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Exterran Holdings Inc (NYSE:EXH)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

EXH' s 10-Year Beneish M-Score Range
Min: -5.08   Max: -0.46
Current: -2.74

-5.08
-0.46

During the past 13 years, the highest Beneish M-Score of Exterran Holdings Inc was -0.46. The lowest was -5.08. And the median was -2.71.


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 * 0.9828+0.528 * 0.9291+0.404 * 1.0726+0.892 * 1.0126+0.115 * 1.004
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.96+4.679 * -0.0526-0.327 * 1.0324
=-2.74

* 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 $503 Mil.
Revenue was 683.832 + 729.082 + 793.628 + 723.832 = $2,930 Mil.
Gross Profit was 246.841 + 269.012 + 275.349 + 266.485 = $1,058 Mil.
Total Current Assets was $1,195 Mil.
Total Assets was $4,782 Mil.
Property, Plant and Equipment(Net PPE) was $3,341 Mil.
Depreciation, Depletion and Amortization(DDA) was $379 Mil.
Selling, General & Admin. Expense(SGA) was $360 Mil.
Total Current Liabilities was $496 Mil.
Long-Term Debt was $2,090 Mil.
Net Income was -1.389 + 32.142 + 19.143 + 34.05 = $84 Mil.
Non Operating Income was -30.967 + -20.357 + -57.421 + 0.288 = $-108 Mil.
Cash Flow from Operations was 52.678 + 134.634 + 99.247 + 157.519 = $444 Mil.
Accounts Receivable was $505 Mil.
Revenue was 739.27 + 643.008 + 735.68 + 776.003 = $2,894 Mil.
Gross Profit was 255.974 + 233.486 + 236.286 + 244.781 = $971 Mil.
Total Current Assets was $1,264 Mil.
Total Assets was $4,663 Mil.
Property, Plant and Equipment(Net PPE) was $3,175 Mil.
Depreciation, Depletion and Amortization(DDA) was $362 Mil.
Selling, General & Admin. Expense(SGA) was $370 Mil.
Total Current Liabilities was $590 Mil.
Long-Term Debt was $1,853 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)
=(502.547 / 2930.374) / (504.989 / 2893.961)
=0.17149586 / 0.17449751
=0.9828

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)
=(269.012 / 2893.961) / (246.841 / 2930.374)
=0.33536285 / 0.36093925
=0.9291

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 - (1195.169 + 3340.635) / 4781.576) / (1 - (1264.415 + 3175.249) / 4663.117)
=0.05139979 / 0.04791924
=1.0726

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
=2930.374 / 2893.961
=1.0126

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))
=(361.586 / (361.586 + 3175.249)) / (378.726 / (378.726 + 3340.635))
=0.10223434 / 0.10182556
=1.004

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)
=(360.024 / 2930.374) / (370.367 / 2893.961)
=0.1228594 / 0.12797926
=0.96

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)
=((2089.762 + 495.962) / 4781.576) / ((1852.568 + 589.911) / 4663.117)
=0.54076815 / 0.52378677
=1.0324

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
=(83.946 - -108.457 - 444.078) / 4781.576
=-0.0526

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 -2.74 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 1.31871.6180.8241.25480.90680.75411.25110.73860.93671.2756
GMI 1.03371.18481.06020.95431.0061.03161.18820.92440.97650.8568
AQI 1.00010.50392.53770.58430.56211.16110.51730.77151.06931.2396
SGI 1.10782.0881.59451.19040.8980.90641.09021.04481.12730.9175
DEPI 0.97821.10560.87170.81880.93540.81721.05840.98791.05611.0006
SGAI 1.01281.24720.84261.11851.06541.17060.92021.00240.84421.1495
LVGI 0.96061.27470.73181.23081.03980.95681.00040.98150.9221.0712
TATA -0.037-0.0619-0.019-0.2397-0.1869-0.1011-0.1068-0.0682-0.0653-0.0494
M-score -2.24-1.45-1.45-3.51-3.74-3.22-2.74-3.13-2.66-2.56

Exterran Holdings Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.01050.75610.69820.94050.95111.22251.331.27561.16850.9828
GMI 0.95310.98340.98730.97380.89320.86680.84780.85680.90850.9291
AQI 0.79520.7240.87041.06931.13341.19981.31831.23961.03861.0726
SGI 1.11451.20331.21831.12280.99740.90260.87070.91750.99791.0126
DEPI 0.9951.04341.0331.05611.03441.04781.02971.00060.98261.004
SGAI 0.9030.82510.84580.84491.00061.12891.14781.14951.01880.96
LVGI 1.02420.93920.94990.9220.92010.95611.01141.07121.0671.0324
TATA -0.0479-0.0223-0.0532-0.0653-0.0722-0.065-0.0645-0.0455-0.0587-0.0526
M-score -2.69-2.69-2.82-2.66-2.84-2.66-2.57-2.54-2.66-2.74
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