Switch to:
Lydall Inc (NYSE:LDL)
Beneish M-Score
-2.74 (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.

Lydall Inc has a M-score of -2.74 suggests that the company is not a manipulator.

LDL' s 10-Year Beneish M-Score Range
Min: -3.18   Max: -2.02
Current: -2.74

-3.18
-2.02

During the past 13 years, the highest Beneish M-Score of Lydall Inc was -2.02. The lowest was -3.18. And the median was -2.67.


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 Lydall 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 * 0.8335+0.528 * 0.9751+0.404 * 0.8393+0.892 * 1.1097+0.115 * 0.8293
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9792+4.679 * -0.0354-0.327 * 0.8298
=-2.74

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $94.1 Mil.
Revenue was 134.561 + 127.306 + 127.583 + 134.227 = $523.7 Mil.
Gross Profit was 33.889 + 27.7 + 25.562 + 28.564 = $115.7 Mil.
Total Current Assets was $235.9 Mil.
Total Assets was $375.1 Mil.
Property, Plant and Equipment(Net PPE) was $111.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.7 Mil.
Selling, General & Admin. Expense(SGA) was $74.8 Mil.
Total Current Liabilities was $70.7 Mil.
Long-Term Debt was $40.0 Mil.
Net Income was 10.817 + 18.937 + 5.733 + 4.158 = $39.6 Mil.
Non Operating Income was -0.553 + 19.669 + 0.547 + 0.508 = $20.2 Mil.
Cash Flow from Operations was 5.592 + -1.097 + 11.129 + 17.125 = $32.7 Mil.
Accounts Receivable was $101.8 Mil.
Revenue was 148.793 + 125.226 + 99.894 + 97.995 = $471.9 Mil.
Gross Profit was 34.653 + 26.199 + 20.329 + 20.494 = $101.7 Mil.
Total Current Assets was $229.5 Mil.
Total Assets was $377.6 Mil.
Property, Plant and Equipment(Net PPE) was $115.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.7 Mil.
Selling, General & Admin. Expense(SGA) was $68.8 Mil.
Total Current Liabilities was $73.5 Mil.
Long-Term Debt was $60.7 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)
=(94.133 / 523.677) / (101.771 / 471.908)
=0.17975393 / 0.21565856
=0.8335

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)
=(27.7 / 471.908) / (33.889 / 523.677)
=0.21545513 / 0.22096636
=0.9751

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 - (235.915 + 111.616) / 375.12) / (1 - (229.483 + 114.995) / 377.565)
=0.07354713 / 0.08763259
=0.8393

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
=523.677 / 471.908
=1.1097

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))
=(14.734 / (14.734 + 114.995)) / (17.711 / (17.711 + 111.616))
=0.11357522 / 0.13694743
=0.8293

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)
=(74.759 / 523.677) / (68.801 / 471.908)
=0.14275785 / 0.14579325
=0.9792

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)
=((40.006 + 70.656) / 375.12) / ((60.703 + 73.52) / 377.565)
=0.29500427 / 0.3554964
=0.8298

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
=(39.645 - 20.171 - 32.749) / 375.12
=-0.0354

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.

Lydall Inc has a M-score of -2.74 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.

Lydall Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00380.91790.98560.72671.42390.93240.82721.01721.04871.1981
GMI 0.93950.93640.98681.09741.55140.77810.96820.85710.95880.998
AQI 0.97390.95960.88751.01060.85510.86350.90760.87610.90561.0669
SGI 1.04390.99881.04830.95260.81431.26981.21350.98781.05031.3464
DEPI 1.02051.00841.03930.91870.93041.03570.90571.02571.08911.0457
SGAI 0.94210.97290.99951.00721.13470.82020.82481.09460.94011.0636
LVGI 0.93280.76510.9720.84121.11431.21590.82760.95220.95031.7311
TATA -0.057-0.1223-0.0509-0.1072-0.1277-0.0353-0.0041-0.0697-0.0403-0.0566
M-score -2.71-3.10-2.73-3.18-2.69-2.67-2.45-2.92-2.60-2.47

Lydall Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.96010.98081.06681.04871.59921.45461.10111.19810.71370.8335
GMI 0.86580.9150.96880.95880.98760.97690.97960.9980.98050.9751
AQI 0.87030.8880.88660.90561.00670.9971.02451.06690.8420.8393
SGI 1.00671.01951.02841.05031.11271.22661.30781.34641.26821.1097
DEPI 1.0051.00191.03321.08911.49121.31041.13631.04570.71930.8293
SGAI 1.07781.05821.00470.94010.93590.9721.05751.06361.0470.9792
LVGI 0.91490.91440.90970.95031.84071.84341.84611.73110.88860.8298
TATA -0.0508-0.0441-0.0314-0.0403-0.0332-0.0428-0.0792-0.0566-0.073-0.0354
M-score -2.86-2.76-2.57-2.60-2.19-2.31-2.75-2.47-2.92-2.74
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK