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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

SRI' s 10-Year Beneish M-Score Range
Min: -5.18   Max: -1.7
Current: -2.65

-5.18
-1.7

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.70. The lowest was -5.18. And the median was -2.65.


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 * 0.9115+0.528 * 1.0221+0.404 * 0.8803+0.892 * 1.0401+0.115 * 1.0127
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9315+4.679 * -0.0215-0.327 * 1.0101
=-2.65

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $150.6 Mil.
Revenue was 236.389 + 235.824 + 233.511 + 242.785 = $948.5 Mil.
Gross Profit was 54.789 + 53.553 + 53.519 + 60.22 = $222.1 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 $28.0 Mil.
Selling, General & Admin. Expense(SGA) was $185.1 Mil.
Total Current Liabilities was $171.7 Mil.
Long-Term Debt was $184.1 Mil.
Net Income was 1.468 + 0.204 + 5.047 + 5.757 = $12.5 Mil.
Non Operating Income was -1.708 + -0.842 + 0.368 + -0.266 = $-2.4 Mil.
Cash Flow from Operations was -16.191 + 21.24 + 19.201 + 3.837 = $28.1 Mil.
Accounts Receivable was $158.9 Mil.
Revenue was 235.71 + 222.725 + 219.256 + 234.265 = $912.0 Mil.
Gross Profit was 58.729 + 54.609 + 51.238 + 53.659 = $218.2 Mil.
Total Current Assets was $343.5 Mil.
Total Assets was $624.9 Mil.
Property, Plant and Equipment(Net PPE) was $118.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.6 Mil.
Selling, General & Admin. Expense(SGA) was $191.1 Mil.
Total Current Liabilities was $165.5 Mil.
Long-Term Debt was $193.5 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)
=(150.599 / 948.509) / (158.852 / 911.956)
=0.15877446 / 0.17418823
=0.9115

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)
=(53.553 / 911.956) / (54.789 / 948.509)
=0.23930431 / 0.23413695
=1.0221

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 - (362.398 + 109.602) / 612.956) / (1 - (343.497 + 118.137) / 624.872)
=0.22996104 / 0.2612343
=0.8803

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
=948.509 / 911.956
=1.0401

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))
=(30.648 / (30.648 + 118.137)) / (27.985 / (27.985 + 109.602))
=0.20598851 / 0.20339858
=1.0127

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)
=(185.101 / 948.509) / (191.063 / 911.956)
=0.19514944 / 0.20950901
=0.9315

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)
=((184.077 + 171.709) / 612.956) / ((193.531 + 165.538) / 624.872)
=0.58044297 / 0.57462808
=1.0101

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
=(12.476 - -2.448 - 28.087) / 612.956
=-0.0215

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 -2.65 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.00411.01271.01021.11410.76261.33370.94431.31330.71080.9358
GMI 1.00661.15480.98670.97211.04411.19310.80811.19490.80121.0038
AQI 0.54621.070.9390.95420.41451.43351.04261.65961.05290.8507
SGI 1.12380.9851.05531.0261.03520.63131.33691.20491.22621.0099
DEPI 0.93340.97671.00370.79691.01871.16391.02911.52120.67870.9318
SGAI 1.05981.05260.97861.04640.98251.23740.85930.87261.24520.9417
LVGI 1.22620.99260.9720.94621.20841.03410.97620.86780.88951.0194
TATA 0.0884-0.0501-0.079-0.0545-0.3319-0.1457-0.0328-0.0387-0.1114-0.0475
M-score -2.22-2.62-2.81-2.65-4.50-2.94-2.43-1.70-3.19-2.81

Stoneridge Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.31331.14551.020.96630.71080.79610.94270.95150.93580.9115
GMI 1.19491.07270.98790.9050.80120.86430.8790.92361.00381.0221
AQI 1.65961.76511.59991.77831.05290.96490.93230.88170.85070.8803
SGI 1.20491.2271.24721.21911.22621.09271.04781.03651.00991.0401
DEPI 1.52121.40981.19311.08780.67870.69070.78870.87440.93181.0127
SGAI 0.87260.97111.10481.22961.24521.17351.04750.96840.94170.9315
LVGI 0.86780.80460.84640.75890.88950.9810.96951.00691.01941.0101
TATA -0.0387-0.0648-0.1096-0.1448-0.1203-0.1052-0.0806-0.0644-0.0466-0.0215
M-score -1.70-1.98-2.46-2.68-3.23-3.22-2.98-2.89-2.81-2.65
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