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Steelcase Inc (NYSE:SCS)
Beneish M-Score
-2.47 (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.

Steelcase Inc has a M-score of -2.47 suggests that the company is not a manipulator.

SCS' s 10-Year Beneish M-Score Range
Min: -3.65   Max: -2.33
Current: -2.47

-3.65
-2.33

During the past 13 years, the highest Beneish M-Score of Steelcase Inc was -2.33. The lowest was -3.65. And the median was -2.72.


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 Steelcase 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 * 0.9358+0.528 * 1.027+0.404 * 1.0336+0.892 * 1.054+0.115 * 1.066
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.978+4.679 * -0.0041-0.327 * 1.0092
=-2.47

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $355 Mil.
Revenue was 800 + 786.7 + 723.1 + 779.4 = $3,089 Mil.
Gross Profit was 214.9 + 244.4 + 229.1 + 248.4 = $937 Mil.
Total Current Assets was $868 Mil.
Total Assets was $1,736 Mil.
Property, Plant and Equipment(Net PPE) was $389 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $771 Mil.
Total Current Liabilities was $571 Mil.
Long-Term Debt was $283 Mil.
Net Income was 11.8 + 30.5 + 21 + 23.9 = $87 Mil.
Non Operating Income was 2.6 + 3.7 + 3.9 + -5.1 = $5 Mil.
Cash Flow from Operations was 23.7 + 56.4 + -72.6 + 81.8 = $89 Mil.
Accounts Receivable was $360 Mil.
Revenue was 784.8 + 757.6 + 667.1 + 721.4 = $2,931 Mil.
Gross Profit was 242.8 + 244.3 + 209.7 + 216 = $913 Mil.
Total Current Assets was $945 Mil.
Total Assets was $1,776 Mil.
Property, Plant and Equipment(Net PPE) was $356 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $748 Mil.
Total Current Liabilities was $581 Mil.
Long-Term Debt was $285 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)
=(355 / 3089.2) / (359.9 / 2930.9)
=0.11491648 / 0.12279505
=0.9358

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)
=(244.4 / 2930.9) / (214.9 / 3089.2)
=0.31144017 / 0.30325003
=1.027

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 - (867.5 + 388.7) / 1735.8) / (1 - (945 + 356.1) / 1775.8)
=0.27629911 / 0.26731614
=1.0336

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
=3089.2 / 2930.9
=1.054

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))
=(59.6 / (59.6 + 356.1)) / (60.4 / (60.4 + 388.7))
=0.14337262 / 0.1344912
=1.066

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)
=(771.4 / 3089.2) / (748.3 / 2930.9)
=0.24970866 / 0.25531407
=0.978

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)
=((282.5 + 570.9) / 1735.8) / ((284.6 + 580.5) / 1775.8)
=0.4916465 / 0.48716072
=1.0092

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
=(87.2 - 5.1 - 89.3) / 1735.8
=-0.0041

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.

Steelcase Inc has a M-score of -2.47 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.

Steelcase Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DSRI 0.93680.92020.85521.01950.75861.20191.05090.88771.01461.0249
GMI 0.91950.96710.96390.95291.10761.02260.96310.99970.97550.9546
AQI 1.0030.99520.97871.15980.96481.15540.85671.17330.87990.8066
SGI 1.11431.09761.07961.10440.93070.71981.06341.12821.04341.0419
DEPI 0.95060.93841.05741.08280.96531.10720.96471.12260.98711.0319
SGAI 0.95660.95621.01630.95221.03541.06870.95890.94950.98380.9994
LVGI 1.00110.9731.0421.17921.00180.95621.22330.86841.02071.0437
TATA -0.0436-0.0544-0.0738-0.056-0.067-0.0008-0.0358-0.0331-0.0958-0.0522
M-score -2.68-2.73-2.93-2.63-3.05-2.46-2.69-2.49-2.94-2.78

Steelcase Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 0.96160.94141.01460.94910.97921.11041.02491.00370.97790.9358
GMI 0.97290.97130.97550.96040.96280.96820.95460.97070.99361.027
AQI 0.97080.97130.87990.90840.92110.74550.80660.78020.80381.0336
SGI 1.07371.05791.04341.0271.01541.03291.04191.06441.06981.054
DEPI 1.04391.02650.98711.00110.99530.971.03191.02431.05491.066
SGAI 0.99071.00310.98380.99891.01260.9970.99940.97580.96360.978
LVGI 0.9980.99651.02071.03381.03821.06311.04370.99591.01281.0092
TATA -0.0413-0.0684-0.0958-0.0967-0.0856-0.0704-0.0522-0.0309-0.0312-0.0041
M-score -2.66-2.83-2.94-3.02-2.95-2.82-2.78-2.66-2.66-2.47
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