Switch to:
Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-3.13 (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 -3.13 suggests that the company is not a manipulator.

SRI' s Beneish M-Score Range Over the Past 10 Years
Min: -5.18   Max: -1.7
Current: -3.13

-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 -2.69.


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 * 1.0147+0.528 * 1.0846+0.404 * 0.6278+0.892 * 0.9909+0.115 * 1.2186
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2371+4.679 * -0.1113-0.327 * 1.0452
=-3.13

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $112.6 Mil.
Revenue was 162.057 + 165.289 + 162.825 + 166.811 = $657.0 Mil.
Gross Profit was 45.145 + 45.946 + 43.648 + 44.901 = $179.6 Mil.
Total Current Assets was $235.5 Mil.
Total Assets was $365.9 Mil.
Property, Plant and Equipment(Net PPE) was $83.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.3 Mil.
Selling, General & Admin. Expense(SGA) was $115.6 Mil.
Total Current Liabilities was $116.3 Mil.
Long-Term Debt was $105.0 Mil.
Net Income was 7.367 + 6.979 + 2.344 + -26.554 = $-9.9 Mil.
Non Operating Income was 0.243 + 0.19 + 0.402 + -7.756 = $-6.9 Mil.
Cash Flow from Operations was 15.501 + 5.911 + -4.279 + 20.661 = $37.8 Mil.
Accounts Receivable was $112.0 Mil.
Revenue was 170.338 + 162.099 + 161.331 + 169.235 = $663.0 Mil.
Gross Profit was 49.55 + 48.285 + 48.138 + 50.643 = $196.6 Mil.
Total Current Assets was $321.8 Mil.
Total Assets was $511.7 Mil.
Property, Plant and Equipment(Net PPE) was $85.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.3 Mil.
Selling, General & Admin. Expense(SGA) was $94.3 Mil.
Total Current Liabilities was $186.8 Mil.
Long-Term Debt was $109.4 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)
=(112.595 / 656.982) / (111.984 / 663.003)
=0.17138217 / 0.16890421
=1.0147

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)
=(45.946 / 663.003) / (45.145 / 656.982)
=0.29655371 / 0.27343215
=1.0846

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 - (235.538 + 83.258) / 365.866) / (1 - (321.842 + 85.02) / 511.736)
=0.12865366 / 0.2049377
=0.6278

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
=656.982 / 663.003
=0.9909

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))
=(32.347 / (32.347 + 85.02)) / (24.334 / (24.334 + 83.258))
=0.27560558 / 0.22616923
=1.2186

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)
=(115.598 / 656.982) / (94.301 / 663.003)
=0.17595307 / 0.14223314
=1.2371

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)
=((104.982 + 116.297) / 365.866) / ((109.352 + 186.78) / 511.736)
=0.60480886 / 0.57868119
=1.0452

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
=(-9.864 - -6.921 - 37.794) / 365.866
=-0.1113

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 -3.13 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 1.01271.01021.11410.76261.33370.94431.31330.71081.03031.0242
GMI 1.15480.98670.97211.04411.19310.80811.19490.80120.76651.0808
AQI 1.070.9390.95420.41451.43351.04261.65961.05290.82090.757
SGI 0.9851.05531.0261.03520.63131.33691.20491.22620.70271.0017
DEPI 0.97671.00370.79691.01871.16391.02911.52120.67870.66641.1117
SGAI 1.05260.97861.04640.98251.23740.85930.87261.24520.89481.002
LVGI 0.99260.9720.94621.20841.03410.97620.86780.88951.01941.0059
TATA -0.0501-0.079-0.0545-0.3319-0.1457-0.0328-0.0387-0.1114-0.0469-0.1419
M-score -2.62-2.81-2.65-4.50-2.94-2.43-1.70-3.19-3.16-3.17

Stoneridge Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.02381.1260.92281.30610.84170.88351.14350.75461.09391.0147
GMI 0.83120.81530.82590.78110.85850.9281.0031.08831.08731.0846
AQI 0.93230.88170.82090.88030.76280.85360.7570.66320.78990.6278
SGI 0.96480.87580.78460.72590.77190.83940.89711.00021.01690.9909
DEPI 0.7220.77480.66640.86570.81560.82721.11170.94371.19061.2186
SGAI 1.10221.07490.83810.80150.71510.64531.06971.11181.18211.2371
LVGI 0.96951.00691.01941.01011.03381.00121.00591.03910.99561.0452
TATA -0.0809-0.0644-0.0465-0.0214-0.0787-0.0728-0.1419-0.1847-0.097-0.1113
M-score -3.02-2.96-3.14-2.69-3.35-3.13-3.20-3.70-2.88-3.13
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK