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Sturm Ruger & Co Inc (NYSE:RGR)
Beneish M-Score
-2.34 (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 -2.34 suggests that the company is not a manipulator.

RGR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.86   Max: -1.78
Current: -2.34

-4.86
-1.78

During the past 13 years, the highest Beneish M-Score of Sturm Ruger & Co Inc was -1.78. The lowest was -4.86. 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 * 1.0566+0.528 * 0.9255+0.404 * 1.2151+0.892 * 1.2562+0.115 * 0.9891
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5888+4.679 * -0.057-0.327 * 0.9817
=-2.34

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $70.3 Mil.
Revenue was 161.427 + 167.944 + 173.109 + 152.396 = $654.9 Mil.
Gross Profit was 50.251 + 56.694 + 59.113 + 48.243 = $214.3 Mil.
Total Current Assets was $231.1 Mil.
Total Assets was $360.9 Mil.
Property, Plant and Equipment(Net PPE) was $102.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.8 Mil.
Selling, General & Admin. Expense(SGA) was $85.6 Mil.
Total Current Liabilities was $85.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 19.85 + 23.515 + 23.278 + 17.1 = $83.7 Mil.
Non Operating Income was 0.418 + 0.293 + 0.206 + 0.373 = $1.3 Mil.
Cash Flow from Operations was 19.3 + 36.662 + 29.429 + 17.62 = $103.0 Mil.
Accounts Receivable was $53.0 Mil.
Revenue was 120.871 + 140.872 + 136.954 + 122.605 = $521.3 Mil.
Gross Profit was 34.011 + 48.508 + 41.397 + 33.96 = $157.9 Mil.
Total Current Assets was $165.8 Mil.
Total Assets was $293.1 Mil.
Property, Plant and Equipment(Net PPE) was $108.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.6 Mil.
Selling, General & Admin. Expense(SGA) was $115.7 Mil.
Total Current Liabilities was $70.5 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)
=(70.323 / 654.876) / (52.982 / 521.302)
=0.10738369 / 0.10163399
=1.0566

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)
=(157.876 / 521.302) / (214.301 / 654.876)
=0.3028494 / 0.32723905
=0.9255

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 - (231.118 + 102.064) / 360.852) / (1 - (165.757 + 108.866) / 293.121)
=0.07667964 / 0.06310704
=1.2151

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
=654.876 / 521.302
=1.2562

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))
=(36.579 / (36.579 + 108.866)) / (34.799 / (34.799 + 102.064))
=0.25149713 / 0.25426156
=0.9891

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)
=(85.564 / 654.876) / (115.679 / 521.302)
=0.1306568 / 0.221904
=0.5888

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 + 85.205) / 360.852) / ((0 + 70.504) / 293.121)
=0.23612173 / 0.24052866
=0.9817

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
=(83.743 - 1.29 - 103.011) / 360.852
=-0.057

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 -2.34 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.

Sturm Ruger & Co Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.05350.93011.42330.651.3381.03820.68111.11930.9331.4247
GMI 1.17910.57581.06610.72870.98240.96820.93410.96841.20930.9946
AQI 1.02570.58681.81850.66210.81970.58161.87081.00461.50730.7184
SGI 1.08340.93361.15971.49320.94181.28841.49571.39940.79111.0122
DEPI 1.31450.86910.97310.93151.03240.94641.01381.09740.67340.9627
SGAI 0.90361.28280.90080.94661.00410.95950.910.88911.72030.671
LVGI 1.37661.09421.31720.89070.90641.13651.41970.93310.74611.0935
TATA -0.2668-0.1391-0.0232-0.1389-0.0322-0.0899-0.1012-0.032-0.0707-0.1651
M-score -3.57-3.74-1.78-3.25-2.42-2.84-2.61-2.13-2.82-2.95

Sturm Ruger & Co Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.79360.77090.9331.23791.41931.33861.42471.0330.97491.0566
GMI 1.06931.14511.20931.25961.18921.08750.99460.90360.91790.9255
AQI 1.58021.47761.50731.1370.75520.54910.71840.66211.00591.2151
SGI 1.13610.93150.79110.72840.73740.86341.01221.1481.23171.2562
DEPI 0.88010.76630.67340.76180.85110.9630.96270.99310.9580.9891
SGAI 0.90831.0181.72031.80021.91741.76010.6710.66420.5830.5888
LVGI 0.66450.57680.74610.78821.10791.30271.09351.00560.89710.9817
TATA 0.05590.0461-0.0707-0.1643-0.2654-0.3087-0.1651-0.1252-0.0671-0.057
M-score -1.90-2.16-2.82-3.18-3.78-4.10-2.95-3.04-2.55-2.34
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