Switch to:

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1381

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1386

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1381

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1386

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1381

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1386

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1381

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1386
Quality Distribution Inc (NAS:QLTY)
Beneish M-Score
-2.78 (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.

Quality Distribution Inc has a M-score of -3.44 suggests that the company is not a manipulator.

QLTY' s 10-Year Beneish M-Score Range
Min: -7.49   Max: -1.85
Current: -2.78

-7.49
-1.85

During the past 13 years, the highest Beneish M-Score of Quality Distribution Inc was -1.85. The lowest was -7.49. And the median was -2.57.


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 Quality Distribution 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 * 1.0463+0.528 * 1.0763+0.404 * 0.649+0.892 * 1.0628+0.115 * 0.8825
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9525+4.679 * -0.1951-0.327 * 1.1051
=-3.44

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $138.5 Mil.
Revenue was 234.487 + 225.421 + 235.671 + 239.296 = $934.9 Mil.
Gross Profit was 45.599 + 43.753 + 49.683 + 55.985 = $195.0 Mil.
Total Current Assets was $188.5 Mil.
Total Assets was $443.2 Mil.
Property, Plant and Equipment(Net PPE) was $166.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.9 Mil.
Selling, General & Admin. Expense(SGA) was $145.7 Mil.
Total Current Liabilities was $82.6 Mil.
Long-Term Debt was $379.9 Mil.
Net Income was 3.073 + -22.798 + 2.763 + -31.147 = $-48.1 Mil.
Non Operating Income was -0.157 + -0.089 + -0.419 + 0.271 = $-0.4 Mil.
Cash Flow from Operations was 1.408 + 6.619 + 20.903 + 9.829 = $38.8 Mil.
Accounts Receivable was $124.5 Mil.
Revenue was 229.422 + 215.392 + 222.078 + 212.733 = $879.6 Mil.
Gross Profit was 52.997 + 49.397 + 48.796 + 46.309 = $197.5 Mil.
Total Current Assets was $168.9 Mil.
Total Assets was $510.5 Mil.
Property, Plant and Equipment(Net PPE) was $184.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.0 Mil.
Selling, General & Admin. Expense(SGA) was $143.9 Mil.
Total Current Liabilities was $80.4 Mil.
Long-Term Debt was $401.8 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)
=(138.453 / 934.875) / (124.502 / 879.625)
=0.14809787 / 0.14153986
=1.0463

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)
=(43.753 / 879.625) / (45.599 / 934.875)
=0.22452636 / 0.20860543
=1.0763

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 - (188.515 + 165.964) / 443.15) / (1 - (168.888 + 184.238) / 510.52)
=0.20009252 / 0.30830134
=0.649

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
=934.875 / 879.625
=1.0628

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))
=(23.992 / (23.992 + 184.238)) / (24.923 / (24.923 + 165.964))
=0.11521875 / 0.13056416
=0.8825

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)
=(145.722 / 934.875) / (143.941 / 879.625)
=0.15587325 / 0.16363905
=0.9525

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)
=((379.936 + 82.561) / 443.15) / ((401.761 + 80.389) / 510.52)
=1.0436579 / 0.94442921
=1.1051

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
=(-48.109 - -0.394 - 38.759) / 443.15
=-0.1951

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.

Quality Distribution Inc has a M-score of -3.44 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.

Quality Distribution Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.17430.91571.12610.75931.13351.03841.03051.11410.9616
GMI 1.07691.073201.03141.15911.22760.98390.93231.0106
AQI 0.99351.00991.11910.98870.4581.04990.99531.47530.6545
SGI 1.10011.09011.02931.08480.75261.1191.08641.12891.1041
DEPI 1.05861.24040.95851.01590.90321.10811.20371.02990.7494
SGAI 1.8150.74825.19231.23870.78130.81380.96361.20671.0261
LVGI 1.22690.65521.04621.00071.54411.0340.87350.7981.104
TATA -0.06810.0069-0.0377-0.0531-0.7876-0.0748-0.02840.0588-0.2218
M-score -2.72-2.22-3.74-2.90-6.55-2.51-2.45-1.79-3.66

Quality Distribution Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.03051.03811.11871.04791.11411.040.96140.91090.96161.0463
GMI 0.94721.00230.99920.97080.96840.92770.9210.95491.01061.0763
AQI 0.99530.97081.5731.7471.47531.55150.81580.74940.65450.649
SGI 1.08641.08071.09371.09891.12891.15751.15781.14191.10411.0628
DEPI 1.20371.22521.30041.15281.02990.8550.69380.69130.74940.8825
SGAI 1.01830.96091.05281.16621.1421.2061.11631.02261.02610.9525
LVGI 0.87350.82730.78060.7950.7980.88671.02931.03751.1041.1051
TATA -0.0284-0.0080.04890.060.05880.0373-0.1042-0.1521-0.2218-0.1951
M-score -2.48-2.33-1.73-1.72-1.76-1.96-3.04-3.32-3.66-3.44
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)
Free 7-day Trial
FEEDBACK
Email Hide