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Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.41 (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 -2.41 suggests that the company is not a manipulator.

BHE' s 10-Year Beneish M-Score Range
Min: -49.12   Max: 27.79
Current: -2.41

-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 -2.33.


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 * 0.9331+0.528 * 0.9069+0.404 * 1.0805+0.892 * 1.1328+0.115 * 1.0568
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.079+4.679 * 0.0052-0.327 * 0.9567
=-2.41

* 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 $502 Mil.
Revenue was 716.868 + 639.344 + 756.843 + 599.658 = $2,713 Mil.
Gross Profit was 57.751 + 51.123 + 59.843 + 45.44 = $214 Mil.
Total Current Assets was $1,365 Mil.
Total Assets was $1,681 Mil.
Property, Plant and Equipment(Net PPE) was $191 Mil.
Depreciation, Depletion and Amortization(DDA) was $39 Mil.
Selling, General & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $378 Mil.
Long-Term Debt was $9 Mil.
Net Income was 22.15 + 19.125 + 67.489 + 23.726 = $132 Mil.
Non Operating Income was 0.099 + 0.026 + -0.661 + 0.745 = $0 Mil.
Cash Flow from Operations was 24.96 + 60.734 + -0.854 + 38.713 = $124 Mil.
Accounts Receivable was $475 Mil.
Revenue was 607.522 + 542.444 + 633.933 + 610.769 = $2,395 Mil.
Gross Profit was 44.367 + 36.834 + 45.459 + 44.78 = $171 Mil.
Total Current Assets was $1,259 Mil.
Total Assets was $1,539 Mil.
Property, Plant and Equipment(Net PPE) was $174 Mil.
Depreciation, Depletion and Amortization(DDA) was $38 Mil.
Selling, General & Admin. Expense(SGA) was $90 Mil.
Total Current Liabilities was $360 Mil.
Long-Term Debt was $10 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)
=(502.11 / 2712.713) / (475.008 / 2394.668)
=0.18509514 / 0.19836069
=0.9331

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)
=(51.123 / 2394.668) / (57.751 / 2712.713)
=0.07159239 / 0.07894569
=0.9069

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 - (1365.231 + 190.686) / 1681.477) / (1 - (1258.521 + 173.954) / 1538.818)
=0.07467245 / 0.06910694
=1.0805

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
=2712.713 / 2394.668
=1.1328

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))
=(37.845 / (37.845 + 173.954)) / (38.803 / (38.803 + 190.686))
=0.17868356 / 0.16908436
=1.0568

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)
=(110.474 / 2712.713) / (90.381 / 2394.668)
=0.04072454 / 0.0377426
=1.079

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)
=((9.194 + 377.674) / 1681.477) / ((9.822 + 360.237) / 1538.818)
=0.2300763 / 0.24048263
=0.9567

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
=(132.49 - 0.209 - 123.553) / 1681.477
=0.0052

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 -2.41 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.

Benchmark Electronics Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.10641.28980.98321.04650.97781.2360.94741.00630.98571.1868
GMI 1.06311.07321.04321.00591.00440.96820.89321.27470.86050.9625
AQI 0.93320.84740.96072.00610.54870.98480.92481.01560.82071.0529
SGI 1.08781.12791.2881.0030.88830.80661.14980.93791.09551.0155
DEPI 0.9321.25481.09870.85980.99250.96781.00671.33641.05681.0322
SGAI 0.86460.90430.86331.35151.08311.17290.93841.07520.88271.0874
LVGI 0.86171.11110.86350.84330.9990.97550.93931.07460.93861.0849
TATA 0.03680.06410.1382-0.1075-0.0372-0.04640.0525-0.0015-0.06310.0074
M-score -2.06-1.81-1.51-2.55-2.97-2.70-2.20-2.38-2.80-2.30

Benchmark Electronics Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.18531.01970.95270.98570.84450.99840.93611.18681.00850.9331
GMI 1.25011.14551.02780.86570.85760.89030.92650.96250.92840.9069
AQI 1.00590.96830.89070.82070.83220.83670.81891.05291.03931.0805
SGI 0.97450.99491.03121.09551.04721.01790.99591.01551.0771.1328
DEPI 1.16951.12211.09421.05680.99530.97490.92841.03221.0571.0568
SGAI 1.04991.02390.98890.88270.91580.95110.99861.08741.08591.079
LVGI 1.16051.09231.00380.93860.86731.01321.03681.08491.08550.9567
TATA 0.0171-0.0119-0.0554-0.0631-0.1087-0.0893-0.07650.00740.00480.0052
M-score -2.16-2.48-2.77-2.80-3.18-3.01-3.03-2.30-2.44-2.41
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