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Exterran Holdings Inc (NYSE:EXH)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

EXH' s 10-Year Beneish M-Score Range
Min: -5.07   Max: -0.25
Current: -2.59

-5.07
-0.25

During the past 13 years, the highest Beneish M-Score of Exterran Holdings Inc was -0.25. The lowest was -5.07. And the median was -2.73.


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 * 1.3271+0.528 * 0.8477+0.404 * 1.3183+0.892 * 0.8727+0.115 * 1.0297
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1475+4.679 * -0.0682-0.327 * 1.0114
=-2.59

* 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 $517 Mil.
Revenue was 723.832 + 739.27 + 643.008 + 739.018 = $2,845 Mil.
Gross Profit was 266.485 + 255.974 + 233.486 + 237.464 = $993 Mil.
Total Current Assets was $1,251 Mil.
Total Assets was $4,819 Mil.
Property, Plant and Equipment(Net PPE) was $3,295 Mil.
Depreciation, Depletion and Amortization(DDA) was $379 Mil.
Selling, General & Admin. Expense(SGA) was $372 Mil.
Total Current Liabilities was $633 Mil.
Long-Term Debt was $1,958 Mil.
Net Income was 34.05 + 12.377 + 32.596 + 22.647 = $102 Mil.
Non Operating Income was 0.288 + 8.58 + 7.127 + 6.826 = $23 Mil.
Cash Flow from Operations was 157.519 + 68.711 + 53.892 + 127.466 = $408 Mil.
Accounts Receivable was $447 Mil.
Revenue was 775.584 + 835.906 + 809.896 + 838.922 = $3,260 Mil.
Gross Profit was 244.931 + 255.869 + 224.742 + 239.426 = $965 Mil.
Total Current Assets was $1,303 Mil.
Total Assets was $4,322 Mil.
Property, Plant and Equipment(Net PPE) was $2,833 Mil.
Depreciation, Depletion and Amortization(DDA) was $336 Mil.
Selling, General & Admin. Expense(SGA) was $371 Mil.
Total Current Liabilities was $733 Mil.
Long-Term Debt was $1,564 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)
=(517.485 / 2845.128) / (446.848 / 3260.308)
=0.18188461 / 0.13705699
=1.3271

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)
=(255.974 / 3260.308) / (266.485 / 2845.128)
=0.29597449 / 0.34916144
=0.8477

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 - (1251.134 + 3294.933) / 4818.758) / (1 - (1303.249 + 2832.962) / 4321.731)
=0.05658948 / 0.04292724
=1.3183

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
=2845.128 / 3260.308
=0.8727

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))
=(336.281 / (336.281 + 2832.962)) / (378.537 / (378.537 + 3294.933))
=0.10610767 / 0.10304617
=1.0297

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)
=(371.809 / 2845.128) / (371.31 / 3260.308)
=0.1306827 / 0.11388801
=1.1475

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)
=((1957.733 + 633.217) / 4818.758) / ((1564.308 + 733.116) / 4321.731)
=0.53768004 / 0.5315981
=1.0114

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
=(101.67 - 22.821 - 407.588) / 4818.758
=-0.0682

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 -2.59 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

Mar04Mar05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.93141.31871.34320.99250.96851.17490.75411.25110.73860.9367
GMI 1.01981.03370.89891.39740.91781.0461.03161.18820.92440.9765
AQI 0.99261.00010.90051.42010.43980.74671.16110.51730.77151.0693
SGI 1.10171.10781.2422.68071.25120.85430.90641.09021.04481.1273
DEPI 0.74250.97820.87371.1030.77920.9830.81721.05840.98791.0561
SGAI 0.53751.01281.26230.83261.131.05461.17060.92021.00240.8442
LVGI 0.95530.96060.94130.9911.23081.03980.95681.00040.98150.922
TATA -0.0613-0.037-0.0538-0.019-0.235-0.1869-0.1011-0.1068-0.0682-0.0653
M-score -2.67-2.24-2.33-0.65-3.78-3.43-3.22-2.74-3.13-2.66

Exterran Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.82151.10590.73561.0110.75680.6990.94050.95021.22011.3271
GMI 1.03670.97570.92690.95320.98390.98750.97380.8930.8660.8477
AQI 0.54590.82230.77150.79520.7240.87041.06931.13341.19981.3183
SGI 1.05851.03181.0491.1141.20221.2171.12280.99840.90430.8727
DEPI 1.0111.02510.98790.9951.04341.0331.05611.03441.04781.0297
SGAI 0.95150.95441.00160.90320.82530.84590.84491.00021.12811.1475
LVGI 1.14481.02050.98151.02420.93920.94990.9220.92010.95611.0114
TATA -0.1526-0.0797-0.0703-0.0479-0.0223-0.0534-0.0653-0.0742-0.069-0.0682
M-score -3.51-2.81-3.14-2.69-2.69-2.83-2.66-2.85-2.68-2.59
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