M-Score and F-Score models indicators
| Ratio | Formula |
|---|---|
| DSRI | (Net receivables in year t/Sales in year t)/(Net receivables in year t-1/Sales in year t-1) |
| GMI | [(Sales in year t-1 − Cost of goods sold in year t-1)/Sales in year t-1]/[(Sales in year t − Cost of goods sold in year t)/Sales in year t] |
| AQI | [1 − (Current assets in year t + Property, plant & equipment in year t)/Total assets in year t]/[1 − (Current assets in year t-1 + Property, plant & equipment in year t-1)/Total assets in year t-1] |
| SGI | Sales in year t/Sales in year t-1 |
| DEPI | [Depreciation in year t-1/(Depreciation in year t-1 + Property, plant & equipment in year t-1)]/[Depreciation in year t/(Depreciation in year t + Property, plant & equipment in year t)] |
| SGAI | (Sales, general and administrative cost in year t/Sales in year t)/(Sales, general and administrative cost in year t-1/Sales in year t-1) |
| LEVI | [(Current liabilities in year t + Total long term debt in year t)/Total assets in year t]/[(Current liabilities in year t-1 + Total long term debt in year t-1)/Total assets in year t-1] |
| TATA | [(Change in current assets − Change in cash) − (Change in current liabilities − Change in current maturities of long term debt − Change in income tax payable) - Depreciation and amortization in year t]/Total assets in year t] |
| ACCRUALS | (Net income in year t − Cash flow from operation in year t)/Total assets in year t |
| RSST | (ΔWC + ΔNCO + ΔFIN)/Average total assets |
| WC = (Current assets − Cash and Short-term investment) − (Current liabilities − Debt in current liabilities) | |
| NCO = Total assets − Current assets − Investment and advances − (Total liabilities − Current liabilities - Long-term debt) | |
| FIN = (Short-term investment + Long-term investment) − (Long-term debt + Debt in current liabilities + Preferred stock) | |
| CH_REC | (Accounts receivables in year t − Accounts receivables in year t-1)/Average total assets in year t |
| CH_INV | (Inventory in year t − Inventory in year t-1)/Average total assets in year t |
| SOFT_ASSETS | (Total assets in year t - Property, plant & equipment in year t − Cash and cash equivalents in year t)/Total assets in year t |
| CH_CS | (Sales in year t − (Accounts receivables in year t − Accounts receivables t-1))/(Sales in year t-1 − (Accounts receivables in year t-1 − Accounts receivables in year t-2)) − 1 |
| CH_ROA | (Net income in year t/Average total assets in year t) − (Net income in year t-1/Average total assets in year t-1) |
| ISSUE | Dummy variable equals 1 if additional securities were issued during the year of the manipulation and 0 if no securities were issued |
| Ratio | Formula |
|---|---|
| DSRI | (Net receivables in year t/Sales in year t)/(Net receivables in year t-1/Sales in year t-1) |
| GMI | [(Sales in year t-1 − Cost of goods sold in year t-1)/Sales in year t-1]/[(Sales in year t − Cost of goods sold in year t)/Sales in year t] |
| AQI | [1 − (Current assets in year t + Property, plant & equipment in year t)/Total assets in year t]/[1 − (Current assets in year t-1 + Property, plant & equipment in year t-1)/Total assets in year t-1] |
| SGI | Sales in year t/Sales in year t-1 |
| DEPI | [Depreciation in year t-1/(Depreciation in year t-1 + Property, plant & equipment in year t-1)]/[Depreciation in year t/(Depreciation in year t + Property, plant & equipment in year t)] |
| SGAI | (Sales, general and administrative cost in year t/Sales in year t)/(Sales, general and administrative cost in year t-1/Sales in year t-1) |
| LEVI | [(Current liabilities in year t + Total long term debt in year t)/Total assets in year t]/[(Current liabilities in year t-1 + Total long term debt in year t-1)/Total assets in year t-1] |
| TATA | [(Change in current assets − Change in cash) − (Change in current liabilities − Change in current maturities of long term debt − Change in income tax payable) - Depreciation and amortization in year t]/Total assets in year t] |
| ACCRUALS | (Net income in year t − Cash flow from operation in year t)/Total assets in year t |
| RSST | (ΔWC + ΔNCO + ΔFIN)/Average total assets |
| WC = (Current assets − Cash and Short-term investment) − (Current liabilities − Debt in current liabilities) | |
| NCO = Total assets − Current assets − Investment and advances − (Total liabilities − Current liabilities - Long-term debt) | |
| FIN = (Short-term investment + Long-term investment) − (Long-term debt + Debt in current liabilities + Preferred stock) | |
| CH_REC | (Accounts receivables in year t − Accounts receivables in year t-1)/Average total assets in year t |
| CH_INV | (Inventory in year t − Inventory in year t-1)/Average total assets in year t |
| SOFT_ASSETS | (Total assets in year t - Property, plant & equipment in year t − Cash and cash equivalents in year t)/Total assets in year t |
| CH_CS | (Sales in year t − (Accounts receivables in year t − Accounts receivables t-1))/(Sales in year t-1 − (Accounts receivables in year t-1 − Accounts receivables in year t-2)) − 1 |
| CH_ROA | (Net income in year t/Average total assets in year t) − (Net income in year t-1/Average total assets in year t-1) |
| ISSUE | Dummy variable equals 1 if additional securities were issued during the year of the manipulation and 0 if no securities were issued |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.