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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: -3.26   Max: -1.25
Current: -2.04

-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 -2.37.


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 * 1.114+0.528 * 1.0059+0.404 * 1.6039+0.892 * 1.0452+0.115 * 1.0163
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0046+4.679 * 0.0128-0.327 * 1.0537
=-2.04

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $119.7 Mil.
Revenue was 277.256 + 238.673 + 223.862 + 213.177 = $953.0 Mil.
Gross Profit was 62.178 + 56.757 + 47.324 + 45.787 = $212.0 Mil.
Total Current Assets was $536.4 Mil.
Total Assets was $803.1 Mil.
Property, Plant and Equipment(Net PPE) was $193.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.0 Mil.
Selling, General & Admin. Expense(SGA) was $138.8 Mil.
Total Current Liabilities was $160.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 14.497 + 9.545 + 8.266 + 6.514 = $38.8 Mil.
Non Operating Income was 0.221 + 0.814 + 0.855 + 0.875 = $2.8 Mil.
Cash Flow from Operations was 11.918 + 1.104 + -0.871 + 13.642 = $25.8 Mil.
Accounts Receivable was $102.8 Mil.
Revenue was 248.127 + 247.833 + 188.719 + 227.041 = $911.7 Mil.
Gross Profit was 55.442 + 58.567 + 40.619 + 49.443 = $204.1 Mil.
Total Current Assets was $511.1 Mil.
Total Assets was $738.1 Mil.
Property, Plant and Equipment(Net PPE) was $185.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.4 Mil.
Selling, General & Admin. Expense(SGA) was $132.2 Mil.
Total Current Liabilities was $139.6 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)
=(119.694 / 952.968) / (102.795 / 911.72)
=0.12560128 / 0.11274843
=1.114

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)
=(56.757 / 911.72) / (62.178 / 952.968)
=0.22383078 / 0.22251114
=1.0059

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 - (536.373 + 193.552) / 803.139) / (1 - (511.145 + 185.033) / 738.132)
=0.09115981 / 0.05683807
=1.6039

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
=952.968 / 911.72
=1.0452

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))
=(22.361 / (22.361 + 185.033)) / (22.97 / (22.97 + 193.552))
=0.10781893 / 0.10608622
=1.0163

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)
=(138.846 / 952.968) / (132.222 / 911.72)
=0.14569849 / 0.14502479
=1.0046

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 + 160.032) / 803.139) / ((0 + 139.579) / 738.132)
=0.19925816 / 0.18909761
=1.0537

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
=(38.822 - 2.765 - 25.793) / 803.139
=0.0128

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 0.83210.96561.08261.0730.76681.19541.13621.01860.89061.0682
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 -2.52-2.47-2.36-1.88-2.26-2.87-2.68-2.14-2.53-2.19

Astec Industries Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.92320.97980.94390.89060.99570.93811.00241.06821.03561.114
GMI 1.0251.09261.06861.03581.01440.98010.98420.99561.00471.0059
AQI 1.16111.18891.0080.95630.9030.97540.97910.97860.98421.6039
SGI 1.22781.17921.14420.97960.92470.91330.88830.99651.00691.0452
DEPI 1.02750.95240.91320.830.8950.93790.98481.03971.01661.0163
SGAI 0.95140.93980.94581.00221.03211.01360.99710.98151.00481.0046
LVGI 0.95791.01781.0280.92741.04190.9060.93260.89440.92471.0537
TATA 0.01290.01740.00560.0135-0.00230.0095-0.00240.04120.03470.0128
M-score -2.18-2.13-2.35-2.53-2.62-2.57-2.58-2.20-2.26-2.04
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