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Astec Industries Inc (NAS:ASTE)
Beneish M-Score
-2.04 (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 -2.04 signals that the company is a manipulator.

ASTE' s 10-Year Beneish M-Score Range
Min: -3.27   Max: -1.25
Current: -2.04

-3.27
-1.25

During the past 13 years, the highest Beneish M-Score of Astec Industries Inc was -1.25. The lowest was -3.27. 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 * 1.0549+0.528 * 1.0227+0.404 * 1.5087+0.892 * 1.0692+0.115 * 0.9585
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.024+4.679 * 0.0255-0.327 * 0.9943
=-2.04

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $107.2 Mil.
Revenue was 220.157 + 277.256 + 238.673 + 223.862 = $959.9 Mil.
Gross Profit was 43.261 + 62.178 + 56.757 + 47.324 = $209.5 Mil.
Total Current Assets was $531.6 Mil.
Total Assets was $788.6 Mil.
Property, Plant and Equipment(Net PPE) was $190.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.8 Mil.
Selling, General & Admin. Expense(SGA) was $141.1 Mil.
Total Current Liabilities was $150.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 1.916 + 14.497 + 9.545 + 8.266 = $34.2 Mil.
Non Operating Income was 0.263 + 0.221 + 0.814 + 0.855 = $2.2 Mil.
Cash Flow from Operations was -0.177 + 11.918 + 1.104 + -0.871 = $12.0 Mil.
Accounts Receivable was $95.0 Mil.
Revenue was 213.177 + 248.127 + 247.833 + 188.719 = $897.9 Mil.
Gross Profit was 45.787 + 55.442 + 58.567 + 40.619 = $200.4 Mil.
Total Current Assets was $521.6 Mil.
Total Assets was $750.1 Mil.
Property, Plant and Equipment(Net PPE) was $186.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.2 Mil.
Selling, General & Admin. Expense(SGA) was $128.9 Mil.
Total Current Liabilities was $143.6 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)
=(107.167 / 959.948) / (95.023 / 897.856)
=0.11163834 / 0.10583323
=1.0549

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)
=(62.178 / 897.856) / (43.261 / 959.948)
=0.22321508 / 0.21826182
=1.0227

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 - (531.632 + 190.395) / 788.581) / (1 - (521.559 + 186.546) / 750.063)
=0.08439716 / 0.0559393
=1.5087

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
=959.948 / 897.856
=1.0692

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))
=(22.189 / (22.189 + 186.546)) / (23.75 / (23.75 + 190.395))
=0.10630225 / 0.11090616
=0.9585

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)
=(141.078 / 959.948) / (128.854 / 897.856)
=0.14696421 / 0.14351299
=1.024

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 + 150.093) / 788.581) / ((0 + 143.575) / 750.063)
=0.19033302 / 0.19141725
=0.9943

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
=(34.224 - 2.153 - 11.974) / 788.581
=0.0255

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 -2.04 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 0.83540.9421.10111.06590.75931.22171.12481.01370.89211.0792
GMI 0.81310.94410.91370.98111.00511.1630.88971.0141.03580.9956
AQI 0.93140.76850.8381.63140.82230.7360.88581.16890.95630.9786
SGI 1.18271.2211.15351.22291.12050.7581.0451.23910.97960.9965
DEPI 1.07411.01831.07320.98151.03540.94980.97751.0780.831.0397
SGAI 0.86440.94540.99420.93161.02191.1561.01640.98171.00220.9815
LVGI 0.8210.70020.97851.06690.8850.76651.1161.07010.92740.8944
TATA -0.002-0.03110.00090.02070.0773-0.08-0.04660.00910.01350.0417
M-score -2.51-2.50-2.34-1.89-2.26-2.84-2.69-2.15-2.53-2.18

Astec Industries Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.97320.93010.89210.98310.93381.0181.07921.05451.12981.0549
GMI 1.09261.06861.03581.01440.98010.98420.99561.00471.00591.0227
AQI 1.18891.0080.95630.9030.97540.97910.97860.98421.60391.5087
SGI 1.17921.14420.97960.92470.91330.88830.99651.00691.04521.0692
DEPI 0.95240.91320.830.8950.93790.98481.03971.01661.01630.9585
SGAI 0.93980.94581.00221.03211.01360.99710.98151.00481.00461.024
LVGI 1.01781.0280.92741.04190.9060.93260.89440.92471.05370.9943
TATA 0.01740.00560.0135-0.00230.0095-0.00240.04120.03470.01280.0255
M-score -2.14-2.36-2.53-2.64-2.57-2.57-2.19-2.24-2.03-2.04
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