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YRC Worldwide Inc (NAS:YRCW)
Beneish M-Score
-2.81 (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.

YRC Worldwide Inc has a M-score of -2.81 suggests that the company is not a manipulator.

YRCW' s Beneish M-Score Range Over the Past 10 Years
Min: -5.32   Max: 2.73
Current: -2.81

-5.32
2.73

During the past 13 years, the highest Beneish M-Score of YRC Worldwide Inc was 2.73. The lowest was -5.32. And the median was -2.77.


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 YRC Worldwide Inc 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 * 0.9301+0.528 * 0.9503+0.404 * 1.2461+0.892 * 0.9701+0.115 * 0.9372
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0069+4.679 * -0.0642-0.327 * 1.0081
=-2.81

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $498 Mil.
Revenue was 1244.9 + 1258.4 + 1186.4 + 1217.7 = $4,907 Mil.
Gross Profit was 878.2 + 877.6 + 824.8 + 825.9 = $3,407 Mil.
Total Current Assets was $811 Mil.
Total Assets was $1,965 Mil.
Property, Plant and Equipment(Net PPE) was $939 Mil.
Depreciation, Depletion and Amortization(DDA) was $164 Mil.
Selling, General & Admin. Expense(SGA) was $2,838 Mil.
Total Current Liabilities was $614 Mil.
Long-Term Debt was $1,065 Mil.
Net Income was 19.8 + 26 + -21.6 + 6.2 = $30 Mil.
Non Operating Income was 4.5 + -0.7 + 3.7 + 2.8 = $10 Mil.
Cash Flow from Operations was 60.4 + 56.9 + -25.8 + 54.8 = $146 Mil.
Accounts Receivable was $552 Mil.
Revenue was 1322.6 + 1317.6 + 1210.9 + 1207.7 = $5,059 Mil.
Gross Profit was 880.2 + 865.8 + 795.3 + 795.9 = $3,337 Mil.
Total Current Assets was $851 Mil.
Total Assets was $2,047 Mil.
Property, Plant and Equipment(Net PPE) was $1,016 Mil.
Depreciation, Depletion and Amortization(DDA) was $165 Mil.
Selling, General & Admin. Expense(SGA) was $2,905 Mil.
Total Current Liabilities was $656 Mil.
Long-Term Debt was $1,080 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)
=(497.8 / 4907.4) / (551.7 / 5058.8)
=0.10143864 / 0.10905748
=0.9301

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)
=(877.6 / 5058.8) / (878.2 / 4907.4)
=0.65968214 / 0.69415576
=0.9503

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 - (811.4 + 938.9) / 1964.8) / (1 - (851.4 + 1015.9) / 2046.6)
=0.10917142 / 0.08760872
=1.2461

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
=4907.4 / 5058.8
=0.9701

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))
=(164.8 / (164.8 + 1015.9)) / (164.3 / (164.3 + 938.9))
=0.13957822 / 0.14893038
=0.9372

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)
=(2837.5 / 4907.4) / (2905.1 / 5058.8)
=0.57820842 / 0.57426662
=1.0069

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)
=((1065.3 + 614.1) / 1964.8) / ((1079.7 + 655.5) / 2046.6)
=0.85474349 / 0.84784521
=1.0081

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
=(30.4 - 10.3 - 146.3) / 1964.8
=-0.0642

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.

YRC Worldwide Inc has a M-score of -2.81 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.

YRC Worldwide Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.15780.90130.92970.83880.9711.1230.95930.96860.99870.9799
GMI 1.06521.01940.95631.05480.98530.98531.04970.96731.00211.0012
AQI 1.1270.99930.72110.29811.51160.91121.18330.93320.73451.4036
SGI 1.29171.13470.970.92920.54480.88991.12320.99621.00311.0418
DEPI 1.05440.94651.11150.90450.87221.04850.91780.95560.9790.9661
SGAI 0.89160.9891.03190.98761.25150.84550.92680.99411.00290.9935
LVGI 1.0960.85331.15521.33581.00591.11551.13571.08421.06560.9023
TATA -0.0254-0.0284-0.2032-0.3027-0.1313-0.1205-0.1035-0.04-0.0493-0.0589
M-score -2.11-2.53-3.70-4.48-3.39-3.08-2.83-2.78-2.84-2.54

YRC Worldwide Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.06231.01560.99871.04031.0231.01420.97990.93740.92220.9301
GMI 0.97510.98991.0021.01331.01731.01081.00120.98270.96340.9503
AQI 0.87690.51820.73450.82960.79351.21551.40361.30881.24961.2461
SGI 0.9750.98611.00311.01971.03711.04821.04181.02660.99920.9701
DEPI 0.99961.00450.9790.96320.95530.96650.96610.95160.94410.9372
SGAI 0.98930.99631.00291.01091.00441.00170.99350.98610.99611.0069
LVGI 1.07321.07111.06560.93190.92960.91420.90231.02441.00741.0081
TATA -0.0086-0.0528-0.0493-0.0547-0.0515-0.0407-0.0589-0.0438-0.0568-0.0642
M-score -2.57-2.95-2.84-2.73-2.72-2.50-2.54-2.61-2.74-2.81
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