Switch to:
Exterran Holdings Inc (NYSE:EXH)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

EXH' s 10-Year Beneish M-Score Range
Min: -5.15   Max: -0.46
Current: -2.68

-5.15
-0.46

During the past 13 years, the highest Beneish M-Score of Exterran Holdings Inc was -0.46. The lowest was -5.15. And the median was -2.83.


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 * 1.2178+0.528 * 0.8644+0.404 * 1.1998+0.892 * 0.906+0.115 * 1.0349
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1275+4.679 * -0.069-0.327 * 0.9561
=-2.68

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 12.377 + 32.596 + 22.647 + 40.977 = $109 Mil.
Non Operating Income was 8.58 + 7.127 + 7.841 + 9.225 = $33 Mil.
Cash Flow from Operations was 68.711 + 53.892 + 127.466 + 147.623 = $398 Mil.
Accounts Receivable was $458 Mil.
Revenue was 835.906 + 809.896 + 829.566 + 718.704 = $3,194 Mil.
Gross Profit was 255.869 + 224.742 + 234.611 + 210.68 = $926 Mil.
Total Current Assets was $1,359 Mil.
Total Assets was $4,370 Mil.
Property, Plant and Equipment(Net PPE) was $2,836 Mil.
Depreciation, Depletion and Amortization(DDA) was $336 Mil.
Selling, General & Admin. Expense(SGA) was $363 Mil.
Total Current Liabilities was $751 Mil.
Long-Term Debt was $1,643 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)
=(504.989 / 2893.961) / (457.672 / 3194.072)
=0.17449751 / 0.14328794
=1.2178

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)
=(233.486 / 3194.072) / (255.974 / 2893.961)
=0.28988138 / 0.33536285
=0.8644

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 - (1264.415 + 3175.249) / 4663.117) / (1 - (1359.271 + 2835.847) / 4369.64)
=0.04791924 / 0.03993967
=1.1998

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
=2893.961 / 3194.072
=0.906

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))
=(335.554 / (335.554 + 2835.847)) / (361.586 / (361.586 + 3175.249))
=0.10580624 / 0.10223434
=1.0349

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)
=(370.367 / 2893.961) / (362.553 / 3194.072)
=0.12797926 / 0.11350809
=1.1275

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)
=((1852.568 + 589.911) / 4663.117) / ((1642.847 + 750.928) / 4369.64)
=0.52378677 / 0.54781973
=0.9561

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
=(108.597 - 32.773 - 397.692) / 4663.117
=-0.069

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 -2.68 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

Mar05Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.31870.61212.64350.8241.25480.64651.07710.96190.94450.9356
GMI 1.03371.14131.03811.06020.95431.0061.02241.19050.93310.9741
AQI 1.00010.98290.51272.53770.58430.56211.16110.67270.60451.0495
SGI 1.10781.70931.22161.59451.19040.8980.89011.0881.06251.131
DEPI 0.97821.20640.91640.87170.81880.93540.83441.03770.99771.0447
SGAI 1.01281.36560.91330.84261.11851.06541.17130.92121.00220.843
LVGI 0.96061.03281.23420.73181.23081.03980.95681.00040.98150.922
TATA -0.037-0.098-0.0619-0.019-0.2397-0.1869-0.0707-0.0577-0.1129-0.0653
M-score -2.24-2.64-1.31-1.45-3.51-3.98-2.80-2.72-3.19-2.66

Exterran Holdings Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.67570.81481.08520.94860.9940.74770.69430.93650.94811.2178
GMI 1.1271.03920.98110.93090.96270.99280.99480.97460.89120.8644
AQI 0.50580.54590.82230.60450.79520.7240.87041.04951.13341.1998
SGI 1.07271.06721.05151.05791.13291.21691.22521.131.00060.906
DEPI 1.08360.98950.99150.99770.9741.04491.04041.04471.02781.0349
SGAI 0.92950.95380.95531.00130.90110.82330.84490.84330.99941.1275
LVGI 1.02681.14481.02050.98151.02420.93920.94990.9220.92010.9561
TATA -0.0608-0.1013-0.0317-0.1129-0.0896-0.0658-0.0972-0.0653-0.0742-0.069
M-score -3.12-3.27-2.59-3.19-2.88-2.89-3.02-2.66-2.85-2.68
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)
Free 7-day Trial
FEEDBACK