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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-3.78 (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 -3.78 suggests that the company is not a manipulator.

SRI' s 10-Year Beneish M-Score Range
Min: -5.18   Max: -1.69
Current: -3.78

-5.18
-1.69

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.69. The lowest was -5.18. And the median was -2.71.


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 * 0.9956+0.528 * 0.8761+0.404 * 0.6632+0.892 * 0.758+0.115 * 0.8467
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8814+4.679 * -0.1847-0.327 * 1.0391
=-3.78

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $113.7 Mil.
Revenue was 162.825 + 166.811 + 170.338 + 162.099 = $662.1 Mil.
Gross Profit was 43.648 + 44.901 + 49.55 + 48.285 = $186.4 Mil.
Total Current Assets was $236.4 Mil.
Total Assets was $377.3 Mil.
Property, Plant and Equipment(Net PPE) was $83.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $28.1 Mil.
Selling, General & Admin. Expense(SGA) was $112.7 Mil.
Total Current Liabilities was $120.1 Mil.
Long-Term Debt was $107.5 Mil.
Net Income was 2.344 + -26.554 + -0.13 + -21.892 = $-46.2 Mil.
Non Operating Income was 0.402 + -7.756 + -0.738 + -0.186 = $-8.3 Mil.
Cash Flow from Operations was -4.279 + 20.661 + 6.213 + 9.132 = $31.7 Mil.
Accounts Receivable was $150.6 Mil.
Revenue was 161.331 + 235.824 + 233.511 + 242.785 = $873.5 Mil.
Gross Profit was 48.138 + 53.553 + 53.519 + 60.22 = $215.4 Mil.
Total Current Assets was $362.4 Mil.
Total Assets was $613.0 Mil.
Property, Plant and Equipment(Net PPE) was $109.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.7 Mil.
Selling, General & Admin. Expense(SGA) was $168.6 Mil.
Total Current Liabilities was $171.7 Mil.
Long-Term Debt was $184.1 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)
=(113.655 / 662.073) / (150.599 / 873.451)
=0.17166536 / 0.17241837
=0.9956

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)
=(44.901 / 873.451) / (43.648 / 662.073)
=0.24664234 / 0.28151578
=0.8761

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 - (236.368 + 83.405) / 377.321) / (1 - (362.398 + 109.602) / 612.956)
=0.15251735 / 0.22996104
=0.6632

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
=662.073 / 873.451
=0.758

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))
=(29.748 / (29.748 + 109.602)) / (28.118 / (28.118 + 83.405))
=0.21347686 / 0.25212736
=0.8467

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)
=(112.668 / 662.073) / (168.647 / 873.451)
=0.17017459 / 0.19308124
=0.8814

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)
=((107.471 + 120.103) / 377.321) / ((184.077 + 171.709) / 612.956)
=0.60313102 / 0.58044297
=1.0391

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
=(-46.232 - -8.278 - 31.727) / 377.321
=-0.1847

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 -3.78 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01271.01021.11410.76261.33370.94431.31330.71080.93581.1276
GMI 1.15480.98670.97211.04411.19310.81211.18890.80121.00380.8253
AQI 1.070.9390.95420.41451.44171.03671.66951.04670.85070.7304
SGI 0.9851.05531.0261.03520.63131.33691.20491.22621.00990.6969
DEPI 0.97671.00370.79691.01871.11741.0721.51970.67930.93180.7951
SGAI 1.05260.97861.04640.98251.1950.88980.87261.24520.94170.9521
LVGI 0.99260.9720.94621.20841.03210.97810.86670.89071.01941.0059
TATA -0.0501-0.079-0.0545-0.3319-0.1085-0.0347-0.0386-0.1114-0.0475-0.1419
M-score -2.62-2.81-2.65-4.50-2.76-2.44-1.69-3.19-2.81-3.52

Stoneridge Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.71080.79610.94270.95150.93580.98980.75440.95021.12760.9956
GMI 0.80120.86430.8790.92361.00380.97020.95140.88830.82530.8761
AQI 1.04670.96490.93230.88170.85070.88030.76280.85360.73040.6632
SGI 1.22621.09271.04781.03651.00990.95780.86130.78050.69690.758
DEPI 0.67930.72420.78870.87440.93180.92030.79630.75830.79510.8467
SGAI 1.24521.17351.04750.96840.94170.92161.00651.1130.86790.8814
LVGI 0.89070.9810.96951.00691.01941.01011.03381.00121.00591.0391
TATA -0.1114-0.0968-0.0806-0.0644-0.0466-0.0215-0.0792-0.0729-0.1419-0.1847
M-score -3.19-3.18-2.98-2.89-2.81-2.69-3.36-3.23-3.50-3.78
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