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Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

BHE' s Beneish M-Score Range Over the Past 10 Years
Min: -49.12   Max: 27.79
Current: -2.52

-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 -2.40.


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 * 1.0067+0.528 * 0.9111+0.404 * 2.8096+0.892 * 0.8872+0.115 * 0.8634
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2478+4.679 * -0.0873-0.327 * 1.4985
=-2.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $417 Mil.
Revenue was 574.341 + 579.342 + 549.225 + 625.719 = $2,329 Mil.
Gross Profit was 52.822 + 52.684 + 50.31 + 56.229 = $212 Mil.
Total Current Assets was $1,481 Mil.
Total Assets was $1,959 Mil.
Property, Plant and Equipment(Net PPE) was $169 Mil.
Depreciation, Depletion and Amortization(DDA) was $55 Mil.
Selling, General & Admin. Expense(SGA) was $122 Mil.
Total Current Liabilities was $401 Mil.
Long-Term Debt was $214 Mil.
Net Income was 21.742 + 12.685 + 11.052 + 39.421 = $85 Mil.
Non Operating Income was -0.383 + 0.071 + -0.223 + 0.441 = $-0 Mil.
Cash Flow from Operations was 70.432 + 81.085 + 76.513 + 28.082 = $256 Mil.
Accounts Receivable was $467 Mil.
Revenue was 630.191 + 664.038 + 620.925 + 709.547 = $2,625 Mil.
Gross Profit was 54.564 + 55.716 + 51.779 + 55.689 = $218 Mil.
Total Current Assets was $1,392 Mil.
Total Assets was $1,667 Mil.
Property, Plant and Equipment(Net PPE) was $181 Mil.
Depreciation, Depletion and Amortization(DDA) was $49 Mil.
Selling, General & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $341 Mil.
Long-Term Debt was $8 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)
=(417.325 / 2328.627) / (467.241 / 2624.701)
=0.17921505 / 0.17801685
=1.0067

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)
=(217.748 / 2624.701) / (212.045 / 2328.627)
=0.08296107 / 0.0910601
=0.9111

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 - (1480.711 + 168.806) / 1959.068) / (1 - (1392.161 + 181.187) / 1667.104)
=0.15800932 / 0.05623884
=2.8096

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
=2328.627 / 2624.701
=0.8872

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))
=(48.954 / (48.954 + 181.187)) / (55.184 / (55.184 + 168.806))
=0.21271308 / 0.24636814
=0.8634

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)
=(121.735 / 2328.627) / (109.966 / 2624.701)
=0.05227759 / 0.04189658
=1.2478

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)
=((214.171 + 401.132) / 1959.068) / ((8.27 + 341.159) / 1667.104)
=0.31407945 / 0.2096024
=1.4985

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
=(84.9 - -0.094 - 256.112) / 1959.068
=-0.0873

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 -2.52 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 local exchange's currency.

Benchmark Electronics Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.98321.04650.97781.22570.95030.9960.98391.20070.83311.0136
GMI 1.04511.00631.00220.96820.89921.26610.86050.96250.94650.9137
AQI 0.96072.00610.56140.96250.92481.01560.82071.05290.81572.7155
SGI 1.2881.0030.88830.80661.14980.93791.09551.01551.11590.9084
DEPI 1.09870.85980.99250.96781.00671.5590.90590.93180.92180.9004
SGAI 0.87341.34861.0941.15020.93841.03640.91581.08741.04381.0632
LVGI 0.86350.84151.00520.97150.93931.07460.93861.08490.89231.3368
TATA 0.1376-0.108-0.21-0.04640.0516-0.0015-0.06310.0075-0.0314-0.0265
M-score -1.51-2.55-3.78-2.71-2.20-2.37-2.83-2.30-2.76-2.16

Benchmark Electronics Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.94931.05650.83310.98870.99770.94821.01360.94990.96331.0067
GMI 0.90690.91680.94650.97180.9850.94930.91490.90380.8940.9111
AQI 1.08051.00380.81570.79650.77530.85962.71552.85092.9222.8096
SGI 1.13281.19331.11591.06731.00480.92280.90840.88860.87480.8872
DEPI 0.96080.95260.92180.90060.89410.90430.90040.89170.87640.8634
SGAI 1.0791.06251.04381.0321.03571.01691.07891.13211.19181.2478
LVGI 0.95671.03810.89230.84790.95220.84561.33681.4231.35591.4985
TATA 0.00530.0088-0.03140.0094-0.0079-0.0358-0.0265-0.0762-0.0941-0.0873
M-score -2.40-2.29-2.76-2.45-2.62-2.81-2.16-2.46-2.51-2.52
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