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International Shipholding Corp (NYSE:ISH)
Beneish M-Score
-2.25 (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.

International Shipholding Corp has a M-score of -2.25 suggests that the company is not a manipulator.

ISH' s 10-Year Beneish M-Score Range
Min: -5.58   Max: 7476.3
Current: -2.25

-5.58
7476.3

During the past 13 years, the highest Beneish M-Score of International Shipholding Corp was 7476.30. The lowest was -5.58. And the median was -2.60.


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 International Shipholding Corp 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 * 1.3265+0.528 * 0.9458+0.404 * 1.0015+0.892 * 1.0319+0.115 * 0.9983
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9034+4.679 * -0.0096-0.327 * 1.123
=-2.25

* 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 $39.8 Mil.
Revenue was 74.41 + 76.752 + 72.694 + 76.193 = $300.0 Mil.
Gross Profit was 13.81 + 14.456 + 11.091 + 19.833 = $59.2 Mil.
Total Current Assets was $88.8 Mil.
Total Assets was $686.1 Mil.
Property, Plant and Equipment(Net PPE) was $479.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.1 Mil.
Selling, General & Admin. Expense(SGA) was $22.3 Mil.
Total Current Liabilities was $78.2 Mil.
Long-Term Debt was $239.0 Mil.
Net Income was -2.565 + -0.664 + -3.217 + 16.867 = $10.4 Mil.
Non Operating Income was 0.793 + 0.45 + 0.41 + 1.931 = $3.6 Mil.
Cash Flow from Operations was 3.608 + 4.219 + 7.498 + -1.874 = $13.5 Mil.
Accounts Receivable was $29.0 Mil.
Revenue was 77.938 + 74.897 + 81.124 + 56.81 = $290.8 Mil.
Gross Profit was 14.627 + 14.67 + 13.406 + 11.548 = $54.3 Mil.
Total Current Assets was $98.6 Mil.
Total Assets was $666.4 Mil.
Property, Plant and Equipment(Net PPE) was $453.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.3 Mil.
Selling, General & Admin. Expense(SGA) was $24.0 Mil.
Total Current Liabilities was $82.7 Mil.
Long-Term Debt was $191.7 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)
=(39.751 / 300.049) / (29.04 / 290.769)
=0.13248169 / 0.0998731
=1.3265

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)
=(14.456 / 290.769) / (13.81 / 300.049)
=0.18657766 / 0.19726778
=0.9458

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 - (88.798 + 479.252) / 686.055) / (1 - (98.647 + 453.26) / 666.358)
=0.17200516 / 0.17175602
=1.0015

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
=300.049 / 290.769
=1.0319

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))
=(29.318 / (29.318 + 453.26)) / (31.054 / (31.054 + 479.252))
=0.06075287 / 0.06085368
=0.9983

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)
=(22.346 / 300.049) / (23.97 / 290.769)
=0.0744745 / 0.08243657
=0.9034

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)
=((239.028 + 78.248) / 686.055) / ((191.703 + 82.703) / 666.358)
=0.46246438 / 0.41179966
=1.123

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
=(10.421 - 3.584 - 13.451) / 686.055
=-0.0096

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.

International Shipholding Corp has a M-score of -2.25 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.

International Shipholding Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.79071.30970.64751.10110.91390.58241.01741.37491.72980.7266
GMI 1.17240.97211.13810.63511.45380.78821.72280.47651.19651.1201
AQI 1.06211.09952.61480.47370.93350.88780.90030.67031.21880.8584
SGI 1.0220.99491.04850.71711.20991.59320.76340.90740.92521.2737
DEPI 1.09540.92040.17225.12811.05361.00961.6880.9980.94110.8932
SGAI 1.01540.99371.11491.34940.97470.66361.22671.08951.19860.7679
LVGI 0.96360.90240.8790.96770.92451.03581.17261.12930.85930.8583
TATA -0.002-0.0189-0.04440.0091-0.0049-0.0443-0.0823-0.02120.0058-0.0203
M-score -2.53-2.24-2.32-2.58-2.15-2.65-2.74-2.78-1.65-2.50

International Shipholding Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.97751.06791.72981.61131.47871.2720.72660.65890.9021.3265
GMI 0.55651.00991.19651.27581.26941.31321.121.04321.02280.9458
AQI 0.73580.80841.21881.20051.20561.08590.85841.0030.98241.0015
SGI 0.95520.95930.92520.98241.07691.17011.27371.16311.1081.0319
DEPI 0.8830.8540.94111.1080.98490.9630.89320.89650.92640.9983
SGAI 0.98981.03251.19861.14271.14850.98590.76790.84910.80440.9034
LVGI 0.91910.86740.85930.99560.97530.9460.85830.90910.94721.123
TATA -0.0435-0.03550.0058-0.0176-0.0223-0.0309-0.0203-0.0152-0.0109-0.0096
M-score -3.07-2.67-1.65-1.80-1.87-2.01-2.50-2.65-2.48-2.25
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