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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-3.24 (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 -3.24 suggests that the company is not a manipulator.

SRI' s 10-Year Beneish M-Score Range
Min: -5.18   Max: -1.7
Current: -3.24

-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 -2.68.


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 * 0.6345+0.528 * 1.0665+0.404 * 0.7628+0.892 * 1.024+0.115 * 0.9512
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9623+4.679 * -0.0791-0.327 * 1.0338
=-3.24

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $102.9 Mil.
Revenue was 162.099 + 236.389 + 235.824 + 233.511 = $867.8 Mil.
Gross Profit was 48.285 + 54.789 + 53.553 + 53.519 = $210.1 Mil.
Total Current Assets was $384.7 Mil.
Total Assets was $583.6 Mil.
Property, Plant and Equipment(Net PPE) was $89.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.3 Mil.
Selling, General & Admin. Expense(SGA) was $178.9 Mil.
Total Current Liabilities was $167.7 Mil.
Long-Term Debt was $182.9 Mil.
Net Income was -21.892 + 1.468 + 0.204 + 5.047 = $-15.2 Mil.
Non Operating Income was -0.186 + -1.708 + -0.842 + 0.368 = $-2.4 Mil.
Cash Flow from Operations was 9.132 + -16.191 + 21.24 + 19.201 = $33.4 Mil.
Accounts Receivable was $158.4 Mil.
Revenue was 169.833 + 235.71 + 222.725 + 219.256 = $847.5 Mil.
Gross Profit was 54.303 + 58.729 + 54.609 + 51.238 = $218.9 Mil.
Total Current Assets was $335.5 Mil.
Total Assets was $594.4 Mil.
Property, Plant and Equipment(Net PPE) was $112.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.2 Mil.
Selling, General & Admin. Expense(SGA) was $181.6 Mil.
Total Current Liabilities was $157.0 Mil.
Long-Term Debt was $188.4 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)
=(102.892 / 867.823) / (158.371 / 847.524)
=0.11856335 / 0.18686314
=0.6345

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)
=(54.789 / 847.524) / (48.285 / 867.823)
=0.25825699 / 0.24215307
=1.0665

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 - (384.694 + 89.06) / 583.608) / (1 - (335.499 + 112.236) / 594.406)
=0.18823251 / 0.24675222
=0.7628

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
=867.823 / 847.524
=1.024

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))
=(32.194 / (32.194 + 112.236)) / (27.257 / (27.257 + 89.06))
=0.22290383 / 0.23433376
=0.9512

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)
=(178.912 / 867.823) / (181.572 / 847.524)
=0.20616186 / 0.21423818
=0.9623

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)
=((182.889 + 167.694) / 583.608) / ((188.429 + 156.962) / 594.406)
=0.60071658 / 0.58106917
=1.0338

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
=(-15.173 - -2.368 - 33.382) / 583.608
=-0.0791

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 -3.24 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.14551.020.96630.71080.79611.02381.0321.01390.98750.6345
GMI 1.07270.98790.9050.80120.86430.83120.87430.95140.96931.0665
AQI 1.76511.59991.77831.05290.96490.93230.88170.85070.88030.7628
SGI 1.2271.24721.21911.22621.09270.96480.95560.93220.96011.024
DEPI 1.40981.19311.08780.67870.69070.7220.87440.93181.01270.9512
SGAI 0.97111.10481.22961.24521.17351.10221.01730.98820.97720.9623
LVGI 0.80460.84640.75890.88950.9810.96951.00691.01941.01011.0338
TATA -0.0648-0.1096-0.1448-0.1203-0.1052-0.0809-0.0648-0.0469-0.0218-0.0791
M-score -1.98-2.46-2.68-3.23-3.22-3.02-2.93-2.85-2.69-3.24
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