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United States Steel Corp (NYSE:X)
Beneish M-Score
0.23 (As of Today)

Warning Sign:

Beneish M-Score 0.23 higher than -2.22, which implies that it might have manipulated its financial results.

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 0.23 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: 0.23

-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 -2.69.


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 * 1.0605+0.528 * 9.1239+0.404 * 0.7655+0.892 * 0.6517+0.115 * 1.1299
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2036+4.679 * -0.2541-0.327 * 1.0581
=0.23

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,139 Mil.
Revenue was 2341 + 2572 + 2830 + 2900 = $10,643 Mil.
Gross Profit was -95 + -57 + 176 + 108 = $132 Mil.
Total Current Assets was $3,683 Mil.
Total Assets was $8,936 Mil.
Property, Plant and Equipment(Net PPE) was $4,395 Mil.
Depreciation, Depletion and Amortization(DDA) was $532 Mil.
Selling, General & Admin. Expense(SGA) was $382 Mil.
Total Current Liabilities was $2,193 Mil.
Long-Term Debt was $3,076 Mil.
Net Income was -340 + -1133 + -173 + -261 = $-1,907 Mil.
Non Operating Income was 0 + -34 + 1 + -2 = $-35 Mil.
Cash Flow from Operations was 113 + 51 + 93 + 142 = $399 Mil.
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.



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)
=(1139 / 10643) / (1648 / 16331)
=0.1070187 / 0.10091238
=1.0605

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)
=(1848 / 16331) / (132 / 10643)
=0.11315902 / 0.01240252
=9.1239

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 - (3683 + 4395) / 8936) / (1 - (5742 + 4354) / 11544)
=0.09601611 / 0.12543313
=0.7655

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
=10643 / 16331
=0.6517

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))
=(605 / (605 + 4354)) / (532 / (532 + 4395))
=0.1220004 / 0.10797646
=1.1299

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)
=(382 / 10643) / (487 / 16331)
=0.03589214 / 0.02982059
=1.2036

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)
=((3076 + 2193) / 8936) / ((3124 + 3309) / 11544)
=0.58963742 / 0.55725918
=1.0581

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
=(-1907 - -35 - 399) / 8936
=-0.2541

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 0.23 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 0.99351.31670.7823-3.415-0.77430.81910.89191.08720.68943.133
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 0.7730.90820.75372.1260.62771.050.91791.03460.85331.2003
LVGI 0.82251.14260.92311.0391.15061.07150.97841.14691.06661.0287
TATA -0.029-0.05340.0224-0.0861-0.0011-0.0104-0.0805-0.1535-0.114-0.2127
M-score -2.46-1.69-2.32-5.28-3.10-2.75-2.83-3.41-3.06-2.96

United States Steel Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.2211.04561.05510.89480.73130.88960.87250.8281.06051.1992
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 -0.1646-0.2075-0.0894-0.119-0.0916-0.0591-0.0745-0.2127-0.2541-0.2367
M-score -3.46-3.84-3.02-3.09-3.14-2.96-3.01-2.960.23-1.43
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