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Benchmark Electronics (NYSE:BHE)
Beneish M-Score
-2.45 (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 has a M-score of -2.45 suggests that the company is not a manipulator.

BHE' s 10-Year Beneish M-Score Range
Min: -49.12   Max: 27.79
Current: -2.45

-49.12
27.79

During the past 13 years, the highest Beneish M-Score of Benchmark Electronics was 27.79. The lowest was -49.12. And the median was -2.32.


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 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 * 1.0085+0.528 * 0.9284+0.404 * 1.0393+0.892 * 1.077+0.115 * 0.9618
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0859+4.679 * 0.0048-0.327 * 1.0855
=-2.45

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $468 Mil.
Revenue was 639.344 + 756.843 + 599.658 + 607.522 = $2,603 Mil.
Gross Profit was 51.123 + 59.843 + 45.44 + 44.367 = $201 Mil.
Total Current Assets was $1,343 Mil.
Total Assets was $1,658 Mil.
Property, Plant and Equipment(Net PPE) was $188 Mil.
Depreciation, Depletion and Amortization(DDA) was $37 Mil.
Selling, General & Admin. Expense(SGA) was $105 Mil.
Total Current Liabilities was $376 Mil.
Long-Term Debt was $9 Mil.
Net Income was 19.125 + 67.489 + 23.726 + 8.457 = $119 Mil.
Non Operating Income was 0.026 + -0.661 + 0.745 + -0.501 = $-0 Mil.
Cash Flow from Operations was 60.734 + -0.854 + 38.713 + 12.57 = $111 Mil.
Accounts Receivable was $431 Mil.
Revenue was 542.444 + 633.933 + 610.769 + 630.031 = $2,417 Mil.
Gross Profit was 36.834 + 45.459 + 44.78 + 45.991 = $173 Mil.
Total Current Assets was $1,200 Mil.
Total Assets was $1,483 Mil.
Property, Plant and Equipment(Net PPE) was $173 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $90 Mil.
Total Current Liabilities was $308 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)
=(467.802 / 2603.367) / (430.667 / 2417.177)
=0.17969115 / 0.17816941
=1.0085

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)
=(59.843 / 2417.177) / (51.123 / 2603.367)
=0.07159757 / 0.07712051
=0.9284

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 - (1342.618 + 187.689) / 1657.891) / (1 - (1199.634 + 173.351) / 1482.777)
=0.0769556 / 0.07404485
=1.0393

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
=2603.367 / 2417.177
=1.077

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))
=(32.928 / (32.928 + 173.351)) / (37.351 / (37.351 + 187.689))
=0.15962846 / 0.16597494
=0.9618

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)
=(105.085 / 2603.367) / (89.849 / 2417.177)
=0.04036503 / 0.03717105
=1.0859

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)
=((9.366 + 376.181) / 1657.891) / ((9.971 + 307.699) / 1482.777)
=0.23255268 / 0.2142399
=1.0855

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
=(118.797 - -0.391 - 111.163) / 1657.891
=0.0048

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 has a M-score of -2.45 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 Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.10641.28980.98321.04650.97781.2360.94741.00630.98571.1868
GMI 1.06311.07321.04511.00631.00220.96820.89921.26610.86050.9625
AQI 0.93320.84740.96072.00610.56140.96250.92481.01560.82071.0529
SGI 1.08781.12791.2881.0030.88830.80661.14980.93791.09551.0155
DEPI 0.9321.25481.09870.85980.99250.96781.00671.33641.16630.9354
SGAI 0.86460.90430.87341.34861.0941.15020.93841.03640.91581.0874
LVGI 0.86171.11110.86350.84151.00520.97150.93931.07460.93861.0849
TATA 0.03680.06410.1376-0.108-0.21-0.04640.0516-0.0015-0.06310.0074
M-score -2.06-1.81-1.51-2.55-3.78-2.70-2.21-2.38-2.80-2.31

Benchmark Electronics Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.00631.18531.01970.95270.98570.84450.99840.93611.18681.0085
GMI 1.26681.23641.13651.02240.86050.85760.89030.92650.96250.9284
AQI 1.01561.00590.96830.89070.82070.83220.83670.81891.05291.0393
SGI 0.93790.97450.99491.03121.09551.04721.01790.99591.01551.077
DEPI 1.33641.16951.12211.09421.16631.09391.06841.01430.93540.9618
SGAI 1.03641.01220.9870.95310.91580.94990.98661.03611.08741.0859
LVGI 1.07461.16051.09231.00380.93860.86731.01321.03681.08491.0855
TATA -0.00150.0171-0.0119-0.0554-0.0631-0.1087-0.0893-0.07650.00740.0048
M-score -2.38-2.16-2.48-2.77-2.80-3.17-3.00-3.03-2.31-2.45
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