mil.
Total Assets was $14,864 Mil.
Property, Plant and Equipment(Net PPE) was $6,156 Mil.
Depreciation, Depletion and Amortization(DDA) was $675 Mil.
Selling, General & Admin. Expense(SGA) was $619 Mil.
Total Current Liabilities was $3,268 Mil.
Long-Term Debt was $3,611 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)
=(2086 / 17248) / (2142 / 18163)
=0.12094156 / 0.11793206
=1.0255

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)
=(410 / 18163) / (303 / 17248)
=0.07129879 / 0.08424165
=0.8464

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 - (6527 + 5736) / 13406) / (1 - (5416 + 6156) / 14864)
=0.08526033 / 0.2214747
=0.385

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
=17248 / 18163
=0.9496

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))
=(675 / (675 + 6156)) / (674 / (674 + 5736))
=0.09881423 / 0.10514821
=0.9398

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)
=(595 / 17248) / (619 / 18163)
=0.03449675 / 0.03408027
=1.0122

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)
=((3605 + 3521) / 13406) / ((3611 + 3268) / 14864)
=0.53155304 / 0.46279602
=1.1486

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
=(-1487 - -52 - 1383) / 13406
=-0.2102

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 -3.87 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

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 -0.0365-0.038-0.0364-0.05250.0224-0.0861-0.0011-0.0104-0.0805-0.1535
M-score -2.08-2.98-2.51-1.69-2.32-5.28-3.10-2.56-3.05-3.41

United States Steel Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.85920.85240.90920.88370.97250.95960.90421.14641.13781.0255
GMI 0.65130.74051.00690.88821.1431.23651.05841.09160.9510.8464
AQI 0.99991.0471.04350.94070.96770.98520.51140.39940.37910.385
SGI 1.10091.06961.01520.9720.92860.90410.89740.90150.92140.9496
DEPI 0.95210.94711.00081.00320.9860.96790.93520.90310.92190.9398
SGAI 1.02720.96660.94070.92770.93890.97531.00461.02371.03391.0122
LVGI 1.05621.02971.00740.97840.98221.00251.14151.14691.15291.1486
TATA -0.0402-0.0726-0.0788-0.0805-0.0575-0.0519-0.1941-0.1535-0.1672-0.2102
M-score -2.92-3.02-2.89-3.05-2.76-2.73-3.79-3.41-3.55-3.87
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