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Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

ANDE' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -0.43
Current: -2.59

-3.19
-0.43

During the past 13 years, the highest Beneish M-Score of Andersons Inc was -0.43. The lowest was -3.19. And the median was -2.57.


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 * 1.2993+0.528 * 0.745+0.404 * 0.9504+0.892 * 0.8101+0.115 * 1.0387
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4138+4.679 * -0.0033-0.327 * 0.9325
=-2.59

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $183 Mil.
Revenue was 1271.768 + 952.927 + 1312.082 + 1003.294 = $4,540 Mil.
Gross Profit was 113.951 + 84.918 + 121.495 + 76.775 = $397 Mil.
Total Current Assets was $1,254 Mil.
Total Assets was $2,365 Mil.
Property, Plant and Equipment(Net PPE) was $454 Mil.
Depreciation, Depletion and Amortization(DDA) was $62 Mil.
Selling, General & Admin. Expense(SGA) was $319 Mil.
Total Current Liabilities was $1,028 Mil.
Long-Term Debt was $299 Mil.
Net Income was 25.892 + 16.825 + 44.301 + 22.708 = $110 Mil.
Non Operating Income was 25.923 + 25.602 + 36.01 + 40.113 = $128 Mil.
Cash Flow from Operations was -112.345 + 361.859 + 239.028 + -498.613 = $-10 Mil.
Accounts Receivable was $174 Mil.
Revenue was 1584.266 + 1181.374 + 1566.964 + 1271.97 = $5,605 Mil.
Gross Profit was 109.577 + 73.146 + 103.229 + 79.273 = $365 Mil.
Total Current Assets was $1,222 Mil.
Total Assets was $2,274 Mil.
Property, Plant and Equipment(Net PPE) was $387 Mil.
Depreciation, Depletion and Amortization(DDA) was $55 Mil.
Selling, General & Admin. Expense(SGA) was $278 Mil.
Total Current Liabilities was $992 Mil.
Long-Term Debt was $375 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)
=(183.059 / 4540.071) / (173.93 / 5604.574)
=0.04032074 / 0.03103358
=1.2993

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)
=(84.918 / 5604.574) / (113.951 / 4540.071)
=0.06516552 / 0.08747418
=0.745

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 - (1254.447 + 453.607) / 2364.692) / (1 - (1221.784 + 387.458) / 2273.556)
=0.27768437 / 0.29219162
=0.9504

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
=4540.071 / 5604.574
=0.8101

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))
=(55.307 / (55.307 + 387.458)) / (62.005 / (62.005 + 453.607))
=0.12491276 / 0.12025515
=1.0387

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)
=(318.881 / 4540.071) / (278.433 / 5604.574)
=0.07023701 / 0.0496796
=1.4138

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)
=((298.638 + 1027.706) / 2364.692) / ((375.213 + 992.333) / 2273.556)
=0.56089503 / 0.60150091
=0.9325

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
=(109.726 - 127.648 - -10.071) / 2364.692
=-0.0033

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 -2.59 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.12811.0480.74260.83471.21640.98910.81671.08160.78331.2993
GMI 0.97551.07711.40991.36370.87491.01761.07651.13541.04210.745
AQI 0.28731.72352.27951.04741.12360.84791.08040.92561.21160.9504
SGI 1.02371.12421.63171.46670.8671.12181.34841.1521.06310.8101
DEPI 2.01760.99990.4481.05780.91931.04471.08321.57490.96131.0387
SGAI 0.96970.91670.64390.7791.20730.87450.86980.93561.06071.4138
LVGI 0.98830.87841.1240.9490.93351.06920.90921.09220.92440.9325
TATA -0.02920.08780.13-0.1956-0.13060.1567-0.141-0.1284-0.1455-0.0033
M-score -2.65-1.53-0.85-2.86-3.05-1.70-2.86-2.78-3.19-2.59

Andersons Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.13731.08160.84350.87480.77070.78330.98320.97571.06521.2993
GMI 1.08941.13541.17571.16521.18771.04210.95610.82970.75160.745
AQI 0.89330.92560.5281.03231.23951.21161.24391.13050.94220.9504
SGI 1.1031.1521.14751.20651.1661.06310.98690.8980.85120.8101
DEPI 1.42581.57492.24941.09291.10220.96131.00341.02951.00631.0387
SGAI 1.0160.93560.92090.87820.93521.06071.17041.34031.38771.4138
LVGI 1.15961.09221.06190.92590.88360.92440.8810.87240.93610.9325
TATA 0.0088-0.1284-0.0651-0.2014-0.255-0.1455-0.0883-0.0847-0.1583-0.0033
M-score -2.22-2.78-2.76-3.20-3.48-3.19-2.83-3.04-3.49-2.59
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