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SINA Corp (NAS:SINA)
Beneish M-Score
-2.43 (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.

SINA' s 10-Year Beneish M-Score Range
Min: -3.28   Max: -0.86
Current: -2.43

-3.28
-0.86

During the past 13 years, the highest Beneish M-Score of SINA Corp was -0.86. The lowest was -3.28. And the median was -2.31.


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 (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $193.4 Mil.
Revenue was 197.018 + 184.63 + 157.485 + 125.973 = $665.1 Mil.
Gross Profit was 126.965 + 118.116 + 84.345 + 64.616 = $394.0 Mil.
Total Current Assets was $2,118.8 Mil.
Total Assets was $2,897.8 Mil.
Property, Plant and Equipment(Net PPE) was $80.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General & Admin. Expense(SGA) was $225.1 Mil.
Total Current Liabilities was $328.1 Mil.
Long-Term Debt was $800.0 Mil.
Net Income was 44.45 + 25.386 + -11.533 + -13.171 = $45.1 Mil.
Non Operating Income was 20.132 + 1.594 + 3.139 + -9.326 = $15.5 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0.0 Mil.
Accounts Receivable was $135.3 Mil.
Revenue was 139.126 + 152.378 + 131.605 + 106.22 = $529.3 Mil.
Gross Profit was 79.365 + 82.94 + 69.983 + 49.109 = $281.4 Mil.
Total Current Assets was $885.3 Mil.
Total Assets was $1,482.9 Mil.
Property, Plant and Equipment(Net PPE) was $76.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.7 Mil.
Selling, General & Admin. Expense(SGA) was $181.7 Mil.
Total Current Liabilities was $227.0 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)
=(193.381 / 665.106) / (135.251 / 529.329)
=0.29075215 / 0.25551406
=

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)
=(118.116 / 529.329) / (126.965 / 665.106)
=0.53161078 / 0.59244993
=

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 - (2118.802 + 80.92) / 2897.843) / (1 - (885.347 + 76.64) / 1482.906)
=0.24091057 / 0.35128255
=

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
=665.106 / 529.329
=

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 + 76.64)) / (0 / (0 + 80.92))
=0.27923861 / 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)
=(225.138 / 665.106) / (181.739 / 529.329)
=0.33849943 / 0.34333845
=

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 + 328.106) / 2897.843) / ((0 + 227.029) / 1482.906)
=0.38929162 / 0.15309736
=

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
=(45.132 - 15.539 - 0) / 2897.843
=0.0102

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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.29650.8781.20651.08930.92970.97631.06691.04391.0969
GMI 1.00981.02671.0751.0191.03711.06210.96021.051.0421
AQI 1.89721.04660.81830.79850.84113.56890.87220.96780.9995
SGI 1.74990.96781.09971.15631.50160.97021.12291.19921.0963
DEPI 1.18831.01461.20110.8931.03250.73871.36611.49560.8077
SGAI 0.94761.31970.99490.86650.97331.1420.71571.37610.9987
LVGI 0.90360.78270.8810.89420.94080.58981.09020.95171.0612
TATA -0.01-0.0284-0.0415-0.0481-0.047-0.038-0.0129-0.0655-0.0182
M-score -1.16-2.70-2.37-2.51-2.33-1.56-2.38-2.55-2.41

SINA Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.09371.04391.09531.13361.14841.09691.16911.04581.1143
GMI 1.02571.051.06421.0811.07191.04210.99580.97560.9195
AQI 0.72270.96780.93880.83761.14290.99950.94360.80220.8525
SGI 1.17541.19921.171.14661.13971.09631.12321.14651.1598
DEPI 1.92661.49561.27311.0580.9090.80770.78350.78060.7902
SGAI 1.05651.37611.39051.17691.08080.99870.92350.99950.9891
LVGI 1.00510.95171.2331.28631.07171.06121.14761.15991.0994
TATA -0.0891-0.0655-0.083-0.0852-0.043-0.0183-0.0125-0.0179-0.0088
M-score -2.66-2.55-2.73-2.77-2.37-2.41-2.36-2.56-2.43
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