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International Shipholding Corp (NYSE:ISH)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

ISH' s 10-Year Beneish M-Score Range
Min: -5.58   Max: 7535.93
Current: -2.52

-5.58
7535.93

During the past 13 years, the highest Beneish M-Score of International Shipholding Corp was 7535.93. The lowest was -5.58. And the median was -2.58.


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 * 0.8828+0.528 * 0.9718+0.404 * 0.9824+0.892 * 1.108+0.115 * 0.9264
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8044+4.679 * -0.0109-0.327 * 0.9472
=-2.52

* 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 $35.7 Mil.
Revenue was 76.752 + 72.694 + 76.193 + 77.938 = $303.6 Mil.
Gross Profit was 14.456 + 11.091 + 24.502 + 13.106 = $63.2 Mil.
Total Current Assets was $79.9 Mil.
Total Assets was $642.9 Mil.
Property, Plant and Equipment(Net PPE) was $442.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.2 Mil.
Selling, General & Admin. Expense(SGA) was $21.9 Mil.
Total Current Liabilities was $69.0 Mil.
Long-Term Debt was $188.6 Mil.
Net Income was -0.664 + -3.217 + 16.867 + -2.222 = $10.8 Mil.
Non Operating Income was 0.45 + 0.41 + 1.931 + -0.694 = $2.1 Mil.
Cash Flow from Operations was 4.219 + 7.498 + -1.874 + 5.855 = $15.7 Mil.
Accounts Receivable was $36.5 Mil.
Revenue was 74.897 + 81.124 + 56.81 + 61.162 = $274.0 Mil.
Gross Profit was 14.67 + 13.406 + 11.548 + 15.768 = $55.4 Mil.
Total Current Assets was $93.8 Mil.
Total Assets was $641.3 Mil.
Property, Plant and Equipment(Net PPE) was $425.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.7 Mil.
Selling, General & Admin. Expense(SGA) was $24.6 Mil.
Total Current Liabilities was $78.3 Mil.
Long-Term Debt was $193.0 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)
=(35.736 / 303.577) / (36.537 / 273.993)
=0.11771643 / 0.13335012
=0.8828

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)
=(11.091 / 273.993) / (14.456 / 303.577)
=0.20216575 / 0.20803618
=0.9718

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 - (79.866 + 442.665) / 642.921) / (1 - (93.789 + 425.303) / 641.337)
=0.18725473 / 0.19060962
=0.9824

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
=303.577 / 273.993
=1.108

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))
=(27.665 / (27.665 + 425.303)) / (31.243 / (31.243 + 442.665))
=0.06107495 / 0.0659263
=0.9264

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)
=(21.942 / 303.577) / (24.619 / 273.993)
=0.0722782 / 0.08985266
=0.8044

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)
=((188.623 + 68.986) / 642.921) / ((192.999 + 78.292) / 641.337)
=0.40068531 / 0.4230085
=0.9472

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
=(10.764 - 2.097 - 15.698) / 642.921
=-0.0109

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 -2.52 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 0.80291.30060.651.08770.91390.72921.0341.32711.59590.7251
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 -2.51-2.25-2.32-2.59-2.15-2.52-2.72-2.83-1.77-2.50

International Shipholding Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.01590.98981.07061.59591.51311.37331.18810.72510.66580.8828
GMI 0.51460.55651.00991.19651.27581.26941.35111.06630.99140.9718
AQI 0.76060.73580.80841.21881.20051.20561.08590.85841.0030.9824
SGI 0.93820.95520.95930.92520.98241.07691.17011.27371.16311.108
DEPI 0.78540.8830.8540.94111.1080.98490.9630.89320.89650.9264
SGAI 1.0470.98981.03251.19861.14271.14850.98590.76790.84910.8044
LVGI 0.86480.91910.86740.85930.99560.97530.9460.85830.90910.9472
TATA -0.0488-0.0435-0.03550.0058-0.0176-0.0223-0.0309-0.0203-0.0152-0.0109
M-score -3.09-3.06-2.67-1.77-1.89-1.97-2.06-2.53-2.67-2.52
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