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Astec Industries Inc (NAS:ASTE)
Beneish M-Score
-2.09 (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.

Astec Industries Inc has a M-score of -2.09 signals that the company is a manipulator.

ASTE' s 10-Year Beneish M-Score Range
Min: -3.27   Max: -1.25
Current: -2.09

-3.27
-1.25

During the past 13 years, the highest Beneish M-Score of Astec Industries Inc was -1.25. The lowest was -3.27. And the median was -2.35.


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 Astec Industries 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 * 1.0689+0.528 * 1.0149+0.404 * 1.4017+0.892 * 1.1102+0.115 * 0.8967
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9369+4.679 * 0.0165-0.327 * 1.0635
=-2.09

* 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 $125.7 Mil.
Revenue was 288.748 + 239.509 + 220.157 + 277.256 = $1,025.7 Mil.
Gross Profit was 66.045 + 53.12 + 43.261 + 62.178 = $224.6 Mil.
Total Current Assets was $568.2 Mil.
Total Assets was $814.1 Mil.
Property, Plant and Equipment(Net PPE) was $184.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.9 Mil.
Selling, General & Admin. Expense(SGA) was $141.9 Mil.
Total Current Liabilities was $165.9 Mil.
Long-Term Debt was $5.1 Mil.
Net Income was 15.105 + 8.5 + 1.916 + 14.497 = $40.0 Mil.
Non Operating Income was 1.624 + 0.12 + 0.263 + 0.221 = $2.2 Mil.
Cash Flow from Operations was 6.596 + 6.018 + -0.177 + 11.918 = $24.4 Mil.
Accounts Receivable was $105.9 Mil.
Revenue was 238.673 + 223.862 + 213.177 + 248.127 = $923.8 Mil.
Gross Profit was 56.757 + 47.324 + 45.787 + 55.442 = $205.3 Mil.
Total Current Assets was $545.4 Mil.
Total Assets was $774.7 Mil.
Property, Plant and Equipment(Net PPE) was $187.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.4 Mil.
Selling, General & Admin. Expense(SGA) was $136.4 Mil.
Total Current Liabilities was $153.0 Mil.
Long-Term Debt was $0.0 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)
=(125.72 / 1025.67) / (105.939 / 923.839)
=0.12257354 / 0.11467258
=1.0689

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)
=(53.12 / 923.839) / (66.045 / 1025.67)
=0.22223569 / 0.21898271
=1.0149

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 - (568.211 + 184.922) / 814.073) / (1 - (545.437 + 187.895) / 774.704)
=0.07485815 / 0.05340362
=1.4017

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
=1025.67 / 923.839
=1.1102

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))
=(22.365 / (22.365 + 187.895)) / (24.888 / (24.888 + 184.922))
=0.10636831 / 0.11862161
=0.8967

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)
=(141.869 / 1025.67) / (136.394 / 923.839)
=0.13831837 / 0.14763828
=0.9369

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)
=((5.084 + 165.851) / 814.073) / ((0 + 152.96) / 774.704)
=0.20997503 / 0.19744315
=1.0635

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
=(40.018 - 2.228 - 24.355) / 814.073
=0.0165

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.

Astec Industries Inc has a M-score of -2.09 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.

Astec Industries Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.94191.10121.06590.75931.22171.17711.01890.84821.07921.0985
GMI 0.94470.91310.98111.00741.16030.87191.02251.0431.00051.0058
AQI 0.76840.83811.63140.82230.7360.88581.16890.95070.98421.4201
SGI 1.2211.15351.22291.12050.7580.99861.23281.03040.99651.0457
DEPI 1.01831.07320.98151.03540.94980.97751.0780.831.03970.9364
SGAI 0.94380.99580.9361.01711.1561.01910.98190.99950.98151.0148
LVGI 0.70020.97851.06690.8850.76651.1161.07010.92960.89571.1673
TATA -0.0310.00090.02070.0764-0.08-0.04650.00910.01430.04170.0179
M-score -2.49-2.34-1.89-2.27-2.84-2.69-2.14-2.52-2.18-2.16

Astec Industries Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.84820.90740.83370.89271.07921.07131.16731.10061.09851.0689
GMI 1.04651.03641.00261.00460.99721.00041.00011.01781.00591.0149
AQI 0.95070.9030.97540.97910.98420.98421.60391.50871.42011.4017
SGI 1.03041.00181.02291.01310.99650.99111.01171.02471.04571.1102
DEPI 0.830.8950.93790.98481.03971.01661.01630.95850.93640.8967
SGAI 0.99951.02461.00120.98980.98151.00791.011.02661.01480.9369
LVGI 0.92961.04190.9060.93260.89570.92471.05370.99431.16731.0635
TATA 0.0137-0.0020.0097-0.00220.04120.0350.0130.02580.01790.0165
M-score -2.52-2.62-2.55-2.56-2.18-2.24-2.03-2.04-2.16-2.09
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