Switch to:
Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.94 (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 -2.94 suggests that the company is not a manipulator.

ANDE' s 10-Year Beneish M-Score Range
Min: -5.2   Max: -0.43
Current: -2.94

-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 * 1.3005+0.528 * 0.7556+0.404 * 1.024+0.892 * 0.8409+0.115 * 0.9721
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.351+4.679 * -0.0895-0.327 * 0.9881
=-2.94

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $210 Mil.
Revenue was 950.09 + 1271.768 + 952.927 + 1312.082 = $4,487 Mil.
Gross Profit was 83.313 + 113.951 + 84.918 + 121.495 = $404 Mil.
Total Current Assets was $1,174 Mil.
Total Assets was $2,288 Mil.
Property, Plant and Equipment(Net PPE) was $452 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General & Admin. Expense(SGA) was $327 Mil.
Total Current Liabilities was $951 Mil.
Long-Term Debt was $323 Mil.
Net Income was 4.097 + 25.892 + 16.825 + 44.301 = $91 Mil.
Non Operating Income was 6.368 + 25.923 + 25.602 + 36.01 = $94 Mil.
Cash Flow from Operations was -286.659 + -112.345 + 361.859 + 239.028 = $202 Mil.
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 $386 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.



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)
=(209.928 / 4486.867) / (191.972 / 5335.898)
=0.04678721 / 0.03597745
=1.3005

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)
=(113.951 / 5335.898) / (83.313 / 4486.867)
=0.06797862 / 0.08996857
=0.7556

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 - (1173.75 + 451.638) / 2287.627) / (1 - (1138.549 + 386.132) / 2125.583)
=0.28948732 / 0.28269985
=1.024

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
=4486.867 / 5335.898
=0.8409

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))
=(54.362 / (54.362 + 386.132)) / (65.672 / (65.672 + 451.638))
=0.12341144 / 0.12694902
=0.9721

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)
=(326.5 / 4486.867) / (287.41 / 5335.898)
=0.07276792 / 0.05386347
=1.351

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)
=((323.258 + 950.794) / 2287.627) / ((306.161 + 891.905) / 2125.583)
=0.5569317 / 0.56364113
=0.9881

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
=(91.115 - 93.903 - 201.883) / 2287.627
=-0.0895

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 -2.94 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.08160.84350.87480.77070.78330.98320.97571.06521.29931.3005
GMI 1.13541.17571.16521.18771.04210.95610.82970.75160.7450.7556
AQI 0.92560.5281.03231.23951.21162.0571.13050.94220.95041.024
SGI 1.1521.14751.20651.1661.06310.98690.8980.85120.81010.8409
DEPI 1.57492.24941.09291.10220.96130.65191.02951.00631.03870.9721
SGAI 0.93560.92090.87820.93521.06071.17041.34031.38771.41381.351
LVGI 1.09221.06190.92590.88360.92440.8810.87240.93610.93250.9881
TATA -0.1284-0.0651-0.2014-0.255-0.1455-0.0883-0.0847-0.1583-0.0033-0.0895
M-score -2.78-2.76-3.20-3.48-3.19-2.55-3.04-3.49-2.59-2.94
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