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Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

BHE' s 10-Year Beneish M-Score Range
Min: -49.12   Max: 27.79
Current: -2.63

-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 * 0.9977+0.528 * 0.985+0.404 * 0.7753+0.892 * 1.0048+0.115 * 0.8129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0357+4.679 * -0.0086-0.327 * 0.9522
=-2.63

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $501 Mil.
Revenue was 664.038 + 620.925 + 709.547 + 731.302 = $2,726 Mil.
Gross Profit was 55.716 + 51.779 + 55.689 + 55.294 = $218 Mil.
Total Current Assets was $1,400 Mil.
Total Assets was $1,683 Mil.
Property, Plant and Equipment(Net PPE) was $186 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General & Admin. Expense(SGA) was $115 Mil.
Total Current Liabilities was $360 Mil.
Long-Term Debt was $8 Mil.
Net Income was 21.21 + 14.205 + 24.011 + 17.156 = $77 Mil.
Non Operating Income was 0.596 + -1.057 + 0.528 + -1.105 = $-1 Mil.
Cash Flow from Operations was 52.018 + -10.905 + 22.756 + 28.211 = $92 Mil.
Accounts Receivable was $499 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.



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)
=(500.713 / 2725.812) / (499.479 / 2712.713)
=0.18369315 / 0.18412527
=0.9977

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)
=(51.779 / 2712.713) / (55.716 / 2725.812)
=0.07894569 / 0.08015153
=0.985

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 - (1399.556 + 185.535) / 1682.501) / (1 - (1365.231 + 190.686) / 1681.477)
=0.05789595 / 0.07467245
=0.7753

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
=2725.812 / 2712.713
=1.0048

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))
=(38.803 / (38.803 + 190.686)) / (48.73 / (48.73 + 185.535))
=0.16908436 / 0.20801229
=0.8129

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)
=(114.969 / 2725.812) / (110.474 / 2712.713)
=0.04217789 / 0.04072454
=1.0357

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)
=((8.47 + 360.112) / 1682.501) / ((9.194 + 377.674) / 1681.477)
=0.21906792 / 0.2300763
=0.9522

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
=(76.582 - -1.038 - 92.08) / 1682.501
=-0.0086

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 -2.63 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 1.07321.04511.00631.00220.96820.89321.27470.86050.96250.9465
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 1.25481.09870.85980.99250.96781.00671.33641.05681.03220.8321
SGAI 0.90430.87341.34861.0941.15020.93841.07520.88271.08741.0438
LVGI 1.11110.86350.84151.00520.97150.93931.07460.93861.08490.8905
TATA 0.06410.1376-0.108-0.21-0.04640.0525-0.0015-0.06310.0074-0.032
M-score -1.81-1.51-2.55-3.78-2.71-2.20-2.39-2.80-2.28-2.79

Benchmark Electronics Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.84030.99640.9341.20071.03130.94931.05650.83310.98870.9977
GMI 0.85760.89030.92650.96250.92840.90690.91680.94650.97180.985
AQI 0.83220.83670.81891.05291.03931.08051.00380.76520.79650.7753
SGI 1.04721.01790.99591.01551.0771.13281.19331.11591.06731.0048
DEPI 0.99530.97490.92841.03221.0571.05681.0430.83210.81560.8129
SGAI 0.91580.95110.99861.08741.08591.0791.06251.04381.0321.0357
LVGI 0.86731.01321.03681.08491.08550.95671.03810.89050.84790.9522
TATA -0.1087-0.0893-0.07650.00740.00480.00520.0084-0.0320.0086-0.0086
M-score -3.18-3.01-3.03-2.28-2.42-2.39-2.28-2.79-2.46-2.63
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