Switch to:
Sturm Ruger & Co Inc (NYSE:RGR)
Beneish M-Score
-3.78 (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.

Sturm Ruger & Co Inc has a M-score of -3.78 suggests that the company is not a manipulator.

RGR' s 10-Year Beneish M-Score Range
Min: -4.85   Max: -1.78
Current: -3.78

-4.85
-1.78

During the past 13 years, the highest Beneish M-Score of Sturm Ruger & Co Inc was -1.78. The lowest was -4.85. And the median was -2.61.


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 Sturm Ruger & Co 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 * 1.4193+0.528 * 1.1892+0.404 * 0.7552+0.892 * 0.7374+0.115 * 0.8511
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.9174+4.679 * -0.2654-0.327 * 1.1079
=-3.78

* 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 $54.1 Mil.
Revenue was 140.872 + 136.954 + 122.605 + 98.327 = $498.8 Mil.
Gross Profit was 48.508 + 41.397 + 33.96 + 23.738 = $147.6 Mil.
Total Current Assets was $161.1 Mil.
Total Assets was $291.7 Mil.
Property, Plant and Equipment(Net PPE) was $109.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.7 Mil.
Selling, General & Admin. Expense(SGA) was $113.4 Mil.
Total Current Liabilities was $74.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 17.56 + 15.503 + -14.759 + 6.781 = $25.1 Mil.
Non Operating Income was 0.617 + 0.469 + -0.116 + 0.673 = $1.6 Mil.
Cash Flow from Operations was 48.081 + 32.783 + 24.597 + -4.622 = $100.8 Mil.
Accounts Receivable was $51.7 Mil.
Revenue was 153.657 + 169.884 + 181.9 + 170.942 = $676.4 Mil.
Gross Profit was 50.353 + 61.123 + 63.632 + 62.94 = $238.0 Mil.
Total Current Assets was $150.4 Mil.
Total Assets was $283.7 Mil.
Property, Plant and Equipment(Net PPE) was $106.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $28.8 Mil.
Selling, General & Admin. Expense(SGA) was $80.2 Mil.
Total Current Liabilities was $65.7 Mil.
Long-Term Debt was $0.0 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)
=(54.113 / 498.758) / (51.704 / 676.383)
=0.1084955 / 0.0764419
=1.4193

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)
=(41.397 / 676.383) / (48.508 / 498.758)
=0.35194261 / 0.29594112
=1.1892

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 - (161.098 + 109.432) / 291.667) / (1 - (150.412 + 106.056) / 283.69)
=0.07246963 / 0.09595685
=0.7552

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
=498.758 / 676.383
=0.7374

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))
=(28.808 / (28.808 + 106.056)) / (36.667 / (36.667 + 109.432))
=0.21360778 / 0.25097365
=0.8511

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)
=(113.407 / 498.758) / (80.212 / 676.383)
=0.22737881 / 0.11858962
=1.9174

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 + 74.792) / 291.667) / ((0 + 65.662) / 283.69)
=0.25642942 / 0.23145687
=1.1079

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
=(25.085 - 1.643 - 100.839) / 291.667
=-0.2654

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.

Sturm Ruger & Co Inc has a M-score of -3.78 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.

Sturm Ruger & Co Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.92331.05350.93011.42330.651.3381.03820.68111.11930.933
GMI 1.20431.17910.57581.06610.72870.98240.96820.93410.96841.2093
AQI 1.56511.02570.58681.81850.66210.81970.58161.87081.00461.5073
SGI 1.06251.08340.93361.15971.49320.94181.28841.49571.39940.7911
DEPI 0.92381.31450.86910.97310.93151.03240.94641.01381.09740.6734
SGAI 1.00980.90361.28280.90080.94051.01050.95950.910.88911.7203
LVGI 1.00951.37661.09421.31720.89070.90641.13651.41970.93310.7461
TATA -0.0285-0.2626-0.1391-0.0232-0.1389-0.0322-0.0899-0.1012-0.032-0.0707
M-score -2.31-3.55-3.74-1.78-3.25-2.42-2.84-2.61-2.13-2.82

Sturm Ruger & Co Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.82880.82550.91961.11930.89590.79360.77090.9331.23791.4193
GMI 0.95570.95780.9550.96841.00741.06931.14511.20931.25961.1892
AQI 1.77121.18881.58791.00461.36141.58021.47761.50731.1370.7552
SGI 1.4641.46761.46211.39941.31171.13610.93150.79110.72840.7374
DEPI 1.0320.97050.94961.09740.95640.88010.76630.67340.76180.8511
SGAI 0.91620.87460.86670.88880.85050.90571.01311.72031.80021.9174
LVGI 1.62071.66491.46320.93310.78250.66450.57680.74610.78821.1079
TATA -0.0855-0.1159-0.0231-0.03220.02170.05590.0461-0.0707-0.1643-0.2654
M-score -2.52-2.91-2.17-2.13-1.95-1.90-2.16-2.82-3.18-3.78
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