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Exterran Holdings Inc (NYSE:EXH)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

EXH' s 10-Year Beneish M-Score Range
Min: -5.15   Max: -0.46
Current: -2.67

-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 -2.72.


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 * 1.1691+0.528 * 0.9085+0.404 * 1.0386+0.892 * 0.9974+0.115 * 0.9826
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.019+4.679 * -0.0608-0.327 * 1.067
=-2.67

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $506 Mil.
Revenue was 729.082 + 793.628 + 723.832 + 739.27 = $2,986 Mil.
Gross Profit was 269.012 + 275.349 + 266.485 + 255.974 = $1,067 Mil.
Total Current Assets was $1,256 Mil.
Total Assets was $4,827 Mil.
Property, Plant and Equipment(Net PPE) was $3,334 Mil.
Depreciation, Depletion and Amortization(DDA) was $396 Mil.
Selling, General & Admin. Expense(SGA) was $372 Mil.
Total Current Liabilities was $572 Mil.
Long-Term Debt was $2,048 Mil.
Net Income was 32.142 + 19.143 + 34.05 + 12.377 = $98 Mil.
Non Operating Income was -20.357 + -57.421 + 0.288 + 8.58 = $-69 Mil.
Cash Flow from Operations was 134.634 + 99.247 + 157.519 + 68.711 = $460 Mil.
Accounts Receivable was $434 Mil.
Revenue was 643.008 + 739.018 + 775.584 + 835.906 = $2,994 Mil.
Gross Profit was 233.486 + 237.464 + 244.931 + 255.869 = $972 Mil.
Total Current Assets was $1,243 Mil.
Total Assets was $4,279 Mil.
Property, Plant and Equipment(Net PPE) was $2,834 Mil.
Depreciation, Depletion and Amortization(DDA) was $330 Mil.
Selling, General & Admin. Expense(SGA) was $366 Mil.
Total Current Liabilities was $591 Mil.
Long-Term Debt was $1,585 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)
=(505.948 / 2985.812) / (433.885 / 2993.516)
=0.16945072 / 0.1449416
=1.1691

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)
=(275.349 / 2993.516) / (269.012 / 2985.812)
=0.32461827 / 0.35729644
=0.9085

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 - (1255.98 + 3334.161) / 4826.538) / (1 - (1242.962 + 2834.188) / 4278.936)
=0.04897858 / 0.04715799
=1.0386

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
=2985.812 / 2993.516
=0.9974

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))
=(330.381 / (330.381 + 2834.188)) / (396.357 / (396.357 + 3334.161))
=0.1044 / 0.10624718
=0.9826

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)
=(371.862 / 2985.812) / (365.877 / 2993.516)
=0.12454301 / 0.12222317
=1.019

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)
=((2047.575 + 571.787) / 4826.538) / ((1585.423 + 591.025) / 4278.936)
=0.54269996 / 0.50864234
=1.067

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
=(97.712 - -68.91 - 460.111) / 4826.538
=-0.0608

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 -2.67 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.94860.9940.74770.69440.93560.94721.21661.32331.27561.1691
GMI 0.93090.96270.99280.99450.97410.89090.86410.84590.85680.9085
AQI 0.60450.79520.7240.87041.04951.13341.19981.31831.23961.0386
SGI 1.05791.13291.21691.2251.1311.00150.9070.87520.91750.9974
DEPI 0.99770.9741.04491.04041.04471.02781.03491.01691.00060.9826
SGAI 1.00130.90110.82330.84470.8430.9991.1271.14641.14951.019
LVGI 0.98151.02420.93920.94990.9220.92010.95611.01141.07121.067
TATA -0.1129-0.0896-0.0658-0.0974-0.0585-0.0655-0.061-0.0605-0.0476-0.0608
M-score -3.19-2.88-2.89-3.02-2.63-2.81-2.64-2.56-2.55-2.67
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