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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.
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.
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.
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.
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:
M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
= | -4.84 | + | 0.92 * 0.8695 | + | 0.528 * 1.0032 | + | 0.404 * 0.9413 | + | 0.892 * 0.9957 | + | 0.115 * 0.9732 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.0231 | + | 4.679 * -0.082618 | - | 0.327 * 0.9013 | |||||||
= | -2.99 |
* 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.
This Year (Jun16) TTM: | Last Year (Jun15) TTM: |
Total Receivables was $2,896 Mil. Revenue was 6017 + 5475 + 7015 + 6079 = $24,586 Mil. Gross Profit was 3736 + 3260 + 4360 + 3705 = $15,061 Mil. Total Current Assets was $16,550 Mil. Total Assets was $46,745 Mil. Property, Plant and Equipment(Net PPE) was $3,725 Mil. Depreciation, Depletion and Amortization(DDA) was $1,950 Mil. Selling, General, & Admin. Expense(SGA) was $8,414 Mil. Total Current Liabilities was $11,403 Mil. Long-Term Debt & Capital Lease Obligation was $5,479 Mil. Net Income was 581 + 268 + 771 + 480 = $2,100 Mil. Non Operating Income was 12 + 17 + 73 + 47 = $149 Mil. Cash Flow from Operations was 1608 + 932 + 1870 + 1403 = $5,813 Mil. |
Total Receivables was $3,345 Mil. Revenue was 5997 + 5613 + 7049 + 6032 = $24,691 Mil. Gross Profit was 3587 + 3339 + 4505 + 3743 = $15,174 Mil. Total Current Assets was $14,087 Mil. Total Assets was $44,867 Mil. Property, Plant and Equipment(Net PPE) was $3,788 Mil. Depreciation, Depletion and Amortization(DDA) was $1,903 Mil. Selling, General, & Admin. Expense(SGA) was $8,259 Mil. Total Current Liabilities was $12,507 Mil. Long-Term Debt & Capital Lease Obligation was $5,472 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) |
= | (2896 / 24586) | / | (3345 / 24691) | |
= | 0.117791 | / | 0.135474 | |
= | 0.8695 |
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) | |
= | (15174 / 24691) | / | (15061 / 24586) | |
= | 0.614556 | / | 0.612584 | |
= | 1.0032 |
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 - (16550 + 3725) / 46745) | / | (1 - (14087 + 3788) / 44867) | |
= | 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 | |
= | 24586 | / | 24691 | |
= | 0.9957 |
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)) |
= | (1903 / (1903 + 3788)) | / | (1950 / (1950 + 3725)) | |
= | 0.334388 | / | 0.343612 | |
= | 0.9732 |
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) |
= | (8414 / 24586) | / | (8259 / 24691) | |
= | 0.342227 | / | 0.334494 | |
= | 1.0231 |
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) |
= | ((5479 + 11403) / 46745) | / | ((5472 + 12507) / 44867) | |
= | 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 | |
= | (2100 - 149 | - | 5813) | / | 46745 | |
= | -0.082618 |
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 -2.99 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of EMC's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Laura Sen | director | ONE MERCER ROAD, P.O. BOX 9601, NATICK MA 01760-9601 |
John R Egan | director | 176 SOUTH ST., HOPKINTON MA 01748 |
Donald J Carty | director | C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244 |
Judith A Miscik | director | 300 RENAISSANCE CENTER, M/C: 482-C24-A68, DETROIT MI 48265 |
William D Green | director | C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601 |
William F Scannell | officer: President,Global Sales/Cust Op | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Randolph L Cowen | director | 176 SOUTH STREET HOPKINTON MA 01748 |
Howard D Elias | officer: President & COO, Glob Ent Srvs | C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Paul T Dacier | officer: EVP & General Counsel | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Erin Mcsweeney | officer: EVP, Human Resources | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
Teuber William J Jr | officer: Vice Chairman | EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748 |
James S Distasio | director | C/O EVERSOURCE ENERGY, 300 CADWELL DRIVE, BOSTON MA 01104 |
Paul Sagan | director | AKAMAI TECHNOLOGIES INC, 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142 |
Jeremy Burton | officer: President, Prod & Marketing | C/O SNOWFLAKE INC., 106 EAST BABCOCK STREET SUITE 3A, BOZEMAN MT 59715 |
David I Goulden | officer: CEO, EMCII | 176 SOUTH STREET, HOPKINTON MA 01748 |
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