Switch to:
Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

ANDE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Max: -0.43
Current: -2.95

-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 -2.59.


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 * 1.0096+0.528 * 0.9772+0.404 * 1.1107+0.892 * 0.9248+0.115 * 0.8909
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.321+4.679 * -0.0803-0.327 * 1.0008
=-2.95

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $171 Mil.
Revenue was 1104.14 + 935.774 + 1208.492 + 950.09 = $4,198 Mil.
Gross Profit was 99.164 + 85.19 + 108.173 + 83.313 = $376 Mil.
Total Current Assets was $1,130 Mil.
Total Assets was $2,359 Mil.
Property, Plant and Equipment(Net PPE) was $455 Mil.
Depreciation, Depletion and Amortization(DDA) was $78 Mil.
Selling, General & Admin. Expense(SGA) was $390 Mil.
Total Current Liabilities was $888 Mil.
Long-Term Debt was $436 Mil.
Net Income was -47.028 + -1.227 + 31.092 + 4.097 = $-13 Mil.
Non Operating Income was -21.3 + 7.2 + 29.962 + 6.368 = $22 Mil.
Cash Flow from Operations was 96.361 + 117.171 + 227.261 + -286.659 = $154 Mil.
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 $411 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.



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)
=(170.912 / 4198.496) / (183.059 / 4540.071)
=0.04070791 / 0.04032074
=1.0096

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)
=(85.19 / 4540.071) / (99.164 / 4198.496)
=0.08747418 / 0.08951777
=0.9772

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 - (1129.522 + 455.26) / 2359.101) / (1 - (1254.447 + 411.476) / 2364.692)
=0.3282263 / 0.29550106
=1.1107

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
=4198.496 / 4540.071
=0.9248

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))
=(62.005 / (62.005 + 411.476)) / (78.456 / (78.456 + 455.26))
=0.13095562 / 0.14699953
=0.8909

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)
=(389.561 / 4198.496) / (318.881 / 4540.071)
=0.09278585 / 0.07023701
=1.321

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)
=((436.208 + 888.037) / 2359.101) / ((298.638 + 1027.706) / 2364.692)
=0.56133459 / 0.56089503
=1.0008

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
=(-13.066 - 22.23 - 154.134) / 2359.101
=-0.0803

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 -2.95 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.0480.74260.81011.25340.98910.81671.08160.78331.29931.0096
GMI 1.07711.40991.36370.87491.01761.07651.13541.04210.7450.9772
AQI 1.72352.27951.04741.12360.84791.08040.92561.21161.01131.1107
SGI 1.12421.63171.46670.8671.12181.34841.1521.06310.81010.9248
DEPI 0.99990.4481.05780.91931.04471.08321.57490.96130.95390.8909
SGAI 0.91670.64390.7791.20730.87450.86980.93561.06071.41381.321
LVGI 0.87841.1240.9490.93351.06920.90921.09220.92440.93251.0008
TATA 0.08780.13-0.1956-0.13060.1567-0.141-0.1284-0.1455-0.0033-0.0803
M-score -1.53-0.85-2.88-3.02-1.70-2.86-2.78-3.19-2.57-2.95

Andersons Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.77070.78330.98320.97571.06521.29931.30051.45841.38121.0096
GMI 1.18771.04210.95610.82970.75160.7450.75560.8420.90470.9772
AQI 1.23951.21162.0571.13050.94221.01131.0241.08221.19091.1107
SGI 1.1661.06310.98690.8980.85120.81010.84090.86270.89980.9248
DEPI 1.10220.96130.65191.02951.00630.95390.97210.99260.95780.8909
SGAI 0.93521.06071.17041.34031.38771.41381.3511.28091.24121.321
LVGI 0.88360.92440.8810.87240.93610.93250.98811.0440.99771.0008
TATA -0.255-0.1455-0.0883-0.0847-0.1583-0.0033-0.0895-0.0930.0205-0.0803
M-score -3.48-3.19-2.55-3.04-3.49-2.57-2.94-2.73-2.14-2.95
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)

GuruFocus Premium Plus Membership

FEEDBACK