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International Shipholding Corp (NYSE:ISH)
Beneish M-Score
-3.06 (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 -3.06 suggests that the company is not a manipulator.

ISH' s 10-Year Beneish M-Score Range
Min: -5.22   Max: 7476.9
Current: -3.06

-5.22
7476.9

During the past 13 years, the highest Beneish M-Score of International Shipholding Corp was 7476.90. The lowest was -5.22. And the median was -2.66.


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 * 1.0153+0.528 * 0.9463+0.404 * 1.287+0.892 * 0.9618+0.115 * 0.8813
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9485+4.679 * -0.1241-0.327 * 1.2038
=-3.06

* 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 $28.7 Mil.
Revenue was 68.026 + 70.978 + 74.41 + 76.752 = $290.2 Mil.
Gross Profit was 15.815 + 32.437 + 13.81 + 14.456 = $76.5 Mil.
Total Current Assets was $76.6 Mil.
Total Assets was $590.6 Mil.
Property, Plant and Equipment(Net PPE) was $371.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.1 Mil.
Selling, General & Admin. Expense(SGA) was $20.4 Mil.
Total Current Liabilities was $70.2 Mil.
Long-Term Debt was $208.1 Mil.
Net Income was -4.501 + -48.253 + -2.565 + -0.664 = $-56.0 Mil.
Non Operating Income was -2.498 + 0.526 + 0.793 + 0.45 = $-0.7 Mil.
Cash Flow from Operations was 1.905 + 8.326 + 3.608 + 4.219 = $18.1 Mil.
Accounts Receivable was $29.3 Mil.
Revenue was 72.694 + 76.169 + 77.938 + 74.897 = $301.7 Mil.
Gross Profit was 15.261 + 30.73 + 14.627 + 14.67 = $75.3 Mil.
Total Current Assets was $73.0 Mil.
Total Assets was $642.8 Mil.
Property, Plant and Equipment(Net PPE) was $449.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.8 Mil.
Selling, General & Admin. Expense(SGA) was $22.4 Mil.
Total Current Liabilities was $68.3 Mil.
Long-Term Debt was $183.3 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)
=(28.653 / 290.166) / (29.343 / 301.698)
=0.09874692 / 0.09725951
=1.0153

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)
=(32.437 / 301.698) / (15.815 / 290.166)
=0.24954756 / 0.26370422
=0.9463

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 - (76.569 + 371.155) / 590.56) / (1 - (72.975 + 448.991) / 642.754)
=0.24186535 / 0.1879226
=1.287

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
=290.166 / 301.698
=0.9618

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))
=(30.756 / (30.756 + 448.991)) / (29.117 / (29.117 + 371.155))
=0.06410879 / 0.07274303
=0.8813

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)
=(20.428 / 290.166) / (22.394 / 301.698)
=0.07040108 / 0.07422654
=0.9485

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)
=((208.087 + 70.217) / 590.56) / ((183.299 + 68.324) / 642.754)
=0.4712544 / 0.39147637
=1.2038

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
=(-55.983 - -0.729 - 18.058) / 590.56
=-0.1241

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 -3.06 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.48870.93150.77310.68841.01741.37491.72980.72611.0832
GMI 1.00031.77230.66741.35970.57821.02981.13351.00680.9723
AQI 0.93511.32460.93350.88780.90030.66711.2240.86261.3986
SGI 1.09881.06281.43021.34780.76340.90740.92521.27360.9507
DEPI 0.87651.00731.05361.00961.6880.9980.84440.99550.8419
SGAI 1.09130.97030.82460.78451.22671.08951.19860.75590.9864
LVGI 3.66820.81540.99991.0431.16451.13780.87070.84021.2517
TATA -0.0444-0.0131-0.0049-0.0443-0.0823-0.02120.0058-0.0197-0.1303
M-score -4.00-1.94-2.49-2.50-3.34-2.50-1.70-2.54-3.01

International Shipholding Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.72981.61131.47871.2720.72610.65890.90211.32661.08321.0153
GMI 1.13351.20751.20311.24321.00670.88160.86250.79630.9190.9463
AQI 1.2241.20051.20561.08590.86261.0030.98241.00151.39861.287
SGI 0.92520.98241.07691.17011.27361.1631.10791.03180.95070.9618
DEPI 0.84441.04260.97130.99490.99550.97370.98181.03420.84190.8813
SGAI 1.19861.14271.14850.98590.75590.83110.78670.88380.98030.9485
LVGI 0.87070.99560.97530.9460.84020.90910.94721.1231.25171.2038
TATA 0.0058-0.0176-0.0223-0.0309-0.0197-0.0146-0.0104-0.0091-0.1303-0.1241
M-score -1.70-1.84-1.91-2.04-2.54-2.72-2.55-2.32-3.04-3.06
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