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Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.09 (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.

Benchmark Electronics Inc has a M-score of -2.09 signals that the company is a manipulator.

BHE' s Beneish M-Score Range Over the Past 10 Years
Min: -49.12   Max: 27.79
Current: -2.09

-49.12
27.79

During the past 13 years, the highest Beneish M-Score of Benchmark Electronics Inc was 27.79. The lowest was -49.12. And the median was -2.39.


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 Benchmark Electronics 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 * 1.0136+0.528 * 0.9137+0.404 * 2.895+0.892 * 0.9084+0.115 * 0.9004
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0632+4.679 * -0.0265-0.327 * 1.3396
=-2.09

* 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 $479 Mil.
Revenue was 625.719 + 630.191 + 664.038 + 620.925 = $2,541 Mil.
Gross Profit was 56.795 + 54.284 + 55.716 + 51.779 = $219 Mil.
Total Current Assets was $1,389 Mil.
Total Assets was $1,894 Mil.
Property, Plant and Equipment(Net PPE) was $178 Mil.
Depreciation, Depletion and Amortization(DDA) was $50 Mil.
Selling, General & Admin. Expense(SGA) was $112 Mil.
Total Current Liabilities was $333 Mil.
Long-Term Debt was $223 Mil.
Net Income was 39.421 + 20.565 + 21.21 + 14.205 = $95 Mil.
Non Operating Income was 0.441 + -1.121 + 0.596 + -1.057 = $-1 Mil.
Cash Flow from Operations was 28.082 + 77.609 + 52.018 + -10.905 = $147 Mil.
Accounts Receivable was $520 Mil.
Revenue was 709.547 + 731.302 + 716.868 + 639.344 = $2,797 Mil.
Gross Profit was 55.689 + 55.294 + 57.751 + 51.123 = $220 Mil.
Total Current Assets was $1,389 Mil.
Total Assets was $1,679 Mil.
Property, Plant and Equipment(Net PPE) was $190 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $116 Mil.
Total Current Liabilities was $359 Mil.
Long-Term Debt was $9 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)
=(479.14 / 2540.873) / (520.389 / 2797.061)
=0.18857298 / 0.1860485
=1.0136

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)
=(54.284 / 2797.061) / (56.795 / 2540.873)
=0.07860286 / 0.08602319
=0.9137

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 - (1388.628 + 178.17) / 1893.878) / (1 - (1388.553 + 190.18) / 1678.889)
=0.17270384 / 0.05965612
=2.895

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
=2540.873 / 2797.061
=0.9084

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))
=(46.449 / (46.449 + 190.18)) / (49.672 / (49.672 + 178.17))
=0.19629462 / 0.21801073
=0.9004

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)
=(111.744 / 2540.873) / (115.7 / 2797.061)
=0.04397859 / 0.04136485
=1.0632

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)
=((222.909 + 333.094) / 1893.878) / ((8.845 + 359.098) / 1678.889)
=0.2935791 / 0.21915862
=1.3396

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
=(95.401 - -1.141 - 146.804) / 1893.878
=-0.0265

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.

Benchmark Electronics Inc has a M-score of -2.09 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.

Benchmark Electronics Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.98321.04650.97781.22570.95030.9960.98391.20070.83311.0136
GMI 1.04511.00631.00220.96820.89321.27470.86050.96250.94650.9137
AQI 0.96072.00610.56140.96250.92481.01560.82071.05290.76522.895
SGI 1.2881.0030.88830.80661.14980.93791.09551.01551.11590.9084
DEPI 1.09870.85980.99250.96781.00671.33641.05681.03220.83210.9004
SGAI 0.87341.34861.0941.15020.93841.07520.88271.08741.04381.0632
LVGI 0.86350.84151.00520.97150.93931.07460.93861.08490.89051.3396
TATA 0.1376-0.108-0.21-0.04640.0525-0.0015-0.06310.0074-0.032-0.0265
M-score -1.51-2.55-3.78-2.71-2.20-2.39-2.80-2.28-2.79-2.09

Benchmark Electronics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.20071.03130.94931.05650.83310.98870.99770.94821.01360.9499
GMI 0.96250.92840.90690.91680.94650.97180.9850.95050.91370.9026
AQI 1.05291.03931.08051.00380.76520.79650.77530.85962.8952.8409
SGI 1.01551.0771.13281.19331.11591.06731.00480.92280.90840.8886
DEPI 1.03221.0571.05681.0430.83210.81560.81290.82590.90041.1467
SGAI 1.08741.08591.0791.06251.04381.0321.03571.02451.06321.1161
LVGI 1.08491.08550.95671.03810.89050.84790.95220.84561.33961.424
TATA 0.00740.00480.00520.0084-0.0320.0086-0.0086-0.0363-0.0265-0.0351
M-score -2.28-2.42-2.39-2.28-2.79-2.46-2.63-2.82-2.09-2.24
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