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Astec Industries Inc (NAS:ASTE)
Beneish M-Score
-2.73 (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 -2.73 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: -2.73

-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 -2.35.


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 * 1.0816+0.528 * 0.9362+0.404 * 1.0172+0.892 * 0.9833+0.115 * 1.0272
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0303+4.679 * -0.0477-0.327 * 1.1682
=-2.73

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $124.0 Mil.
Revenue was 294.394 + 278.721 + 215.016 + 211.35 = $999.5 Mil.
Gross Profit was 73.452 + 71.956 + 45.426 + 45.138 = $236.0 Mil.
Total Current Assets was $607.0 Mil.
Total Assets was $846.6 Mil.
Property, Plant and Equipment(Net PPE) was $173.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.8 Mil.
Selling, General & Admin. Expense(SGA) was $146.8 Mil.
Total Current Liabilities was $179.2 Mil.
Long-Term Debt was $5.9 Mil.
Net Income was 18.192 + 17.743 + 3.596 + 2.292 = $41.8 Mil.
Non Operating Income was 0.121 + 0.256 + 0.904 + 0.382 = $1.7 Mil.
Cash Flow from Operations was 18.99 + 45.063 + 8.722 + 7.782 = $80.6 Mil.
Accounts Receivable was $116.6 Mil.
Revenue was 268.042 + 288.748 + 239.509 + 220.157 = $1,016.5 Mil.
Gross Profit was 62.233 + 66.045 + 53.12 + 43.261 = $224.7 Mil.
Total Current Assets was $566.7 Mil.
Total Assets was $803.8 Mil.
Property, Plant and Equipment(Net PPE) was $175.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.8 Mil.
Selling, General & Admin. Expense(SGA) was $144.9 Mil.
Total Current Liabilities was $144.9 Mil.
Long-Term Debt was $5.5 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)
=(124.047 / 999.481) / (116.64 / 1016.456)
=0.12411141 / 0.11475165
=1.0816

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)
=(224.659 / 1016.456) / (235.972 / 999.481)
=0.22102186 / 0.23609453
=0.9362

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 - (607.031 + 173.08) / 846.628) / (1 - (566.737 + 174.971) / 803.791)
=0.07856697 / 0.07723774
=1.0172

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
=999.481 / 1016.456
=0.9833

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))
=(24.759 / (24.759 + 174.971)) / (23.754 / (23.754 + 173.08))
=0.12396235 / 0.12068037
=1.0272

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)
=(146.834 / 999.481) / (144.93 / 1016.456)
=0.14691025 / 0.14258364
=1.0303

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)
=((5.857 + 179.218) / 846.628) / ((5.529 + 144.883) / 803.791)
=0.2186025 / 0.18712825
=1.1682

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
=(41.823 - 1.663 - 80.557) / 846.628
=-0.0477

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 -2.73 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.10121.06590.75931.22171.17711.01890.84821.07921.09850.9278
GMI 0.91310.98111.00741.16030.87191.01741.04821.00051.00580.9915
AQI 0.83811.63140.82230.7360.88581.16890.95070.98421.42571.043
SGI 1.15351.22291.12050.7580.99861.23281.03040.99651.04571.0078
DEPI 1.07320.98151.03540.94980.97751.0780.831.03970.93640.9278
SGAI 0.99580.9361.01711.1561.01910.98190.99950.98151.01481.0182
LVGI 0.97851.06690.8850.76651.1161.07010.92960.89571.17190.903
TATA 0.00090.02070.0764-0.08-0.04650.010.01430.04170.0179-0.0014
M-score -2.34-1.89-2.27-2.84-2.69-2.14-2.52-2.18-2.16-2.51

Astec Industries Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.07131.16731.10061.09851.06890.93140.92120.92780.97561.0816
GMI 1.00041.00011.01781.00591.01491.00670.97080.99150.94810.9362
AQI 0.98421.60391.50871.42571.40170.84730.91511.0431.03321.0172
SGI 0.99111.01171.02471.04571.11021.06661.04971.00780.94880.9833
DEPI 1.01661.01630.95850.93640.89670.85580.89010.92780.96811.0272
SGAI 1.00791.011.02661.01480.93690.97860.99321.01821.07861.0303
LVGI 0.92471.05370.99431.17191.06350.93910.95010.9031.07641.1682
TATA 0.0350.0130.02580.01790.01650.01860.0092-0.0014-0.0426-0.0477
M-score -2.24-2.03-2.04-2.16-2.09-2.45-2.51-2.51-2.80-2.73
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