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SINA Corp (NAS:SINA)
Beneish M-Score
0.00 (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.

SINA Corp has a M-score of signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of SINA Corp was 0.01. The lowest was -3.04. And the median was -1.98.


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 SINA Corp 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $230.3 Mil.
Revenue was 226.294 + 213.598 + 184.587 + 211.137 = $835.6 Mil.
Gross Profit was 143.277 + 127.606 + 107.27 + 136.753 = $514.9 Mil.
Total Current Assets was $2,298.3 Mil.
Total Assets was $3,791.2 Mil.
Property, Plant and Equipment(Net PPE) was $50.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General & Admin. Expense(SGA) was $319.9 Mil.
Total Current Liabilities was $586.1 Mil.
Long-Term Debt was $800.0 Mil.
Net Income was 9.766 + 11.668 + -10.309 + 59.751 = $70.9 Mil.
Non Operating Income was -0.973 + 16.303 + 2.567 + 54.843 = $72.7 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0.0 Mil.
Accounts Receivable was $214.7 Mil.
Revenue was 198.613 + 187.013 + 171.478 + 197.018 = $754.1 Mil.
Gross Profit was 124.829 + 113.371 + 102.947 + 126.965 = $468.1 Mil.
Total Current Assets was $2,768.1 Mil.
Total Assets was $3,779.1 Mil.
Property, Plant and Equipment(Net PPE) was $70.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General & Admin. Expense(SGA) was $291.9 Mil.
Total Current Liabilities was $359.5 Mil.
Long-Term Debt was $800.0 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)
=(230.286 / 835.616) / (214.749 / 754.122)
=0.27558831 / 0.28476692
=

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)
=(127.606 / 754.122) / (143.277 / 835.616)
=0.62073776 / 0.61619931
=

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 - (2298.293 + 50.441) / 3791.154) / (1 - (2768.093 + 70.091) / 3779.089)
=0.3804699 / 0.24897667
=

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
=835.616 / 754.122
=

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))
=(0 / (0 + 70.091)) / (0 / (0 + 50.441))
=0 / 0
=

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)
=(319.871 / 835.616) / (291.928 / 754.122)
=0.38279664 / 0.38710978
=

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)
=((800 + 586.074) / 3791.154) / ((800 + 359.542) / 3779.089)
=0.36560741 / 0.30683109
=

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
=(70.876 - 72.74 - 0) / 3791.154
=-0.0005

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.

SINA Corp has a M-score of signals that the company is likely to 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.

SINA Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.20651.08930.92970.97631.06691.04391.09691.13791.16290.7681
GMI 1.0751.0191.03711.06210.96021.051.04210.89730.95241.0047
AQI 0.81830.79850.84113.56890.87220.96780.99950.68581.24191.2221
SGI 1.09971.15631.50160.97021.12291.19921.09631.25651.15511.1463
DEPI 1.20110.8931.03250.73871.36611.5360.78650.92420.72750.9516
SGAI 0.99490.86650.97331.1420.71571.37610.99870.98591.19960.904
LVGI 0.8810.89420.94080.58981.09020.95171.06122.54280.82650.9858
TATA -0.044-0.0481-0.047-0.0379-0.0121-0.0655-0.0182-0.0163-0.028-0.0709
M-score -2.38-2.51-2.33-1.56-2.38-2.54-2.41-2.89-2.26-2.79

SINA Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.1143
GMI 0.9195
AQI 0.8525
SGI 1.1598
DEPI 10.9295
SGAI 0.9891
LVGI 1.0994
TATA 0.0057
M-score -1.20
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