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Sturm Ruger & Co Inc (NYSE:RGR)
Beneish M-Score
-2.55 (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 -2.55 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: -2.55

-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 * 0.9749+0.528 * 0.9179+0.404 * 1.0059+0.892 * 1.2317+0.115 * 0.958
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.583+4.679 * -0.0671-0.327 * 0.8971
=-2.55

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $65.0 Mil.
Revenue was 167.944 + 173.109 + 152.396 + 120.871 = $614.3 Mil.
Gross Profit was 56.694 + 59.113 + 48.243 + 34.011 = $198.1 Mil.
Total Current Assets was $219.8 Mil.
Total Assets was $343.7 Mil.
Property, Plant and Equipment(Net PPE) was $98.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.1 Mil.
Selling, General & Admin. Expense(SGA) was $81.4 Mil.
Total Current Liabilities was $79.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 23.515 + 23.278 + 17.1 + 11.963 = $75.9 Mil.
Non Operating Income was 0.293 + 0.206 + 0.373 + 0.247 = $1.1 Mil.
Cash Flow from Operations was 36.662 + 29.429 + 17.62 + 14.085 = $97.8 Mil.
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.



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)
=(64.978 / 614.32) / (54.113 / 498.758)
=0.10577224 / 0.1084955
=0.9749

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)
=(147.603 / 498.758) / (198.061 / 614.32)
=0.29594112 / 0.32240689
=0.9179

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 - (219.812 + 98.839) / 343.707) / (1 - (161.098 + 109.432) / 291.667)
=0.0728993 / 0.07246963
=1.0059

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
=614.32 / 498.758
=1.2317

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))
=(36.667 / (36.667 + 109.432)) / (35.084 / (35.084 + 98.839))
=0.25097365 / 0.26197143
=0.958

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)
=(81.431 / 614.32) / (113.407 / 498.758)
=0.13255469 / 0.22737881
=0.583

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 + 79.069) / 343.707) / ((0 + 74.792) / 291.667)
=0.23004769 / 0.25642942
=0.8971

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
=(75.856 - 1.119 - 97.796) / 343.707
=-0.0671

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 -2.55 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

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 0.90361.28280.90080.94051.01050.95950.910.88911.72030.671
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.89590.79360.77090.9331.23791.41931.33861.42471.0330.9749
GMI 1.00741.06931.14511.20931.25961.18921.08750.99460.90360.9179
AQI 1.36141.58021.47761.50731.1370.75520.54910.71840.66211.0059
SGI 1.31171.13610.93150.79110.72840.73740.86341.01221.1481.2317
DEPI 0.95640.88010.76630.67340.76180.85110.9630.96270.99310.958
SGAI 0.85050.90571.01311.72031.80021.91741.76010.6710.66420.583
LVGI 0.78250.66450.57680.74610.78821.10791.30271.09351.00560.8971
TATA 0.02170.05590.0461-0.0707-0.1643-0.2654-0.3087-0.1651-0.1252-0.0671
M-score -1.95-1.90-2.16-2.82-3.18-3.78-4.10-2.95-3.04-2.55
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