Switch to:
Benchmark Electronics Inc (NYSE:BHE)
Beneish M-Score
-2.46 (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 -2.46 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: -2.46

-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 * 0.9499+0.528 * 0.9026+0.404 * 2.8509+0.892 * 0.8886+0.115 * 0.8917
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1161+4.679 * -0.0762-0.327 * 1.423
=-2.46

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $414 Mil.
Revenue was 549.225 + 625.719 + 630.191 + 664.038 = $2,469 Mil.
Gross Profit was 50.31 + 56.795 + 54.284 + 55.716 = $217 Mil.
Total Current Assets was $1,360 Mil.
Total Assets was $1,859 Mil.
Property, Plant and Equipment(Net PPE) was $174 Mil.
Depreciation, Depletion and Amortization(DDA) was $51 Mil.
Selling, General & Admin. Expense(SGA) was $115 Mil.
Total Current Liabilities was $302 Mil.
Long-Term Debt was $220 Mil.
Net Income was 11.052 + 39.421 + 20.565 + 21.21 = $92 Mil.
Non Operating Income was -0.223 + 0.441 + -1.121 + 0.596 = $-0 Mil.
Cash Flow from Operations was 76.513 + 28.082 + 77.609 + 52.018 = $234 Mil.
Accounts Receivable was $491 Mil.
Revenue was 620.925 + 709.547 + 731.302 + 716.868 = $2,779 Mil.
Gross Profit was 51.779 + 55.689 + 55.294 + 57.751 = $221 Mil.
Total Current Assets was $1,342 Mil.
Total Assets was $1,629 Mil.
Property, Plant and Equipment(Net PPE) was $187 Mil.
Depreciation, Depletion and Amortization(DDA) was $48 Mil.
Selling, General & Admin. Expense(SGA) was $116 Mil.
Total Current Liabilities was $313 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)
=(414.184 / 2469.173) / (490.686 / 2778.642)
=0.16774199 / 0.17659202
=0.9499

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)
=(220.513 / 2778.642) / (217.105 / 2469.173)
=0.07935999 / 0.0879262
=0.9026

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 - (1360.364 + 173.969) / 1859.214) / (1 - (1342.488 + 187.049) / 1629.407)
=0.17474105 / 0.06129224
=2.8509

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
=2469.173 / 2778.642
=0.8886

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))
=(47.789 / (47.789 + 187.049)) / (51.441 / (51.441 + 173.969))
=0.20349773 / 0.22821082
=0.8917

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)
=(114.795 / 2469.173) / (115.749 / 2778.642)
=0.04649127 / 0.04165668
=1.1161

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)
=((219.998 + 301.67) / 1859.214) / ((8.665 + 312.628) / 1629.407)
=0.28058524 / 0.19718401
=1.423

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
=(92.248 - -0.307 - 234.222) / 1859.214
=-0.0762

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 -2.46 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.98321.04650.97781.22570.95030.9960.98391.20070.83311.0136
GMI 1.04321.00591.00440.96820.89321.27470.86050.96250.94650.9137
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 1.09870.85980.99250.96781.00671.33641.05681.03220.83210.9004
SGAI 0.86331.35151.08311.17290.93841.07520.88271.08741.04381.0632
LVGI 0.86350.84151.00520.97150.93931.07460.93861.08490.89231.3368
TATA 0.1382-0.1075-0.21-0.04640.0525-0.0015-0.06310.0074-0.0321-0.0265
M-score -1.51-2.55-3.77-2.72-2.20-2.39-2.80-2.28-2.77-2.16

Benchmark Electronics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.20071.03130.94931.05650.83310.98870.99770.94821.01360.9499
GMI 0.96250.92840.90690.91680.94650.97180.9850.95050.91370.9026
AQI 1.05291.03931.08051.00380.81570.79650.77530.85962.71552.8509
SGI 1.01551.0771.13281.19331.11591.06731.00480.92280.90840.8886
DEPI 0.93180.95730.96080.95260.92180.90060.89410.90430.90040.8917
SGAI 1.08741.08591.0791.06251.04381.0321.03571.02451.06321.1161
LVGI 1.08491.08550.95671.03810.89230.84790.95220.84561.33681.423
TATA 0.00750.0050.00530.0088-0.03140.0094-0.0079-0.0358-0.0265-0.0762
M-score -2.30-2.43-2.40-2.29-2.76-2.45-2.62-2.81-2.16-2.46
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK