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Astec Industries Inc (NAS:ASTE)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

ASTE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99   Max: -1.89
Current: -2.51

-2.99
-1.89

During the past 13 years, the highest Beneish M-Score of Astec Industries Inc was -1.89. The lowest was -2.99. And the median was -2.45.


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 * 0.9278+0.528 * 0.9915+0.404 * 1.043+0.892 * 1.0078+0.115 * 0.9278
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0182+4.679 * -0.0014-0.327 * 0.903
=-2.51

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $98.9 Mil.
Revenue was 215.016 + 211.35 + 268.042 + 288.748 = $983.2 Mil.
Gross Profit was 45.426 + 45.138 + 62.233 + 66.045 = $218.8 Mil.
Total Current Assets was $541.8 Mil.
Total Assets was $777.4 Mil.
Property, Plant and Equipment(Net PPE) was $170.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.1 Mil.
Selling, General & Admin. Expense(SGA) was $145.2 Mil.
Total Current Liabilities was $142.0 Mil.
Long-Term Debt was $5.2 Mil.
Net Income was 3.596 + 2.292 + 11.805 + 15.105 = $32.8 Mil.
Non Operating Income was 0.904 + 0.382 + 0.146 + 1.624 = $3.1 Mil.
Cash Flow from Operations was 8.722 + 7.782 + 7.766 + 6.596 = $30.9 Mil.
Accounts Receivable was $105.7 Mil.
Revenue was 239.509 + 220.157 + 277.256 + 238.673 = $975.6 Mil.
Gross Profit was 53.12 + 43.261 + 62.178 + 56.757 = $215.3 Mil.
Total Current Assets was $550.0 Mil.
Total Assets was $802.3 Mil.
Property, Plant and Equipment(Net PPE) was $187.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.4 Mil.
Selling, General & Admin. Expense(SGA) was $141.5 Mil.
Total Current Liabilities was $161.1 Mil.
Long-Term Debt was $7.1 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)
=(98.865 / 983.156) / (105.743 / 975.595)
=0.10055881 / 0.10838821
=0.9278

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)
=(45.138 / 975.595) / (45.426 / 983.156)
=0.22070224 / 0.22259133
=0.9915

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 - (541.797 + 170.206) / 777.353) / (1 - (549.991 + 187.61) / 802.265)
=0.08406734 / 0.0806018
=1.043

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
=983.156 / 975.595
=1.0078

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))
=(24.376 / (24.376 + 187.61)) / (24.078 / (24.078 + 170.206))
=0.11498873 / 0.12393198
=0.9278

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)
=(145.179 / 983.156) / (141.489 / 975.595)
=0.14766629 / 0.14502842
=1.0182

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)
=((5.154 + 142.012) / 777.353) / ((7.061 + 161.129) / 802.265)
=0.18931682 / 0.20964395
=0.903

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
=(32.798 - 3.056 - 30.866) / 777.353
=-0.0014

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 -2.51 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 1.10121.06590.75931.22171.12481.01370.89211.07921.09850.9278
GMI 0.91370.98111.00511.1630.88971.0141.03580.99561.00580.9915
AQI 0.83811.63140.82230.7360.88581.16890.95070.98421.42571.043
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 0.99420.93161.02191.1561.01640.98171.00220.98151.01481.0182
LVGI 0.97851.06690.8850.76651.1161.07010.92960.89571.17190.903
TATA 0.00090.02070.0773-0.08-0.04660.00910.01340.04170.0179-0.0014
M-score -2.34-1.89-2.26-2.84-2.69-2.15-2.53-2.18-2.16-2.51

Astec Industries Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.07921.07131.16731.10061.09851.06890.93140.92120.92781.0008
GMI 0.99721.00041.00011.01781.00591.01491.00670.97080.99150.9481
AQI 0.98420.98421.60391.50871.42571.40170.84730.91511.0431.0332
SGI 0.99650.99111.01171.02471.04571.11021.06661.04971.00780.9488
DEPI 1.03971.01661.01630.95850.93640.89670.85580.89010.92781.2445
SGAI 0.98151.00791.011.02661.01480.93690.97860.99321.01821.0786
LVGI 0.89570.92471.05370.99431.17191.06350.93910.95010.9031.0407
TATA 0.04120.0350.0130.02580.01790.01650.01860.0092-0.00140.0109
M-score -2.18-2.24-2.03-2.04-2.16-2.09-2.45-2.51-2.51-2.49
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