MERC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Mercer International, Inc. has a M-score of -2.67 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Mercer International, Inc. was 0.15. The lowest was -3.32. And the median was -2.32.
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 Mercer International, 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 * 0.9429||+||0.528 * 1.2724||+||0.404 * 0.981||+||0.892 * 0.9929||+||0.115 * 0.9515|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0241||+||4.679 * -0.0519||-||0.327 * 1.0338|
* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $136 Mil.|
Revenue was 263.174 + 274.092 + 278.199 + 254.081 = $1,070 Mil.
Gross Profit was 22.584 + 30.274 + 11.508 + 23.634 = $88 Mil.
Total Current Assets was $472 Mil.
Total Assets was $1,549 Mil.
Property, Plant and Equipment(Net PPE) was $1,039 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $50 Mil.
Total Current Liabilities was $165 Mil.
Long-Term Debt was $938 Mil.
Net Income was -9.432 + -2.996 + -12.926 + -0.545 = $-26 Mil.
Non Operating Income was 4.463 + 2.901 + 7.01 + 6.087 = $20 Mil.
Cash Flow from Operations was -24.604 + 6.535 + 23.931 + 28.126 = $34 Mil.
|Accounts Receivable was $145 Mil.
Revenue was 239.043 + 288.283 + 258.444 + 291.4 = $1,077 Mil.
Gross Profit was 21.34 + 22.234 + 34.094 + 35.099 = $113 Mil.
Total Current Assets was $455 Mil.
Total Assets was $1,561 Mil.
Property, Plant and Equipment(Net PPE) was $1,067 Mil.
Depreciation, Depletion and Amortization(DDA) was $75 Mil.
Selling, General & Admin. Expense(SGA) was $49 Mil.
Total Current Liabilities was $180 Mil.
Long-Term Debt was $896 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(135.893 / 1069.546)||/||(145.15 / 1077.17)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(30.274 / 1077.17)||/||(22.584 / 1069.546)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (471.773 + 1038.631) / 1548.559)||/||(1 - (454.88 + 1066.506) / 1560.581)|
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.
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))|
|=||(74.919 / (74.919 + 1066.506))||/||(76.956 / (76.956 + 1038.631))|
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)|
|=||(50.326 / 1069.546)||/||(49.49 / 1077.17)|
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)|
|=||((938.31 + 165.499) / 1548.559)||/||((896.155 + 179.876) / 1560.581)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-25.899 - 20.461||-||33.988)||/||1548.559|
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.
Mercer International, Inc. has a M-score of -2.67 suggests that the company will not be a manipulator.
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
Mercer International, Inc. Annual Data
Mercer International, Inc. Quarterly Data