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Andersons Inc (NAS:ANDE)
Beneish M-Score
-3.00 (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 -3.00 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: -3

-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 * 0.9236+0.528 * 1.0677+0.404 * 1.0328+0.892 * 0.932+0.115 * 0.8588
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1556+4.679 * -0.0892-0.327 * 0.9226
=-3.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $174 Mil.
Revenue was 859.612 + 1064.244 + 887.879 + 1183.473 = $3,995 Mil.
Gross Profit was 77.015 + 97.042 + 67.755 + 99.164 = $341 Mil.
Total Current Assets was $783 Mil.
Total Assets was $1,984 Mil.
Property, Plant and Equipment(Net PPE) was $460 Mil.
Depreciation, Depletion and Amortization(DDA) was $83 Mil.
Selling, General & Admin. Expense(SGA) was $373 Mil.
Total Current Liabilities was $552 Mil.
Long-Term Debt was $396 Mil.
Net Income was 1.722 + 14.423 + -14.696 + -47.028 = $-46 Mil.
Non Operating Income was 10.638 + 8.026 + -3.731 + -21.3 = $-6 Mil.
Cash Flow from Operations was 235.707 + 73.492 + -267.853 + 96.361 = $138 Mil.
Accounts Receivable was $202 Mil.
Revenue was 909.093 + 1187.704 + 918.225 + 1271.768 = $4,287 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.



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)
=(173.593 / 3995.208) / (201.664 / 4286.79)
=0.0434503 / 0.04704313
=0.9236

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)
=(390.627 / 4286.79) / (340.976 / 3995.208)
=0.09112343 / 0.08534624
=1.0677

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 - (783.293 + 460.247) / 1984.411) / (1 - (904.403 + 495.045) / 2191.694)
=0.37334554 / 0.36147656
=1.0328

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
=3995.208 / 4286.79
=0.932

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))
=(75.063 / (75.063 + 495.045)) / (83.335 / (83.335 + 460.247))
=0.13166453 / 0.15330714
=0.8588

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)
=(372.569 / 3995.208) / (345.929 / 4286.79)
=0.09325397 / 0.08069651
=1.1556

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)
=((395.559 + 552.411) / 1984.411) / ((413.561 + 721.303) / 2191.694)
=0.4777085 / 0.51780221
=0.9226

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
=(-45.579 - -6.367 - 137.707) / 1984.411
=-0.0892

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 -3.00 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.97571.06521.29931.30981.47611.40681.00961.05770.9540.9236
GMI 0.82970.75160.7450.75020.83190.88820.97721.04831.04421.0677
AQI 1.13050.94221.01131.10661.15411.19091.11071.04850.93381.0328
SGI 0.8980.85120.81010.83490.85230.88340.92480.93560.9340.932
DEPI 1.02951.00630.95390.87180.90020.95780.89090.94190.88160.8588
SGAI 1.34031.38771.41381.36061.29651.26411.3211.27941.22631.1556
LVGI 0.87240.93610.93250.98811.0440.99771.00081.00371.00480.9226
TATA -0.0847-0.1583-0.0033-0.0895-0.0930.0205-0.0803-0.0935-0.0275-0.0892
M-score -3.04-3.49-2.57-2.92-2.71-2.15-2.95-2.93-2.77-3.00
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