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SINA Corp (NAS:SINA)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

SINA' s 10-Year Beneish M-Score Range
Min: -3.28   Max: -0.91
Current: -2.42

-3.28
-0.91

During the past 13 years, the highest Beneish M-Score of SINA Corp was -0.91. The lowest was -3.28. And the median was -2.36.


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 * 1.218+0.528 * 0.8684+0.404 * 0.8446+0.892 * 1.2873+0.115 * 0.9309
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0194+4.679 * 0.0159-0.327 * 2.0036
=-2.42

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $249.7 Mil.
Revenue was 187.013 + 171.478 + 197.018 + 184.63 = $740.1 Mil.
Gross Profit was 113.371 + 102.947 + 126.965 + 118.116 = $461.4 Mil.
Total Current Assets was $2,632.8 Mil.
Total Assets was $3,499.6 Mil.
Property, Plant and Equipment(Net PPE) was $76.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.0 Mil.
Selling, General & Admin. Expense(SGA) was $263.7 Mil.
Total Current Liabilities was $308.2 Mil.
Long-Term Debt was $800.0 Mil.
Net Income was 16.622 + -33.166 + 44.45 + 25.386 = $53.3 Mil.
Non Operating Income was 23.06 + -31.847 + 20.132 + 1.594 = $12.9 Mil.
Cash Flow from Operations was 0 + 0 + -15.352 + 0 = $-15.4 Mil.
Accounts Receivable was $159.2 Mil.
Revenue was 157.485 + 125.973 + 139.126 + 152.378 = $575.0 Mil.
Gross Profit was 84.345 + 64.616 + 79.365 + 82.94 = $311.3 Mil.
Total Current Assets was $1,426.3 Mil.
Total Assets was $2,044.9 Mil.
Property, Plant and Equipment(Net PPE) was $71.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.7 Mil.
Selling, General & Admin. Expense(SGA) was $200.9 Mil.
Total Current Liabilities was $323.2 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)
=(249.652 / 740.139) / (159.226 / 574.962)
=0.33730421 / 0.27693308
=1.218

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)
=(102.947 / 574.962) / (113.371 / 740.139)
=0.54136795 / 0.62339506
=0.8684

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 - (2632.761 + 76.249) / 3499.59) / (1 - (1426.321 + 71.62) / 2044.884)
=0.22590646 / 0.26746896
=0.8446

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
=740.139 / 574.962
=1.2873

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))
=(29.692 / (29.692 + 71.62)) / (35.037 / (35.037 + 76.249))
=0.29307486 / 0.31483745
=0.9309

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)
=(263.693 / 740.139) / (200.946 / 574.962)
=0.35627497 / 0.3494944
=1.0194

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 + 308.183) / 3499.59) / ((0 + 323.188) / 2044.884)
=0.31666081 / 0.15804711
=2.0036

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
=(53.292 - 12.939 - -15.352) / 3499.59
=0.0159

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 -2.42 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.

SINA Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.29650.8781.20651.08930.92970.97631.06691.04391.09691.1379
GMI 1.00981.02671.0751.0191.03711.06210.96021.051.04210.8973
AQI 1.89721.04660.81830.79850.84113.56890.87220.96780.99950.6858
SGI 1.74990.96781.09971.15631.50160.97021.12291.19921.09631.2565
DEPI 1.18831.01461.20110.8931.03250.73871.36611.5360.78650.9242
SGAI 0.94761.31970.99490.86650.97331.1420.71571.37610.99870.9859
LVGI 0.90360.78270.8810.89420.94080.58981.09020.95171.06122.5428
TATA -0.01-0.0284-0.0415-0.0481-0.047-0.0379-0.0121-0.0644-0.0182-0.0163
M-score -1.16-2.70-2.37-2.51-2.33-1.56-2.38-2.54-2.41-2.89

SINA Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.09531.13361.14841.09691.16911.04581.11431.13791.1241.218
GMI 1.06421.0811.07191.04210.99580.97560.91950.89730.88870.8684
AQI 0.93880.83761.14290.99950.94360.80220.85250.68580.68590.8446
SGI 1.171.14661.13971.09631.12321.14651.15981.25651.29421.2873
DEPI 1.30751.08640.93330.78650.76290.76020.76960.92420.93820.9309
SGAI 1.39051.17691.08080.99870.92350.99950.98910.98591.04791.0194
LVGI 1.2331.28631.07171.06121.14761.15991.09942.54282.71932.0036
TATA -0.0823-0.0842-0.042-0.0183-0.0125-0.0183-0.00920.01520.01620.0159
M-score -2.72-2.76-2.36-2.41-2.36-2.57-2.43-2.75-2.79-2.42
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