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United States Steel Corp (NYSE:X)
Beneish M-Score
-3.17 (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 -3.17 suggests that the company is not a manipulator.

X' s 10-Year Beneish M-Score Range
Min: -5.33   Max: -0.6
Current: -3.17

-5.33
-0.6

During the past 13 years, the highest Beneish M-Score of United States Steel Corp was -0.60. The lowest was -5.33. And the median was -2.75.


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 * 0.8948+0.528 * 0.6894+0.404 * 1.2223+0.892 * 1.0048+0.115 * 0.8589
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8533+4.679 * -0.1112-0.327 * 1.0406
=-3.17

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,942 Mil.
Revenue was 4072 + 4587 + 4400 + 4448 = $17,507 Mil.
Gross Profit was 600 + 739 + 303 + 410 = $2,052 Mil.
Total Current Assets was $6,431 Mil.
Total Assets was $12,314 Mil.
Property, Plant and Equipment(Net PPE) was $4,574 Mil.
Depreciation, Depletion and Amortization(DDA) was $627 Mil.
Selling, General & Admin. Expense(SGA) was $523 Mil.
Total Current Liabilities was $3,569 Mil.
Long-Term Debt was $3,120 Mil.
Net Income was 275 + -207 + -18 + 52 = $102 Mil.
Non Operating Income was -2 + -5 + -5 + -9 = $-21 Mil.
Cash Flow from Operations was 245 + -106 + 783 + 570 = $1,492 Mil.
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.



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)
=(1942 / 17507) / (2160 / 17424)
=0.11092706 / 0.12396694
=0.8948

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)
=(739 / 17424) / (600 / 17507)
=0.08080808 / 0.11721026
=0.6894

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 - (6431 + 4574) / 12314) / (1 - (6078 + 5922) / 13143)
=0.10630177 / 0.08696645
=1.2223

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
=17507 / 17424
=1.0048

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))
=(684 / (684 + 5922)) / (627 / (627 + 4574))
=0.10354223 / 0.12055374
=0.8589

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)
=(523 / 17507) / (610 / 17424)
=0.02987376 / 0.03500918
=0.8533

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)
=((3120 + 3569) / 12314) / ((3616 + 3245) / 13143)
=0.54320286 / 0.52202693
=1.0406

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
=(102 - -21 - 1492) / 12314
=-0.1112

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 -3.17 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.99071.11930.90620.94950.90421.14641.2211.04560.95530.8948
GMI 1.00690.88821.1431.23651.05841.09160.9510.84640.74460.6894
AQI 1.04350.94070.96770.98520.51140.39940.37910.3850.97521.2223
SGI 1.01520.9720.92860.90410.89740.90150.92140.94961.00351.0048
DEPI 1.00081.00320.9860.96790.93520.90310.92190.93980.79320.8589
SGAI 0.94070.92770.93890.97531.00461.02371.03391.01220.92170.8533
LVGI 1.00740.97840.98221.00251.14151.14691.15291.14861.0531.0406
TATA -0.0788-0.0805-0.0575-0.0519-0.1941-0.1514-0.1652-0.2082-0.0902-0.1112
M-score -2.81-2.84-2.82-2.74-3.79-3.40-3.46-3.84-3.11-3.17
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