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Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

ANDE' s 10-Year Beneish M-Score Range
Min: -5.2   Max: -0.5
Current: -2.83

-5.2
-0.5

During the past 13 years, the highest Beneish M-Score of Andersons Inc was -0.50. The lowest was -5.20. And the median was -2.48.


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 * 0.9832+0.528 * 0.9561+0.404 * 1.2439+0.892 * 0.9869+0.115 * 1.0034
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1704+4.679 * -0.0883-0.327 * 0.881
=-2.83

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $192 Mil.
Revenue was 1003.294 + 1584.266 + 1181.374 + 1566.964 = $5,336 Mil.
Gross Profit was 76.775 + 109.577 + 73.146 + 103.229 = $363 Mil.
Total Current Assets was $1,139 Mil.
Total Assets was $2,126 Mil.
Property, Plant and Equipment(Net PPE) was $624 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General & Admin. Expense(SGA) was $287 Mil.
Total Current Liabilities was $892 Mil.
Long-Term Debt was $306 Mil.
Net Income was 22.708 + 30.661 + 17.161 + 29.539 = $100 Mil.
Non Operating Income was 40.113 + 31.967 + 29.782 + 11.302 = $113 Mil.
Cash Flow from Operations was -498.613 + 208.227 + 188.63 + 276.314 = $175 Mil.
Accounts Receivable was $198 Mil.
Revenue was 1271.97 + 1680.641 + 1138.402 + 1315.834 = $5,407 Mil.
Gross Profit was 79.273 + 91.169 + 78.316 + 102.65 = $351 Mil.
Total Current Assets was $1,247 Mil.
Total Assets was $2,152 Mil.
Property, Plant and Equipment(Net PPE) was $609 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General & Admin. Expense(SGA) was $249 Mil.
Total Current Liabilities was $964 Mil.
Long-Term Debt was $413 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)
=(191.972 / 5335.898) / (197.842 / 5406.847)
=0.03597745 / 0.03659101
=0.9832

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)
=(109.577 / 5406.847) / (76.775 / 5335.898)
=0.06499315 / 0.06797862
=0.9561

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 - (1138.549 + 623.666) / 2125.583) / (1 - (1247.05 + 609.013) / 2151.788)
=0.17094981 / 0.13743222
=1.2439

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
=5335.898 / 5406.847
=0.9869

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))
=(53.283 / (53.283 + 609.013)) / (54.362 / (54.362 + 623.666))
=0.08045194 / 0.08017663
=1.0034

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)
=(287.41 / 5335.898) / (248.837 / 5406.847)
=0.05386347 / 0.04602257
=1.1704

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)
=((306.161 + 891.905) / 2125.583) / ((412.7 + 964.029) / 2151.788)
=0.56364113 / 0.63980699
=0.881

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
=(100.069 - 113.164 - 174.558) / 2125.583
=-0.0883

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 -2.83 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 0.9451.22841.09970.63240.81011.25340.98910.81671.08160.7833
GMI 0.88730.97551.07711.40991.36370.87491.01761.07651.13541.0421
AQI 2.44170.28731.72352.27951.04741.12360.84791.08040.92561.2116
SGI 1.02251.02371.12421.63171.46670.8671.12181.34841.1521.0631
DEPI 0.7482.01760.99990.4481.05780.91931.04471.08321.57490.9613
SGAI 1.05840.96970.91670.64390.7791.20730.87450.86980.93561.0607
LVGI 0.99920.98830.87841.1240.9490.93351.06920.90921.09220.9244
TATA -0.0868-0.02920.08780.13-0.1956-0.13060.1567-0.141-0.1284-0.1455
M-score -2.43-2.56-1.48-0.96-2.88-3.02-1.70-2.86-2.78-3.19

Andersons Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.81670.72220.76451.13731.08160.84350.87480.77070.78330.9832
GMI 1.07651.07521.10691.08941.13541.17571.16521.18771.04210.9561
AQI 1.08041.17831.07720.89330.92560.5281.03231.23951.21161.2439
SGI 1.34841.28271.11641.1031.1521.14751.20651.1661.06310.9869
DEPI 1.08321.13971.47581.42581.57492.24941.09291.10220.96131.0034
SGAI 0.86980.90161.00951.0160.93560.92090.87820.93521.06071.1704
LVGI 0.90920.89721.04241.15961.09221.06190.92590.88360.92440.881
TATA -0.141-0.1513-0.02970.0088-0.1284-0.0651-0.2014-0.255-0.1455-0.0883
M-score -2.86-3.01-2.60-2.22-2.78-2.76-3.20-3.48-3.19-2.83
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