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SINA Corp (NAS:SINA)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

SINA' s 10-Year Beneish M-Score Range
Min: -3.28   Max: -1.04
Current: -2.83

-3.28
-1.04

During the past 13 years, the highest Beneish M-Score of SINA Corp was -1.04. The lowest was -3.28. And the median was -2.35.


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 * 0.923+0.528 * 0.9191+0.404 * 0.8476+0.892 * 1.2419+0.115 * 0.8757
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1286+4.679 * -0.015-0.327 * 1.8815
=-2.83

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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 $35.0 Mil.
Selling, General & Admin. Expense(SGA) was $291.9 Mil.
Total Current Liabilities was $359.5 Mil.
Long-Term Debt was $800.0 Mil.
Net Income was 133.595 + 16.622 + -33.166 + 44.45 = $161.5 Mil.
Non Operating Income was 133.269 + 23.06 + -31.847 + 20.132 = $144.6 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 73.713 = $73.7 Mil.
Accounts Receivable was $187.3 Mil.
Revenue was 184.63 + 157.485 + 125.973 + 139.126 = $607.2 Mil.
Gross Profit was 118.116 + 84.345 + 64.616 + 79.365 = $346.4 Mil.
Total Current Assets was $1,440.8 Mil.
Total Assets was $2,142.0 Mil.
Property, Plant and Equipment(Net PPE) was $72.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.7 Mil.
Selling, General & Admin. Expense(SGA) was $208.3 Mil.
Total Current Liabilities was $349.3 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)
=(214.749 / 754.122) / (187.335 / 607.214)
=0.28476692 / 0.30851561
=0.923

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)
=(113.371 / 607.214) / (124.829 / 754.122)
=0.5705435 / 0.62073776
=0.9191

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 - (2768.093 + 70.091) / 3779.089) / (1 - (1440.777 + 72.046) / 2142.041)
=0.24897667 / 0.29374695
=0.8476

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
=754.122 / 607.214
=1.2419

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 + 72.046)) / (35.037 / (35.037 + 70.091))
=0.29184769 / 0.33327943
=0.8757

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)
=(291.928 / 754.122) / (208.273 / 607.214)
=0.38710978 / 0.34299769
=1.1286

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 + 359.542) / 3779.089) / ((0 + 349.315) / 2142.041)
=0.30683109 / 0.16307578
=1.8815

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
=(161.501 - 144.614 - 73.713) / 3779.089
=-0.015

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 -2.83 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 1.18831.01461.20110.8931.03250.73871.36611.49560.80770.9242
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 -0.01-0.0284-0.0415-0.0481-0.047-0.038-0.0129-0.0655-0.0182-0.0163
M-score -1.16-2.70-2.37-2.51-2.33-1.56-2.38-2.55-2.41-2.89

SINA Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.13361.14841.09691.16911.04581.11431.13791.1241.2180.923
GMI 1.0811.07191.04210.99580.97560.91950.89730.88870.86840.9191
AQI 0.83761.14290.99950.94360.80220.85250.68580.68590.84460.8476
SGI 1.14661.13971.09631.12321.14651.15981.25651.29421.28731.2419
DEPI 1.08470.93090.82290.79620.78660.79390.92710.93880.93110.8757
SGAI 1.17691.08080.99870.92350.99950.98910.98591.04791.01941.1286
LVGI 1.28631.07171.06121.14761.15991.09942.54282.71932.00361.8815
TATA -0.0852-0.043-0.0183-0.0125-0.0183-0.0095-0.0158-0.015-0.0097-0.015
M-score -2.76-2.37-2.41-2.36-2.56-2.43-2.89-2.94-2.54-2.83
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