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Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.14 (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 -2.14 signals that the company is a manipulator.

ANDE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.2   Max: -0.43
Current: -2.14

-5.2
-0.43

During the past 13 years, the highest Beneish M-Score of Andersons Inc was -0.43. The lowest was -5.20. And the median was -2.51.


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 * 1.3812+0.528 * 0.9047+0.404 * 1.1909+0.892 * 0.8998+0.115 * 0.9578
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2412+4.679 * 0.0205-0.327 * 0.9977
=-2.14

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $202 Mil.
Revenue was 935.774 + 1208.492 + 950.09 + 1271.768 = $4,366 Mil.
Gross Profit was 85.19 + 108.173 + 83.313 + 113.951 = $391 Mil.
Total Current Assets was $904 Mil.
Total Assets was $2,192 Mil.
Property, Plant and Equipment(Net PPE) was $495 Mil.
Depreciation, Depletion and Amortization(DDA) was $75 Mil.
Selling, General & Admin. Expense(SGA) was $346 Mil.
Total Current Liabilities was $721 Mil.
Long-Term Debt was $414 Mil.
Net Income was -1.227 + 31.092 + 4.097 + 25.892 = $60 Mil.
Non Operating Income was 7.2 + 29.962 + 6.368 + 25.923 = $69 Mil.
Cash Flow from Operations was 117.171 + 227.261 + -286.659 + -112.345 = $-55 Mil.
Accounts Receivable was $162 Mil.
Revenue was 952.927 + 1312.082 + 1003.294 + 1584.266 = $4,853 Mil.
Gross Profit was 84.918 + 121.495 + 76.775 + 109.577 = $393 Mil.
Total Current Assets was $1,049 Mil.
Total Assets was $2,083 Mil.
Property, Plant and Equipment(Net PPE) was $402 Mil.
Depreciation, Depletion and Amortization(DDA) was $58 Mil.
Selling, General & Admin. Expense(SGA) was $310 Mil.
Total Current Liabilities was $792 Mil.
Long-Term Debt was $289 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)
=(201.664 / 4366.124) / (162.27 / 4852.569)
=0.04618834 / 0.03344002
=1.3812

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)
=(108.173 / 4852.569) / (85.19 / 4366.124)
=0.0809396 / 0.08946768
=0.9047

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 - (904.403 + 495.045) / 2191.694) / (1 - (1048.915 + 401.8) / 2082.992)
=0.36147656 / 0.30354269
=1.1909

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
=4366.124 / 4852.569
=0.8998

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))
=(57.979 / (57.979 + 401.8)) / (75.063 / (75.063 + 495.045))
=0.12610189 / 0.13166453
=0.9578

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)
=(345.929 / 4366.124) / (309.765 / 4852.569)
=0.07923023 / 0.06383526
=1.2412

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)
=((413.561 + 721.303) / 2191.694) / ((289.448 + 791.628) / 2082.992)
=0.51780221 / 0.51900151
=0.9977

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
=(59.854 - 69.453 - -54.572) / 2191.694
=0.0205

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 -2.14 signals that the company is likely to 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 1.12811.0480.74260.81011.25340.98910.81671.08160.78331.2993
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 -2.65-1.53-0.85-2.88-3.02-1.70-2.86-2.78-3.19-2.59

Andersons Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.87480.77070.78330.98320.97571.06521.29931.30051.45841.3812
GMI 1.16521.18771.04210.95610.82970.75160.7450.75560.8420.9047
AQI 1.03231.23951.21162.0571.13050.94220.95041.0241.08221.1909
SGI 1.20651.1661.06310.98690.8980.85120.81010.84090.86270.8998
DEPI 1.09291.10220.96130.65191.02951.00631.03870.97210.99260.9578
SGAI 0.87820.93521.06071.17041.34031.38771.41381.3511.28091.2412
LVGI 0.92590.88360.92440.8810.87240.93610.93250.98811.0440.9977
TATA -0.2014-0.255-0.1455-0.0883-0.0847-0.1583-0.0033-0.0895-0.0930.0205
M-score -3.20-3.48-3.19-2.55-3.04-3.49-2.59-2.94-2.73-2.14
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