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Astec Industries Inc (NAS:ASTE)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

ASTE' s 10-Year Beneish M-Score Range
Min: -3.26   Max: -1.25
Current: -2.26

-3.26
-1.25

During the past 13 years, the highest Beneish M-Score of Astec Industries Inc was -1.25. The lowest was -3.26. 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 * 1.0522+0.528 * 1.0004+0.404 * 0.9842+0.892 * 0.9911+0.115 * 1.0166
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0079+4.679 * 0.0347-0.327 * 0.9247
=-2.26

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $109.1 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.
Net Income was 9.545 + 8.266 + 6.514 + 11.092 = $35.4 Mil.
Non Operating Income was 0.814 + 0.855 + 0.875 + -0.207 = $2.3 Mil.
Cash Flow from Operations was 1.104 + -0.871 + 28.642 + -22.696 = $6.2 Mil.
Accounts Receivable was $104.6 Mil.
Revenue was 247.833 + 227.64 + 218.391 + 238.275 = $932.1 Mil.
Gross Profit was 58.567 + 48.311 + 47.297 + 53.061 = $207.2 Mil.
Total Current Assets was $526.5 Mil.
Total Assets was $753.6 Mil.
Property, Plant and Equipment(Net PPE) was $186.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.6 Mil.
Selling, General & Admin. Expense(SGA) was $136.5 Mil.
Total Current Liabilities was $160.9 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)
=(109.08 / 923.839) / (104.599 / 932.139)
=0.11807252 / 0.11221395
=1.0522

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)
=(47.324 / 932.139) / (56.757 / 923.839)
=0.22232307 / 0.22223569
=1.0004

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 - (545.437 + 187.895) / 774.704) / (1 - (526.514 + 186.192) / 753.596)
=0.05340362 / 0.05425984
=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
=923.839 / 932.139
=0.9911

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))
=(22.575 / (22.575 + 186.192)) / (22.365 / (22.365 + 187.895))
=0.10813491 / 0.10636831
=1.0166

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)
=(136.394 / 923.839) / (136.547 / 932.139)
=0.14763828 / 0.14648781
=1.0079

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 + 152.96) / 774.704) / ((0 + 160.915) / 753.596)
=0.19744315 / 0.21352953
=0.9247

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
=(35.417 - 2.337 - 6.179) / 774.704
=0.0347

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 -2.26 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.

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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.02380.94281.01920.99160.84680.9190.83760.8791.06821.0522
GMI 1.02251.02721.09491.07071.04651.03641.00261.00460.99721.0004
AQI 1.16891.16111.18891.0080.95070.9030.97540.97910.98420.9842
SGI 1.23281.20241.13371.0891.03041.00181.02291.01310.99650.9911
DEPI 1.0781.02750.95240.91320.830.8950.93790.98481.03971.0166
SGAI 0.98190.95270.94320.94730.99951.02461.00120.98980.98151.0079
LVGI 1.07010.95791.01781.0280.92961.04190.9060.93260.89230.9247
TATA 0.00910.01290.01740.00570.0137-0.0020.03-0.00220.04120.0347
M-score -2.14-2.19-2.14-2.35-2.52-2.61-2.45-2.57-2.19-2.26
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