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Astec Industries Inc (NAS:ASTE)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

ASTE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Max: -1.25
Current: -2.71

-3.38
-1.25

During the past 13 years, the highest Beneish M-Score of Astec Industries Inc was -1.25. The lowest was -3.38. And the median was -2.36.


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 * 1.0179+0.528 * 0.9458+0.404 * 1.3988+0.892 * 1.028+0.115 * 1.0437
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9904+4.679 * -0.0705-0.327 * 1.2511
=-2.71

* 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 $108 Mil.
Revenue was 247.752 + 294.394 + 278.721 + 215.016 = $1,036 Mil.
Gross Profit was 55.389 + 73.452 + 71.956 + 45.426 = $246 Mil.
Total Current Assets was $591 Mil.
Total Assets was $862 Mil.
Property, Plant and Equipment(Net PPE) was $178 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General & Admin. Expense(SGA) was $150 Mil.
Total Current Liabilities was $190 Mil.
Long-Term Debt was $5 Mil.
Net Income was 6.838 + 18.192 + 17.743 + 3.596 = $46 Mil.
Non Operating Income was 0.327 + 0.121 + 0.256 + 0.904 = $2 Mil.
Cash Flow from Operations was 32.72 + 18.99 + 45.063 + 8.722 = $105 Mil.
Accounts Receivable was $104 Mil.
Revenue was 211.35 + 268.042 + 288.748 + 239.509 = $1,008 Mil.
Gross Profit was 45.138 + 62.233 + 66.045 + 53.12 = $227 Mil.
Total Current Assets was $556 Mil.
Total Assets was $787 Mil.
Property, Plant and Equipment(Net PPE) was $171 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General & Admin. Expense(SGA) was $147 Mil.
Total Current Liabilities was $138 Mil.
Long-Term Debt was $4 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)
=(108.436 / 1035.883) / (103.629 / 1007.649)
=0.10467978 / 0.10284236
=1.0179

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)
=(226.536 / 1007.649) / (246.223 / 1035.883)
=0.22481638 / 0.23769383
=0.9458

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 - (590.567 + 178.167) / 861.839) / (1 - (555.974 + 170.508) / 787.287)
=0.10803062 / 0.07723359
=1.3988

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
=1035.883 / 1007.649
=1.028

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))
=(24.269 / (24.269 + 170.508)) / (24.154 / (24.154 + 178.167))
=0.1245989 / 0.11938454
=1.0437

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)
=(149.761 / 1035.883) / (147.086 / 1007.649)
=0.14457328 / 0.14596948
=0.9904

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)
=((4.781 + 190.206) / 861.839) / ((4.394 + 137.974) / 787.287)
=0.22624527 / 0.18083367
=1.2511

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
=(46.369 - 1.608 - 105.495) / 861.839
=-0.0705

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 -2.71 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.

Astec Industries Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.10121.06590.75931.22171.12481.01370.89211.07921.09850.9278
GMI 0.91310.98111.00741.16030.88971.0141.03580.99561.00580.9915
AQI 0.83811.63140.82230.7360.88581.16890.95630.97861.42011.0472
SGI 1.15351.22291.12050.7581.0451.23910.97960.99651.04571.0078
DEPI 1.07320.98151.03540.94980.97751.0780.831.03970.93640.9278
SGAI 0.99580.9361.01711.1561.01640.98171.00220.98151.01481.0182
LVGI 0.97851.06690.8850.76651.1161.07010.92740.89781.16730.9066
TATA 0.00090.02070.0764-0.08-0.04660.00910.01350.04170.0179-0.0014
M-score -2.34-1.89-2.27-2.84-2.69-2.15-2.53-2.18-2.16-2.51

Astec Industries Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.12981.05491.09851.06890.93140.92120.92780.97561.08161.0179
GMI 1.00591.02271.00591.01491.00670.97080.99150.94810.93620.9458
AQI 1.60391.50871.42011.40170.84730.91511.04721.03321.01721.3988
SGI 1.04521.06921.04571.11021.06661.04971.00780.94880.98331.028
DEPI 1.01630.95850.93640.89670.85580.89010.92780.96811.02721.0437
SGAI 1.00461.0241.01480.93690.97860.99321.01821.07861.03030.9904
LVGI 1.05370.99431.16731.06350.93910.95010.90661.07641.16821.2511
TATA -0.00590.02550.01760.01650.01860.0092-0.0014-0.0426-0.0477-0.0705
M-score -2.12-2.04-2.16-2.09-2.45-2.51-2.51-2.80-2.73-2.71
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