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Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

ANDE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.33   Max: -0.43
Current: -2.78

-5.33
-0.43

During the past 13 years, the highest Beneish M-Score of Andersons Inc was -0.43. The lowest was -5.33. And the median was -2.55.


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 * 0.9665+0.528 * 1.0306+0.404 * 0.9338+0.892 * 0.9218+0.115 * 0.8816
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2425+4.679 * -0.0275-0.327 * 1.0048
=-2.78

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $213 Mil.
Revenue was 1064.244 + 887.879 + 1104.14 + 935.774 = $3,992 Mil.
Gross Profit was 97.042 + 67.755 + 99.164 + 85.19 = $349 Mil.
Total Current Assets was $896 Mil.
Total Assets was $2,107 Mil.
Property, Plant and Equipment(Net PPE) was $447 Mil.
Depreciation, Depletion and Amortization(DDA) was $83 Mil.
Selling, General & Admin. Expense(SGA) was $383 Mil.
Total Current Liabilities was $668 Mil.
Long-Term Debt was $399 Mil.
Net Income was 14.423 + -14.696 + -47.028 + -1.227 = $-49 Mil.
Non Operating Income was 8.026 + -3.731 + -21.3 + 7.2 = $-10 Mil.
Cash Flow from Operations was 73.492 + -267.853 + 96.361 + 117.171 = $19 Mil.
Accounts Receivable was $239 Mil.
Revenue was 1187.704 + 918.225 + 1271.768 + 952.927 = $4,331 Mil.
Gross Profit was 108.173 + 83.313 + 113.951 + 84.918 = $390 Mil.
Total Current Assets was $879 Mil.
Total Assets was $2,152 Mil.
Property, Plant and Equipment(Net PPE) was $437 Mil.
Depreciation, Depletion and Amortization(DDA) was $70 Mil.
Selling, General & Admin. Expense(SGA) was $334 Mil.
Total Current Liabilities was $667 Mil.
Long-Term Debt was $417 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)
=(212.588 / 3992.037) / (238.601 / 4330.624)
=0.05325301 / 0.05509622
=0.9665

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)
=(390.355 / 4330.624) / (349.151 / 3992.037)
=0.09013828 / 0.08746186
=1.0306

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 - (895.872 + 447.267) / 2107.415) / (1 - (879.417 + 437.074) / 2152.365)
=0.36266042 / 0.38835142
=0.9338

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
=3992.037 / 4330.624
=0.9218

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))
=(70.167 / (70.167 + 437.074)) / (83.239 / (83.239 + 447.267))
=0.13833069 / 0.15690492
=0.8816

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)
=(382.5 / 3992.037) / (333.968 / 4330.624)
=0.09581575 / 0.07711775
=1.2425

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)
=((398.746 + 668.141) / 2107.415) / ((417.279 + 667.211) / 2152.365)
=0.50625387 / 0.50385971
=1.0048

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
=(-48.528 - -9.805 - 19.171) / 2107.415
=-0.0275

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 -2.78 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 0.08780.1156-0.2194-0.14670.1567-0.141-0.1284-0.1455-0.0033-0.0803
M-score -1.53-0.92-2.99-3.09-1.70-2.86-2.78-3.19-2.57-2.95

Andersons Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.98320.97571.06521.29931.30981.47611.39811.02241.07120.9665
GMI 0.95610.82970.75160.7450.75020.83190.89380.96491.03511.0306
AQI 2.0571.13050.94221.01131.10661.15411.19091.11071.04850.9338
SGI 0.98690.8980.85120.81010.83490.85230.88890.91320.92380.9218
DEPI 0.65191.02951.00630.95390.87180.90020.95780.89090.94190.8816
SGAI 1.17041.34031.38771.41381.36061.29651.25631.33781.29581.2425
LVGI 0.8810.87240.93610.93250.98811.0440.99771.00081.00371.0048
TATA -0.0883-0.0847-0.1583-0.0033-0.0895-0.0930.0205-0.0803-0.0935-0.0275
M-score -2.55-3.04-3.49-2.57-2.92-2.71-2.14-2.96-2.94-2.78
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