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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-2.82 (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.

Stoneridge Inc has a M-score of -2.82 suggests that the company is not a manipulator.

SRI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.97   Max: -1.69
Current: -2.82

-4.97
-1.69

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.69. The lowest was -4.97. And the median was -2.76.


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 Stoneridge 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 * 1.0961+0.528 * 0.9947+0.404 * 0.8572+0.892 * 1.0014+0.115 * 1.3648
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0715+4.679 * -0.0893-0.327 * 0.9477
=-2.82

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $125.6 Mil.
Revenue was 186.903 + 162.616 + 154.641 + 162.057 = $666.2 Mil.
Gross Profit was 52.751 + 45.161 + 42.239 + 45.145 = $185.3 Mil.
Total Current Assets was $275.8 Mil.
Total Assets was $419.2 Mil.
Property, Plant and Equipment(Net PPE) was $90.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.2 Mil.
Selling, General & Admin. Expense(SGA) was $106.2 Mil.
Total Current Liabilities was $130.7 Mil.
Long-Term Debt was $106.9 Mil.
Net Income was 11.571 + 7.239 + 6.084 + 7.367 = $32.3 Mil.
Non Operating Income was 0.559 + -0.038 + -2.055 + 0.243 = $-1.3 Mil.
Cash Flow from Operations was 16.662 + 1.132 + 37.672 + 15.501 = $71.0 Mil.
Accounts Receivable was $114.5 Mil.
Revenue was 165.289 + 162.825 + 166.811 + 170.338 = $665.3 Mil.
Gross Profit was 45.946 + 43.648 + 44.901 + 49.55 = $184.0 Mil.
Total Current Assets was $246.4 Mil.
Total Assets was $391.5 Mil.
Property, Plant and Equipment(Net PPE) was $86.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.9 Mil.
Selling, General & Admin. Expense(SGA) was $98.9 Mil.
Total Current Liabilities was $127.1 Mil.
Long-Term Debt was $107.0 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)
=(125.638 / 666.217) / (114.456 / 665.263)
=0.1885842 / 0.17204624
=1.0961

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)
=(184.045 / 665.263) / (185.296 / 666.217)
=0.27664999 / 0.2781316
=0.9947

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 - (275.782 + 89.991) / 419.199) / (1 - (246.357 + 86.93) / 391.498)
=0.12744782 / 0.14868786
=0.8572

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
=666.217 / 665.263
=1.0014

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))
=(25.9 / (25.9 + 86.93)) / (18.196 / (18.196 + 89.991))
=0.22954888 / 0.16819026
=1.3648

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)
=(106.166 / 666.217) / (98.944 / 665.263)
=0.15935649 / 0.14872915
=1.0715

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)
=((106.914 + 130.692) / 419.199) / ((107.014 + 127.132) / 391.498)
=0.56680956 / 0.59807713
=0.9477

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
=(32.261 - -1.291 - 70.967) / 419.199
=-0.0893

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.

Stoneridge Inc has a M-score of -2.82 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.

Stoneridge Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.01021.11410.76261.33370.94431.31330.71080.93581.12760.9254
GMI 0.98670.97211.04411.19310.81211.18890.80121.00380.82531.0528
AQI 0.9390.95420.41451.44171.03671.66951.04670.85070.73040.7587
SGI 1.05531.0261.03520.63131.33691.20491.22621.00990.69690.9761
DEPI 1.00370.79691.01871.11741.0721.51970.67930.93180.79511.4328
SGAI 0.97861.04640.98251.1950.88980.87261.24520.94170.95210.9146
LVGI 0.9720.94621.20841.03210.97810.86670.89071.01941.00591.0072
TATA -0.0764-0.0512-0.2926-0.0253-0.0347-0.0386-0.1114-0.0475-0.1419-0.0846
M-score -2.80-2.64-4.31-2.37-2.44-1.69-3.19-2.81-3.52-2.97

Stoneridge Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.91150.68910.86161.01261.08121.45111.23141.03051.0181.0961
GMI 1.02211.00850.94810.88810.83170.87530.93710.97831.01670.9947
AQI 0.88030.76280.85360.73040.66320.78990.62780.75870.83020.8572
SGI 1.04010.94280.86080.77610.6980.76660.81650.87650.97361.0014
DEPI 0.92030.79630.75830.79510.84671.11621.17781.43281.48481.3648
SGAI 0.93151.01251.11210.89310.8720.72140.57680.9750.96091.0715
LVGI 1.01011.03381.00121.00591.03910.99561.04521.00720.96470.9477
TATA -0.0074-0.0791-0.0728-0.1418-0.1847-0.097-0.1113-0.0846-0.0784-0.0893
M-score -2.60-3.32-3.21-3.51-3.77-2.82-3.06-3.02-2.84-2.82
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