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Andersons Inc (NAS:ANDE)
Beneish M-Score
-3.04 (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.

Andersons Inc has a M-score of -3.04 suggests that the company is not a manipulator.

ANDE' s 10-Year Beneish M-Score Range
Min: -5.2   Max: -0.49
Current: -3.04

-5.2
-0.49

During the past 13 years, the highest Beneish M-Score of Andersons Inc was -0.49. The lowest was -5.20. 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 Andersons 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 * 0.9757+0.528 * 0.8297+0.404 * 1.1305+0.892 * 0.898+0.115 * 1.0295
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3403+4.679 * -0.0847-0.327 * 0.8724
=-3.04

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $190 Mil.
Revenue was 1312.082 + 1003.294 + 1584.266 + 1181.374 = $5,081 Mil.
Gross Profit was 121.495 + 76.775 + 109.577 + 73.146 = $381 Mil.
Total Current Assets was $865 Mil.
Total Assets was $1,893 Mil.
Property, Plant and Equipment(Net PPE) was $391 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $302 Mil.
Total Current Liabilities was $613 Mil.
Long-Term Debt was $300 Mil.
Net Income was 44.301 + 22.708 + 30.661 + 17.161 = $115 Mil.
Non Operating Income was 36.01 + 40.113 + 31.967 + 29.782 = $138 Mil.
Cash Flow from Operations was 239.028 + -498.613 + 208.227 + 188.63 = $137 Mil.
Accounts Receivable was $216 Mil.
Revenue was 1566.964 + 1271.97 + 1680.641 + 1138.402 = $5,658 Mil.
Gross Profit was 103.229 + 79.273 + 91.169 + 78.316 = $352 Mil.
Total Current Assets was $907 Mil.
Total Assets was $1,821 Mil.
Property, Plant and Equipment(Net PPE) was $372 Mil.
Depreciation, Depletion and Amortization(DDA) was $55 Mil.
Selling, General & Admin. Expense(SGA) was $251 Mil.
Total Current Liabilities was $598 Mil.
Long-Term Debt was $409 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)
=(189.646 / 5081.016) / (216.432 / 5657.977)
=0.03732442 / 0.03825254
=0.9757

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)
=(76.775 / 5657.977) / (121.495 / 5081.016)
=0.06221075 / 0.07498363
=0.8297

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 - (865.193 + 390.587) / 1892.628) / (1 - (907.269 + 371.716) / 1820.981)
=0.33648873 / 0.29763957
=1.1305

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
=5081.016 / 5657.977
=0.898

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))
=(54.661 / (54.661 + 371.716)) / (55.557 / (55.557 + 390.587))
=0.12819875 / 0.12452706
=1.0295

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)
=(302.221 / 5081.016) / (251.091 / 5657.977)
=0.05948043 / 0.04437823
=1.3403

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)
=((300.22 + 613.216) / 1892.628) / ((409.02 + 598.344) / 1820.981)
=0.48262839 / 0.55319852
=0.8724

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
=(114.831 - 137.872 - 137.272) / 1892.628
=-0.0847

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.

Andersons Inc has a M-score of -3.04 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.

Andersons Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.94481.23681.46080.61240.64871.21640.98910.81671.08160.7833
GMI 0.88750.97031.07571.40991.36370.87491.01761.07651.13541.0421
AQI 2.4291.25950.33322.68381.05531.12360.84791.08040.92561.2116
SGI 1.02271.01681.12451.63171.46670.8671.12181.34841.1521.0631
DEPI 0.7480.94012.1460.4481.05780.91931.04471.08321.57490.9613
SGAI 1.05820.97630.91650.65650.7291.26520.87450.86980.93561.0607
LVGI 1.00060.98690.87791.12830.94580.93351.06920.90921.09220.9244
TATA -0.0869-0.02960.09530.1345-0.1977-0.13060.1567-0.141-0.1284-0.1455
M-score -2.44-2.30-1.54-0.79-3.03-3.06-1.70-2.86-2.78-3.19

Andersons Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.72220.76451.13731.08160.84350.87480.77070.78330.98320.9757
GMI 1.07521.10691.08941.13541.17571.16521.18771.04210.95610.8297
AQI 1.17831.07720.89330.92560.5281.03231.23951.21161.24391.1305
SGI 1.28271.11641.1031.1521.14751.20651.1661.06310.98690.898
DEPI 1.13971.47581.42581.57492.24941.09291.10220.96131.00341.0295
SGAI 0.90161.00951.0160.93560.92090.87820.93521.06071.17041.3403
LVGI 0.89721.04241.15961.09221.06190.92590.88360.92440.8810.8724
TATA -0.1513-0.02970.0088-0.1284-0.0651-0.2014-0.255-0.1455-0.0883-0.0847
M-score -3.01-2.60-2.22-2.78-2.76-3.20-3.48-3.19-2.83-3.04
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