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Exterran Holdings Inc (NYSE:EXH)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

EXH' s 10-Year Beneish M-Score Range
Min: -5.15   Max: -0.49
Current: -2.85

-5.15
-0.49

During the past 13 years, the highest Beneish M-Score of Exterran Holdings Inc was -0.49. The lowest was -5.15. And the median was -2.80.


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 * 0.9477+0.528 * 0.8909+0.404 * 1.1334+0.892 * 1.001+0.115 * 1.0278
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9992+4.679 * -0.0742-0.327 * 0.9201
=-2.85

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $434 Mil.
Revenue was 643.008 + 735.68 + 776.003 + 837.344 = $2,992 Mil.
Gross Profit was 233.486 + 236.286 + 244.781 + 256.659 = $971 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.
Net Income was 32.596 + 22.647 + 40.977 + 9.335 = $106 Mil.
Non Operating Income was 7.127 + 7.841 + 9.225 + 11.961 = $36 Mil.
Cash Flow from Operations was 53.892 + 127.466 + 147.623 + 57.873 = $387 Mil.
Accounts Receivable was $457 Mil.
Revenue was 809.896 + 829.566 + 718.704 + 630.735 = $2,989 Mil.
Gross Profit was 224.742 + 234.611 + 210.68 + 194.335 = $864 Mil.
Total Current Assets was $1,322 Mil.
Total Assets was $4,363 Mil.
Property, Plant and Equipment(Net PPE) was $2,859 Mil.
Depreciation, Depletion and Amortization(DDA) was $344 Mil.
Selling, General & Admin. Expense(SGA) was $366 Mil.
Total Current Liabilities was $782 Mil.
Long-Term Debt was $1,630 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)
=(433.885 / 2992.035) / (457.363 / 2988.901)
=0.14501334 / 0.15302046
=0.9477

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)
=(236.286 / 2988.901) / (233.486 / 2992.035)
=0.28919258 / 0.32459914
=0.8909

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 - (1242.962 + 2834.188) / 4278.936) / (1 - (1322.087 + 2859.422) / 4363.052)
=0.04715799 / 0.04160918
=1.1334

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
=2992.035 / 2988.901
=1.001

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))
=(343.712 / (343.712 + 2859.422)) / (330.381 / (330.381 + 2834.188))
=0.10730491 / 0.1044
=1.0278

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)
=(365.772 / 2992.035) / (365.682 / 2988.901)
=0.12224857 / 0.12234664
=0.9992

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)
=((1585.423 + 591.025) / 4278.936) / ((1629.654 + 782.423) / 4363.052)
=0.50864234 / 0.55284168
=0.9201

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
=(105.555 - 36.154 - 386.854) / 4278.936
=-0.0742

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 -2.85 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 1.30710.61212.64350.8241.25480.64651.07711.22370.74240.9356
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 -2.25-2.64-1.31-1.45-3.51-3.98-2.80-2.48-3.38-2.66

Exterran Holdings Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.21830.67570.99361.08520.74570.9940.61290.6940.9360.9477
GMI 1.19341.1271.03920.98110.93090.96270.99240.99440.97420.8909
AQI 0.67270.50580.54590.82230.60450.79520.7240.87041.04951.1334
SGI 1.09281.07271.06721.05151.05791.13291.21741.22571.13051.001
DEPI 1.03771.08360.98950.99150.99770.9741.04491.04041.04471.0278
SGAI 0.9220.92950.95380.95531.00130.90110.82320.84470.84320.9992
LVGI 1.00041.02681.14481.02050.98151.02420.93920.94990.9220.9201
TATA -0.0565-0.0608-0.1013-0.0317-0.1129-0.0896-0.0658-0.0972-0.0653-0.0742
M-score -2.47-3.12-3.10-2.59-3.38-2.88-3.01-3.02-2.66-2.85
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