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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: -5.15   Max: -0.46
Current: -2.59

-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 -2.80.


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 * 1.3233+0.528 * 0.8459+0.404 * 1.3183+0.892 * 0.8752+0.115 * 1.0169
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1464+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 + 829.566 = $3,251 Mil.
Gross Profit was 244.931 + 255.869 + 224.742 + 234.611 = $960 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 $332 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 / 3250.952)
=0.18188461 / 0.13745143
=1.3233

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 / 3250.952) / (266.485 / 2845.128)
=0.29534518 / 0.34916144
=0.8459

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 / 3250.952
=0.8752

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))
=(331.611 / (331.611 + 2832.962)) / (378.537 / (378.537 + 3294.933))
=0.10478854 / 0.10304617
=1.0169

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) / (370.598 / 3250.952)
=0.1306827 / 0.11399676
=1.1464

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 0.93141.31871.6180.8241.25480.64651.07710.96190.94450.9356
GMI 1.01981.03371.18481.06020.95431.0061.02241.19050.93310.9741
AQI 0.99261.00010.50392.53770.58430.56211.16110.67270.60451.0495
SGI 1.10171.10782.0881.59451.19040.8980.89011.0881.06251.131
DEPI 0.74250.97821.10560.87170.81880.93540.83441.03770.99771.0447
SGAI 0.53751.01281.24720.84261.11851.06541.17130.92121.00220.843
LVGI 0.95530.96061.27470.73181.23081.03980.95681.00040.98150.922
TATA -0.0609-0.037-0.0619-0.019-0.2397-0.1869-0.0707-0.0577-0.1129-0.0653
M-score -2.67-2.24-1.45-1.45-3.51-3.98-2.80-2.72-3.19-2.66

Exterran Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.81481.08520.94860.9940.74770.69440.93560.94721.21661.3233
GMI 1.03920.98110.93090.96270.99280.99450.97410.89090.86410.8459
AQI 0.54590.82230.60450.79520.7240.87041.04951.13341.19981.3183
SGI 1.06721.05151.05791.13291.21691.2251.1311.00150.9070.8752
DEPI 0.98950.99150.99770.9741.04491.04041.04471.02781.03491.0169
SGAI 0.95380.95531.00130.90110.82330.84470.8430.9991.1271.1464
LVGI 1.14481.02050.98151.02420.93920.94990.9220.92010.95611.0114
TATA -0.1013-0.0317-0.1129-0.0896-0.0658-0.0974-0.0653-0.0742-0.069-0.0682
M-score -3.27-2.59-3.19-2.88-2.89-3.02-2.66-2.85-2.68-2.59
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