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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-3.17 (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 -3.17 suggests that the company is not a manipulator.

SRI' s 10-Year Beneish M-Score Range
Min: -4.5   Max: -1.7
Current: -3.17

-4.5
-1.7

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.70. The lowest was -4.50. And the median was -2.82.


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 * 1.0269+0.528 * 1.0794+0.404 * 0.757+0.892 * 0.9991+0.115 * 1.1117
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0034+4.679 * -0.1418-0.327 * 1.0059
=-3.17

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $105.1 Mil.
Revenue was 166.811 + 170.338 + 162.099 + 236.389 = $735.6 Mil.
Gross Profit was 44.901 + 49.55 + 48.285 + 54.789 = $197.5 Mil.
Total Current Assets was $245.5 Mil.
Total Assets was $398.8 Mil.
Property, Plant and Equipment(Net PPE) was $85.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.1 Mil.
Selling, General & Admin. Expense(SGA) was $129.1 Mil.
Total Current Liabilities was $120.3 Mil.
Long-Term Debt was $110.7 Mil.
Net Income was -26.554 + -0.13 + -21.892 + 1.468 = $-47.1 Mil.
Non Operating Income was -7.756 + -0.738 + -0.186 + -1.708 = $-10.4 Mil.
Cash Flow from Operations was 20.661 + 6.213 + 9.132 + -16.191 = $19.8 Mil.
Accounts Receivable was $102.4 Mil.
Revenue was 169.235 + 161.556 + 169.833 + 235.71 = $736.3 Mil.
Gross Profit was 50.643 + 49.729 + 54.303 + 58.729 = $213.4 Mil.
Total Current Assets was $369.6 Mil.
Total Assets was $588.3 Mil.
Property, Plant and Equipment(Net PPE) was $86.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.2 Mil.
Selling, General & Admin. Expense(SGA) was $128.8 Mil.
Total Current Liabilities was $153.7 Mil.
Long-Term Debt was $185.0 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)
=(105.102 / 735.637) / (102.449 / 736.334)
=0.1428721 / 0.13913387
=1.0269

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)
=(49.55 / 736.334) / (44.901 / 735.637)
=0.28981957 / 0.26850879
=1.0794

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 - (245.511 + 85.311) / 398.751) / (1 - (369.602 + 86.323) / 588.322)
=0.17035443 / 0.22504173
=0.757

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
=735.637 / 736.334
=0.9991

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))
=(35.225 / (35.225 + 86.323)) / (30.081 / (30.081 + 85.311))
=0.28980321 / 0.26068532
=1.1117

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)
=(129.147 / 735.637) / (128.828 / 736.334)
=0.17555805 / 0.17495865
=1.0034

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)
=((110.651 + 120.314) / 398.751) / ((185.045 + 153.722) / 588.322)
=0.57922112 / 0.57581902
=1.0059

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
=(-47.108 - -10.388 - 19.815) / 398.751
=-0.1418

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 -3.17 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96630.71080.79611.02381.1260.92281.17310.7550.79371.0269
GMI 0.9050.80120.86430.83120.81530.82590.8420.92580.99931.0794
AQI 1.77831.05290.96490.93230.88170.82090.88030.76280.85360.757
SGI 1.21911.22621.09270.96480.87580.78460.80820.86050.93450.9991
DEPI 1.08780.67870.69070.7220.77480.66640.86570.81560.82721.1117
SGAI 1.22961.24521.17351.10221.07490.83810.82640.81460.80981.0034
LVGI 0.75890.88950.9810.96951.00691.01941.01011.03381.00121.0059
TATA -0.1448-0.1203-0.1052-0.0809-0.0644-0.0465-0.0214-0.0787-0.0727-0.1418
M-score -2.68-3.23-3.22-3.02-2.96-3.14-2.71-3.33-3.12-3.17
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