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Astec Industries, Inc. (NAS:ASTE)
Beneish M-Score
-2.19 (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 -2.19 signals that the company is a manipulator.

ASTE' s 10-Year Beneish M-Score Range
Min: -3.07   Max: -1.88
Current: -2.19

-3.07
-1.88

During the past 13 years, the highest Beneish M-Score of Astec Industries, Inc. was -1.88. The lowest was -3.07. And the median was -2.44.


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 * 1.0682+0.528 * 0.9972+0.404 * 0.9842+0.892 * 0.9965+0.115 * 1.0397
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9815+4.679 * 0.0417-0.327 * 0.8923
=-2.19

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $94.8 Mil.
Revenue was 223.862 + 213.177 + 248.127 + 247.833 = $933.0 Mil.
Gross Profit was 47.324 + 45.787 + 55.442 + 58.567 = $207.1 Mil.
Total Current Assets was $522.4 Mil.
Total Assets was $749.3 Mil.
Property, Plant and Equipment(Net PPE) was $184.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.3 Mil.
Selling, General & Admin. Expense(SGA) was $133.3 Mil.
Total Current Liabilities was $133.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 8.266 + 6.514 + 11.092 + 13.171 = $39.0 Mil.
Non Operating Income was 0.855 + 0.875 + -0.207 + 0.413 = $1.9 Mil.
Cash Flow from Operations was -0.871 + 28.642 + -22.696 + 0.786 = $5.9 Mil.
Accounts Receivable was $89.0 Mil.
Revenue was 227.64 + 218.391 + 238.275 + 251.967 = $936.3 Mil.
Gross Profit was 48.311 + 47.297 + 53.061 + 58.596 = $207.3 Mil.
Total Current Assets was $504.1 Mil.
Total Assets was $728.8 Mil.
Property, Plant and Equipment(Net PPE) was $182.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.0 Mil.
Selling, General & Admin. Expense(SGA) was $136.3 Mil.
Total Current Liabilities was $145.5 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)
=(94.789 / 932.999) / (89.048 / 936.273)
=0.10159604 / 0.09510901
=1.0682

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)
=(45.787 / 936.273) / (47.324 / 932.999)
=0.2213724 / 0.22199381
=0.9972

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 - (522.411 + 184.52) / 749.291) / (1 - (504.084 + 182.839) / 728.783)
=0.05653344 / 0.05743822
=0.9842

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
=932.999 / 936.273
=0.9965

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))
=(23.048 / (23.048 + 182.839)) / (22.265 / (22.265 + 184.52))
=0.1119449 / 0.10767222
=1.0397

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)
=(133.337 / 932.999) / (136.323 / 936.273)
=0.14291226 / 0.14560176
=0.9815

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)
=((0 + 133.531) / 749.291) / ((0 + 145.548) / 728.783)
=0.1782098 / 0.19971377
=0.8923

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
=(39.043 - 1.936 - 5.861) / 749.291
=0.0417

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 -2.19 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.78420.96561.08261.0730.76681.19541.1891.02380.84681.0682
GMI 0.79470.94470.91310.98111.00741.16030.87191.02251.0431.0005
AQI 0.92860.76840.83811.63140.82230.7360.88581.16890.95070.9842
SGI 1.25491.2211.15351.22291.12050.7580.99861.23281.03040.9965
DEPI 1.07411.01831.07320.98151.03540.94980.97751.0780.831.0397
SGAI 0.86080.94380.99580.9361.01711.1561.01910.98190.99950.9815
LVGI 0.82420.70020.97851.06690.8850.76651.1161.07010.92960.8923
TATA -0.0061-0.0310.00090.02070.0764-0.08-0.04650.00910.01430.0417
M-score -2.53-2.47-2.36-1.89-2.26-2.87-2.68-2.14-2.52-2.19

Astec Industries, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.02441.02380.94281.01920.99160.84680.9190.83760.8791.0682
GMI 0.91551.02251.02721.09491.07071.04651.03641.00261.00460.9972
AQI 1.06021.16891.16111.18891.0080.95070.9030.97540.97910.9842
SGI 1.11961.23281.20241.13371.0891.03041.00181.02291.01310.9965
DEPI 1.04591.0781.02750.95240.91320.830.8950.93790.98481.0397
SGAI 1.05920.98190.95270.94320.94730.99951.02461.00120.98980.9815
LVGI 1.05761.07010.95791.01781.0280.92961.04190.9060.93260.8923
TATA 0.03810.00910.01290.01740.00570.0137-0.00160.0305-0.00180.0417
M-score -2.22-2.14-2.19-2.14-2.35-2.52-2.61-2.45-2.57-2.19
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