EMC (BUE:EMC) Beneish M-Score : 0.00 (As of May. 01, 2024)

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What is EMC Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for EMC's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of EMC was 0.00. The lowest was 0.00. And the median was 0.00.

EMC Beneish M-Score Historical Data

The historical data trend for EMC's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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EMC Beneish M-Score Chart

EMC Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Beneish M-Score

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-2.81

-2.70

-2.92

-2.70

-2.94

EMC Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Beneish M-Score	Get a 7-Day Free Trial															-2.91	-2.89	-2.94	-2.85	-2.99

Competitive Comparison of EMC's Beneish M-Score

For the Computer Hardware subindustry, EMC's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

EMC's Beneish M-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, EMC's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where EMC's Beneish M-Score falls into.

EMC Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 EMC for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9181

0.528 * 1.0028

0.404 * 0.9413

0.892 * 1.4509

0.115 * 1.0065

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0211

4.679 * -0.074615

0.327 * 0.9013

-2.50

This Year (Jun16) TTM:

Last Year (Jun15) TTM:

Total Receivables was ARS40,485 Mil.
Revenue was 84116.035 + 79956.9 + 90795.145 + 57156.582 = ARS312,025 Mil.
Gross Profit was 52228.271 + 47609.04 + 56431.48 + 34835.522 = ARS191,104 Mil.
Total Current Assets was ARS231,365 Mil.
Total Assets was ARS653,482 Mil.
Property, Plant and Equipment(Net PPE) was ARS52,074 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS24,858 Mil.
Selling, General, & Admin. Expense(SGA) was ARS106,717 Mil.
Total Current Liabilities was ARS159,411 Mil.
Long-Term Debt & Capital Lease Obligation was ARS76,595 Mil.
Net Income was 8122.223 + 3913.872 + 9979.053 + 4513.104 = ARS26,528 Mil.
Non Operating Income was 167.757 + 248.268 + 944.839 + 441.908 = ARS1,803 Mil.
Cash Flow from Operations was 22479.406 + 13610.928 + 24203.41 + 13191.427 = ARS73,485 Mil.

Total Receivables was ARS30,394 Mil.
Revenue was 54491.74 + 49504.976 + 60275.999 + 50783.408 = ARS215,056 Mil.
Gross Profit was 32593.275 + 29448.978 + 38522.255 + 31512.317 = ARS132,077 Mil.
Total Current Assets was ARS128,002 Mil.
Total Assets was ARS407,684 Mil.
Property, Plant and Equipment(Net PPE) was ARS34,420 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS16,590 Mil.
Selling, General, & Admin. Expense(SGA) was ARS72,033 Mil.
Total Current Liabilities was ARS113,645 Mil.
Long-Term Debt & Capital Lease Obligation was ARS49,721 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(40485.298 / 312024.662)	/	(30394.342 / 215056.123)
	=	0.12975	/	0.141332
	=	0.9181

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)
	=	(132076.825 / 215056.123)	/	(191104.313 / 312024.662)
	=	0.61415	/	0.612465
	=	1.0028

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (231364.532 + 52074.494) / 653482.479)	/	(1 - (128001.525 + 34419.662) / 407683.995)
	=	0.566264	/	0.6016
	=	0.9413

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	312024.662	/	215056.123
	=	1.4509

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(16589.954 / (16589.954 + 34419.662))	/	(24858.474 / (24858.474 + 52074.494))
	=	0.325232	/	0.323119
	=	1.0065

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(106716.717 / 312024.662)	/	(72032.992 / 215056.123)
	=	0.342014	/	0.33495
	=	1.0211

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((76594.941 + 159410.861) / 653482.479)	/	((49721.328 + 113644.855) / 407683.995)
	=	0.361151	/	0.400718
	=	0.9013

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
	=	(26528.252 - 1802.772	-	73485.171)	/	653482.479
	=	-0.074615

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

EMC has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.

EMC Beneish M-Score Related Terms

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EMC (BUE:EMC) Business Description

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Address

Website

http://www.emc.com

EMC Corp is a Massachusetts corporation, incorporated in 1979. The Company together with its subsidiaries supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). The Company operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. The Company's information infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost and increasing competitive advantage. VMware Virtual Infrastructure provides virtualization infrastructure solutions. Pivotal provides application and data infrastructure software, agile development services and data science consulting. The Company offers a comprehensive portfolio of enterprise storage systems and software - including high-end EMC VMAX and mid-tier EMC VNX unified storage and a portfolio of backup products that support enterprise application workloads. The Company's two additional storage families, EMC Isilon and EMC Atmos, are specifically designed to handle vast quantities of unstructured data. EMC supports a broad range of customers, including service providers, around the world - in every industry, in both public and private sectors, and of sizes ranging from the Fortune 500 to small business and individual consumers. The Company markets its products through direct sales and through multiple distribution channels. It has a direct sales presence throughout North America, Latin America, Europe, the Middle East, South Africa and the Asia Pacific region. The Company also has agreements in place with many partners, including value-added resellers and distributors, cloud service providers, systems integrators, outsourcers, Independent Software Vendors ("ISVs"), and Original Equipment Manufacturers ("OEMs"). The Company competes with many companies in the markets it serve, including companies that offer IT products and services and others that offer specific information storage, protection, security, management and intelligence, data analytics or virtualization products or services.