OSTK has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Beneish M-Score 0.56 higher than -2.22, which implies that it might have manipulated its financial results.
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.
Overstock.com, Inc. has a M-score of 0.56 signals that the company is a manipulator.
During the past 13 years, the highest Beneish M-Score of Overstock.com, Inc. was 0.56. The lowest was -5.90. And the median was -3.22.
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 Overstock.com, 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 * 0.7018||+||0.528 * 0.9506||+||0.404 * 8.4255||+||0.892 * 1.1864||+||0.115 * 1.2414|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0483||+||4.679 * 0.0159||-||0.327 * 0.7419|
* 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 $16 Mil.|
Revenue was 397.593 + 301.426 + 293.204 + 311.994 = $1,304 Mil.
Gross Profit was 71.735 + 59.15 + 57.839 + 58.936 = $248 Mil.
Total Current Assets was $219 Mil.
Total Assets was $320 Mil.
Property, Plant and Equipment(Net PPE) was $27 Mil.
Depreciation, Depletion and Amortization(DDA) was $15 Mil.
Selling, General & Admin. Expense(SGA) was $232 Mil.
Total Current Liabilities was $194 Mil.
Long-Term Debt was $0 Mil.
Net Income was 73.581 + 3.533 + 3.698 + 7.697 = $89 Mil.
Non Operating Income was -0.595 + 0.165 + -0.15 + 0.345 = $-0 Mil.
Cash Flow from Operations was 69.861 + 10.263 + 5.174 + -1.653 = $84 Mil.
|Accounts Receivable was $19 Mil.
Revenue was 342.034 + 255.352 + 239.536 + 262.367 = $1,099 Mil.
Gross Profit was 61.211 + 46.542 + 43.169 + 47.508 = $198 Mil.
Total Current Assets was $156 Mil.
Total Assets was $182 Mil.
Property, Plant and Equipment(Net PPE) was $21 Mil.
Depreciation, Depletion and Amortization(DDA) was $16 Mil.
Selling, General & Admin. Expense(SGA) was $186 Mil.
Total Current Liabilities was $149 Mil.
Long-Term Debt was $0 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)|
|=||(16.047 / 1304.217)||/||(19.273 / 1099.289)|
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)|
|=||(59.15 / 1099.289)||/||(71.735 / 1304.217)|
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 - (219.291 + 27.194) / 319.767)||/||(1 - (155.998 + 21.037) / 181.985)|
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))|
|=||(16.009 / (16.009 + 21.037))||/||(14.522 / (14.522 + 27.194))|
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)|
|=||(231.566 / 1304.217)||/||(186.193 / 1099.289)|
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)|
|=||((0 + 193.582) / 319.767)||/||((0 + 148.501) / 181.985)|
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|
|=||(88.509 - -0.235||-||83.645)||/||319.767|
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.
Overstock.com, Inc. has a M-score of 0.56 signals that the company is likely to 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
Overstock.com, Inc. Annual Data
Overstock.com, Inc. Quarterly Data