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Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.29 (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 -2.29 suggests that the company is not a manipulator.

BHE' s 10-Year Beneish M-Score Range
Min: -49.12   Max: 27.79
Current: -2.29

-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 -2.32.


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 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 * 1.0565+0.528 * 0.9168+0.404 * 1.0038+0.892 * 1.1933+0.115 * 0.9547
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0625+4.679 * 0.0084-0.327 * 1.0381
=-2.29

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $534 Mil.
Revenue was 731.302 + 716.868 + 639.344 + 756.843 = $2,844 Mil.
Gross Profit was 55.294 + 57.751 + 51.123 + 59.843 = $224 Mil.
Total Current Assets was $1,425 Mil.
Total Assets was $1,728 Mil.
Property, Plant and Equipment(Net PPE) was $190 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $117 Mil.
Total Current Liabilities was $419 Mil.
Long-Term Debt was $9 Mil.
Net Income was 17.156 + 22.15 + 19.125 + 67.489 = $126 Mil.
Non Operating Income was -1.105 + 0.099 + 0.026 + -0.661 = $-2 Mil.
Cash Flow from Operations was 28.211 + 24.96 + 60.734 + -0.854 = $113 Mil.
Accounts Receivable was $424 Mil.
Revenue was 599.658 + 607.522 + 542.444 + 633.933 = $2,384 Mil.
Gross Profit was 45.44 + 44.367 + 36.834 + 45.459 = $172 Mil.
Total Current Assets was $1,288 Mil.
Total Assets was $1,564 Mil.
Property, Plant and Equipment(Net PPE) was $173 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General & Admin. Expense(SGA) was $92 Mil.
Total Current Liabilities was $364 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)
=(534.002 / 2844.357) / (423.564 / 2383.557)
=0.18774085 / 0.17770248
=1.0565

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)
=(57.751 / 2383.557) / (55.294 / 2844.357)
=0.07220301 / 0.07875629
=0.9168

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 - (1424.786 + 190.158) / 1727.991) / (1 - (1288.326 + 173.336) / 1563.568)
=0.06542106 / 0.06517529
=1.0038

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
=2844.357 / 2383.557
=1.1933

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))
=(34.933 / (34.933 + 173.336)) / (40.529 / (40.529 + 190.158))
=0.1677302 / 0.17568827
=0.9547

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)
=(117.192 / 2844.357) / (92.429 / 2383.557)
=0.04120158 / 0.03877776
=1.0625

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)
=((9.021 + 419.319) / 1727.991) / ((9.672 + 363.674) / 1563.568)
=0.24788324 / 0.23877823
=1.0381

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
=(125.92 - -1.641 - 113.051) / 1727.991
=0.0084

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 -2.29 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 1.10641.28980.98321.04650.97781.22570.95030.9960.98391.2007
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 -2.06-1.81-1.51-2.55-3.78-2.71-2.20-2.39-2.80-2.30

Benchmark Electronics Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.01610.95460.98390.84030.99640.9341.20071.03130.94931.0565
GMI 1.13651.02240.86050.85760.89030.92650.96250.92840.90690.9168
AQI 0.96830.89070.82070.83220.83670.81891.05291.03931.08051.0038
SGI 0.99491.03121.09551.04721.01790.99591.01551.0771.13281.1933
DEPI 1.12211.09421.16631.09391.06841.01430.93540.96180.96430.9547
SGAI 0.9870.95310.91580.94990.98661.03611.08741.08591.0791.0625
LVGI 1.09231.00380.93860.86731.01321.03681.08491.08550.95671.0381
TATA -0.0119-0.0554-0.0631-0.1087-0.0893-0.07650.00740.00480.00520.0084
M-score -2.48-2.77-2.80-3.17-3.00-3.03-2.30-2.43-2.40-2.29
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