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Exterran Holdings Inc (NYSE:EXH)
Beneish M-Score
-2.56 (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.

Exterran Holdings Inc has a M-score of -2.56 suggests that the company is not a manipulator.

EXH' s 10-Year Beneish M-Score Range
Min: -4.01   Max: -1.4
Current: -2.56

-4.01
-1.4

During the past 13 years, the highest Beneish M-Score of Exterran Holdings Inc was -1.40. The lowest was -4.01. And the median was -2.72.


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 Exterran Holdings 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 * 1.2756+0.528 * 0.8568+0.404 * 1.2396+0.892 * 0.9175+0.115 * 1.0006
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1495+4.679 * -0.0494-0.327 * 1.0712
=-2.56

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $558 Mil.
Revenue was 793.628 + 723.832 + 739.27 + 643.008 = $2,900 Mil.
Gross Profit was 275.349 + 266.485 + 255.974 + 233.486 = $1,031 Mil.
Total Current Assets was $1,266 Mil.
Total Assets was $4,857 Mil.
Property, Plant and Equipment(Net PPE) was $3,327 Mil.
Depreciation, Depletion and Amortization(DDA) was $386 Mil.
Selling, General & Admin. Expense(SGA) was $378 Mil.
Total Current Liabilities was $611 Mil.
Long-Term Debt was $2,027 Mil.
Net Income was 19.143 + 34.05 + 12.377 + 32.596 = $98 Mil.
Non Operating Income was -57.421 + 0.288 + 8.58 + 7.127 = $-41 Mil.
Cash Flow from Operations was 99.247 + 157.519 + 68.711 + 53.892 = $379 Mil.
Accounts Receivable was $477 Mil.
Revenue was 739.018 + 775.584 + 835.906 + 809.896 = $3,160 Mil.
Gross Profit was 237.464 + 244.931 + 255.869 + 224.742 = $963 Mil.
Total Current Assets was $1,221 Mil.
Total Assets was $4,227 Mil.
Property, Plant and Equipment(Net PPE) was $2,820 Mil.
Depreciation, Depletion and Amortization(DDA) was $328 Mil.
Selling, General & Admin. Expense(SGA) was $358 Mil.
Total Current Liabilities was $641 Mil.
Long-Term Debt was $1,502 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)
=(558.042 / 2899.738) / (476.792 / 3160.404)
=0.19244566 / 0.15086426
=1.2756

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)
=(266.485 / 3160.404) / (275.349 / 2899.738)
=0.30470978 / 0.35565075
=0.8568

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 - (1265.676 + 3326.892) / 4857.147) / (1 - (1221.131 + 2820.272) / 4227.157)
=0.0544721 / 0.04394301
=1.2396

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
=2899.738 / 3160.404
=0.9175

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))
=(327.505 / (327.505 + 2820.272)) / (386.071 / (386.071 + 3326.892))
=0.10404327 / 0.10397922
=1.0006

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)
=(377.754 / 2899.738) / (358.173 / 3160.404)
=0.13027177 / 0.1133314
=1.1495

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)
=((2026.902 + 610.718) / 4857.147) / ((1502.155 + 640.706) / 4227.157)
=0.54303895 / 0.50692723
=1.0712

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
=(98.166 - -41.426 - 379.369) / 4857.147
=-0.0494

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.

Exterran Holdings Inc has a M-score of -2.56 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.

Exterran Holdings Inc Annual Data

Mar05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.31871.6180.8241.25480.64651.07710.96190.94450.93561.2756
GMI 1.03371.18481.06020.95431.0061.02241.19050.93310.97410.8568
AQI 1.00010.50392.53770.58430.56211.16110.67270.60451.04951.2396
SGI 1.10782.0881.59451.19040.8980.89011.0881.06251.1310.9175
DEPI 0.97821.10560.87170.81880.93540.83441.03770.99771.04471.0006
SGAI 1.01281.24720.84261.11851.06541.17130.92121.00220.8431.1495
LVGI 0.96061.27470.73181.23081.03980.95681.00040.98150.9221.0712
TATA -0.037-0.0619-0.019-0.2397-0.1869-0.0707-0.0577-0.1129-0.0585-0.0494
M-score -2.24-1.45-1.45-3.51-3.98-2.80-2.72-3.19-2.63-2.56

Exterran Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.08520.94860.9940.74770.69440.93560.94721.21661.32331.2756
GMI 0.98110.93090.96270.99280.99450.97410.89090.86410.84590.8568
AQI 0.82230.60450.79520.7240.87041.04951.13341.19981.31831.2396
SGI 1.05151.05791.13291.21691.2251.1311.00150.9070.87520.9175
DEPI 0.99150.99770.9741.04491.04041.04471.02781.03491.01691.0006
SGAI 0.95531.00130.90110.82330.84470.8430.9991.1271.14641.1495
LVGI 1.02050.98151.02420.93920.94990.9220.92010.95611.01141.0712
TATA -0.0317-0.1129-0.0896-0.0658-0.0974-0.0585-0.0675-0.0629-0.0623-0.0494
M-score -2.59-3.19-2.88-2.89-3.02-2.63-2.82-2.65-2.57-2.56
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