Switch to:
GuruFocus has detected 3 Warning Signs with Expeditors International of Washington Inc $EXPD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Expeditors International of Washington Inc (NAS:EXPD)
Beneish M-Score
-2.70 (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.

Expeditors International of Washington Inc has a M-score of -2.70 suggests that the company is not a manipulator.

EXPD' s Beneish M-Score Range Over the Past 10 Years
Min: -4.6   Max: 7.41
Current: -2.7

-4.6
7.41

During the past 13 years, the highest Beneish M-Score of Expeditors International of Washington Inc was 7.41. The lowest was -4.60. And the median was -2.45.


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 Expeditors International of Washington 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 * 1.1384+0.528 * 0.98+0.404 * 0.5274+0.892 * 0.9791+0.115 * 0.8624
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0413+4.679 * -0.0227-0.327 * 1.0014
=-2.70

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $1,126 Mil.
Revenue was 1545.132 + 1642.007 + 1562.394 + 1475.164 = $6,225 Mil.
Gross Profit was 499.475 + 548.591 + 545.259 + 553.117 = $2,146 Mil.
Total Current Assets was $2,402 Mil.
Total Assets was $2,903 Mil.
Property, Plant and Equipment(Net PPE) was $464 Mil.
Depreciation, Depletion and Amortization(DDA) was $47 Mil.
Selling, General & Admin. Expense(SGA) was $1,292 Mil.
Total Current Liabilities was $927 Mil.
Long-Term Debt was $0 Mil.
Net Income was 93.264 + 110.59 + 107.581 + 116.052 = $427 Mil.
Non Operating Income was 0.298 + 1.706 + 0.925 + 1.603 = $5 Mil.
Cash Flow from Operations was 195.679 + 72.408 + 115.686 + 105.052 = $489 Mil.
Accounts Receivable was $1,011 Mil.
Revenue was 1418.472 + 1596.221 + 1651.332 + 1691.553 = $6,358 Mil.
Gross Profit was 490.21 + 536.169 + 569.981 + 552.141 = $2,149 Mil.
Total Current Assets was $2,087 Mil.
Total Assets was $2,680 Mil.
Property, Plant and Equipment(Net PPE) was $527 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $1,267 Mil.
Total Current Liabilities was $854 Mil.
Long-Term Debt was $0 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)
=(1126.488 / 6224.697) / (1010.667 / 6357.578)
=0.18097074 / 0.15897044
=1.1384

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)
=(2148.501 / 6357.578) / (2146.442 / 6224.697)
=0.33794332 / 0.34482674
=0.98

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 - (2401.796 + 463.604) / 2902.719) / (1 - (2087.48 + 526.941) / 2679.743)
=0.01285657 / 0.02437622
=0.5274

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
=6224.697 / 6357.578
=0.9791

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))
=(45.812 / (45.812 + 526.941)) / (47.394 / (47.394 + 463.604))
=0.07998561 / 0.09274792
=0.8624

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)
=(1292.059 / 6224.697) / (1267.245 / 6357.578)
=0.20756978 / 0.19932827
=1.0413

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)
=((0 + 926.804) / 2902.719) / ((0 + 854.415) / 2679.743)
=0.31928823 / 0.31884214
=1.0014

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
=(427.487 - 4.532 - 488.825) / 2902.719
=-0.0227

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.

Expeditors International of Washington Inc has a M-score of -2.70 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 local exchange's currency.

Expeditors International of Washington Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.01830.78461.41550.84950.90181.13451.02581.06640.89281.161
GMI 1.4811.53630.79981.25440.91631.01070.98911.0260.91280.9434
AQI 1.02790.92751.05780.8670.95690.95120.88651.80791.14650.5103
SGI 1.12971.07620.72641.45831.03250.97251.01471.07971.00790.9216
DEPI 1.00040.97281.00631.12261.07840.95370.85170.93781.04041.005
SGAI 2.06251.09481.23070.78651.08791.02891.01740.95961.05941.0795
LVGI 0.9560.85770.95541.05540.86321.0271.0121.1790.98660.9924
TATA -0.023-0.054-0.0425-0.0231-0.0282-0.0148-0.0225-0.0081-0.0438-0.0371
M-score -2.36-2.58-2.65-2.20-2.70-2.48-2.62-2.10-2.76-2.81

Expeditors International of Washington Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.06641.0760.94870.93240.89280.8560.9811.06621.1611.1384
GMI 1.0261.01740.98980.94530.91280.8970.88250.91060.94340.98
AQI 1.80791.80720.97161.05071.14651.14570.69670.60170.51030.5274
SGI 1.07971.09611.09411.05721.00790.94180.89740.89140.92160.9791
DEPI 0.93780.96851.0131.04471.04041.04881.03631.01571.0050.8624
SGAI 0.95960.95650.97371.01471.05941.09351.13021.11411.07951.0413
LVGI 1.1791.07951.03181.02690.98660.95850.97460.97570.99241.0014
TATA -0.00810.0131-0.0247-0.0344-0.0438-0.0839-0.0545-0.0517-0.0371-0.0227
M-score -2.10-1.95-2.58-2.67-2.76-3.05-3.04-2.98-2.81-2.70
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK