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GuruFocus has detected 5 Warning Signs with Mobile Mini Inc $MINI.
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Mobile Mini Inc (NAS:MINI)
Beneish M-Score
-2.45 (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.

Mobile Mini Inc has a M-score of -2.45 suggests that the company is not a manipulator.

MINI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Max: 0.99
Current: -2.45

-3.15
0.99

During the past 13 years, the highest Beneish M-Score of Mobile Mini Inc was 0.99. The lowest was -3.15. And the median was -2.46.


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 Mobile Mini 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 * 1.2906+0.528 * 0.9952+0.404 * 0.9743+0.892 * 0.9583+0.115 * 0.9631
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9893+4.679 * -0.0387-0.327 * 1.0227
=-2.45

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $99.2 Mil.
Revenue was 130.387 + 128.853 + 124.849 + 124.533 = $508.6 Mil.
Gross Profit was 126.102 + 124.956 + 121.171 + 119.922 = $492.2 Mil.
Total Current Assets was $118.7 Mil.
Total Assets was $2,004.9 Mil.
Property, Plant and Equipment(Net PPE) was $1,099.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $63.7 Mil.
Selling, General & Admin. Expense(SGA) was $309.3 Mil.
Total Current Liabilities was $732.7 Mil.
Long-Term Debt was $295.9 Mil.
Net Income was 19.469 + 12.709 + 4.072 + 10.998 = $47.2 Mil.
Non Operating Income was -0.009 + -0.005 + -11.467 + 0 = $-11.5 Mil.
Cash Flow from Operations was 40.223 + 31.311 + 29.429 + 35.281 = $136.2 Mil.
Accounts Receivable was $80.2 Mil.
Revenue was 134.517 + 133.343 + 130.288 + 132.629 = $530.8 Mil.
Gross Profit was 129.745 + 128.977 + 124.888 + 127.496 = $511.1 Mil.
Total Current Assets was $97.4 Mil.
Total Assets was $1,976.8 Mil.
Property, Plant and Equipment(Net PPE) was $1,083.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $60.3 Mil.
Selling, General & Admin. Expense(SGA) was $326.3 Mil.
Total Current Liabilities was $755.8 Mil.
Long-Term Debt was $235.8 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)
=(99.175 / 508.622) / (80.191 / 530.777)
=0.19498763 / 0.15108228
=1.2906

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)
=(511.106 / 530.777) / (492.151 / 508.622)
=0.96293924 / 0.96761642
=0.9952

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 - (118.724 + 1099.262) / 2004.894) / (1 - (97.4 + 1083.01) / 1976.775)
=0.39249357 / 0.40286072
=0.9743

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
=508.622 / 530.777
=0.9583

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))
=(60.344 / (60.344 + 1083.01)) / (63.734 / (63.734 + 1099.262))
=0.05277805 / 0.05480156
=0.9631

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)
=(309.294 / 508.622) / (326.252 / 530.777)
=0.60810189 / 0.61466868
=0.9893

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)
=((295.916 + 732.674) / 2004.894) / ((235.827 + 755.818) / 1976.775)
=0.51303959 / 0.50164789
=1.0227

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
=(47.248 - -11.481 - 136.244) / 2004.894
=-0.0387

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.

Mobile Mini Inc has a M-score of -2.45 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 local exchange's currency.

Mobile Mini Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.91451.26450.73811.18391.01531.00920.98691.39230.83061.2906
GMI 1.00550.99951.00150.99751.00670.98741.00160.98610.98730.9952
AQI 0.91959.24131.01671.00070.99571.00030.99290.42081.05720.9743
SGI 1.16441.30510.90140.88211.08711.0581.071.09591.19150.9583
DEPI 0.92250.09430.82791.05080.99310.99481.0529.29560.60120.9631
SGAI 1.02510.97431.00761.05311.03331.02721.01521.07910.97460.9893
LVGI 1.08581.29710.91280.94390.9330.91880.8761.32491.03731.0227
TATA -0.035-0.0386-0.0336-0.021-0.0311-0.0301-0.055-0.0362-0.074-0.0387
M-score -2.650.99-2.95-2.50-2.52-2.55-2.65-1.61-2.85-2.45

Mobile Mini Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.03721.39231.31531.19251.13620.83060.89021.09231.12531.2906
GMI 0.9880.98610.99020.98960.98910.98730.99110.99020.9930.9952
AQI 0.98730.42080.98680.98390.44771.05720.45010.44570.97790.9743
SGI 1.07641.09591.15641.1871.21071.19151.09881.03560.98710.9583
DEPI 1.12789.29561.04340.96855.70660.60125.42245.59060.90860.9631
SGAI 1.10411.07911.01030.99140.99520.97460.98360.97760.97840.9893
LVGI 0.94631.32491.42441.38131.38851.03731.00241.06841.03171.0227
TATA -0.0442-0.0362-0.0604-0.0673-0.0687-0.074-0.0527-0.0477-0.0424-0.0387
M-score -2.58-1.61-2.48-2.59-2.30-2.85-2.46-2.31-2.60-2.45
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