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Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

BHE' s 10-Year Beneish M-Score Range
Min: -49.12   Max: -1.33
Current: -2.78

-49.12
-1.33

During the past 13 years, the highest Beneish M-Score of Benchmark Electronics Inc was -1.33. The lowest was -49.12. And the median was -2.51.


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 * 0.8331+0.528 * 0.9465+0.404 * 0.7652+0.892 * 1.1159+0.115 * 0.9218
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0438+4.679 * -0.032-0.327 * 0.8905
=-2.78

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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.
Net Income was 24.011 + 17.156 + 22.15 + 19.125 = $82 Mil.
Non Operating Income was 0.528 + -1.105 + 0.099 + 0.026 = $-0 Mil.
Cash Flow from Operations was 22.756 + 28.211 + 24.96 + 60.734 = $137 Mil.
Accounts Receivable was $560 Mil.
Revenue was 756.843 + 599.658 + 607.522 + 542.444 = $2,506 Mil.
Gross Profit was 59.843 + 45.44 + 44.367 + 36.834 = $186 Mil.
Total Current Assets was $1,343 Mil.
Total Assets was $1,657 Mil.
Property, Plant and Equipment(Net PPE) was $185 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $398 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)
=(520.389 / 2797.061) / (559.763 / 2506.467)
=0.1860485 / 0.2233275
=0.8331

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)
=(55.294 / 2506.467) / (55.689 / 2797.061)
=0.07440114 / 0.07860286
=0.9465

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 - (1388.553 + 190.18) / 1678.889) / (1 - (1342.833 + 185.319) / 1657.371)
=0.05965612 / 0.07796625
=0.7652

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
=2797.061 / 2506.467
=1.1159

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))
=(40.942 / (40.942 + 185.319)) / (46.449 / (46.449 + 190.18))
=0.18095032 / 0.19629462
=0.9218

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)
=(115.7 / 2797.061) / (99.331 / 2506.467)
=0.04136485 / 0.03962989
=1.0438

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)
=((8.845 + 359.098) / 1678.889) / ((9.521 + 398.377) / 1657.371)
=0.21915862 / 0.24611146
=0.8905

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
=(82.442 - -0.452 - 136.661) / 1678.889
=-0.032

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 -2.78 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.28980.98321.04650.97781.22570.95030.9960.98391.20070.8331
GMI 1.07321.04511.00631.00220.96820.89921.26610.86050.96250.9465
AQI 0.84740.96072.00610.56140.96250.92481.01560.82071.05290.7652
SGI 1.12791.2881.0030.88830.80661.14980.93791.09551.01551.1159
DEPI 1.25481.09870.85980.99250.96781.00671.33641.16630.84430.9218
SGAI 0.90430.87341.34861.0941.15020.93841.03640.91581.08741.0438
LVGI 1.11110.86350.84151.00520.97150.93931.07460.93861.08490.8905
TATA 0.06410.1376-0.108-0.21-0.04640.0516-0.0015-0.06310.0074-0.032
M-score -1.81-1.51-2.55-3.78-2.71-2.20-2.39-2.80-2.31-2.78

Benchmark Electronics Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.98390.84030.99640.9341.20071.03130.94931.05650.83310.9887
GMI 0.86050.85760.89030.92650.96250.92840.90690.91680.94650.9718
AQI 0.82070.83220.83670.81891.05291.03931.08051.00380.76520.7965
SGI 1.09551.04721.01790.99591.01551.0771.13281.19331.11591.0673
DEPI 1.16631.09391.06841.01430.84430.8710.87670.87190.92181.1448
SGAI 0.91580.94990.98661.03611.08741.08591.0791.06251.04381.032
LVGI 0.93860.86731.01321.03681.08491.08550.95671.03810.89050.8479
TATA -0.0631-0.1087-0.0893-0.07650.00740.00480.00520.0084-0.0320.0019
M-score -2.80-3.17-3.00-3.03-2.31-2.44-2.41-2.30-2.78-2.46
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