Switch to:
Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-2.81 (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 -2.81 suggests that the company is not a manipulator.

SRI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.98   Max: -1.7
Current: -2.81

-4.98
-1.7

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.70. The lowest was -4.98. And the median was -2.76.


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 * 1.0524+0.528 * 0.9762+0.404 * 0.9985+0.892 * 1.032+0.115 * 0.9192
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9024+4.679 * -0.0938-0.327 * 0.8866
=-2.81

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $122.3 Mil.
Revenue was 173.846 + 186.903 + 162.616 + 154.641 = $678.0 Mil.
Gross Profit was 49.748 + 52.751 + 45.161 + 42.239 = $189.9 Mil.
Total Current Assets was $269.7 Mil.
Total Assets was $413.6 Mil.
Property, Plant and Equipment(Net PPE) was $90.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.8 Mil.
Selling, General & Admin. Expense(SGA) was $107.7 Mil.
Total Current Liabilities was $126.5 Mil.
Long-Term Debt was $95.3 Mil.
Net Income was 10.284 + 11.571 + 7.239 + 6.084 = $35.2 Mil.
Non Operating Income was 0.804 + 0.559 + -0.038 + -2.055 = $-0.7 Mil.
Cash Flow from Operations was 19.223 + 16.662 + 1.132 + 37.672 = $74.7 Mil.
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 $15.6 Mil.
Selling, General & Admin. Expense(SGA) was $115.6 Mil.
Total Current Liabilities was $116.3 Mil.
Long-Term Debt was $105.0 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)
=(122.286 / 678.006) / (112.595 / 656.982)
=0.18036124 / 0.17138217
=1.0524

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)
=(179.64 / 656.982) / (189.899 / 678.006)
=0.27343215 / 0.28008454
=0.9762

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 - (269.723 + 90.746) / 413.602) / (1 - (235.538 + 83.258) / 365.866)
=0.12846408 / 0.12865366
=0.9985

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
=678.006 / 656.982
=1.032

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))
=(15.625 / (15.625 + 83.258)) / (18.838 / (18.838 + 90.746))
=0.15801503 / 0.17190466
=0.9192

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)
=(107.652 / 678.006) / (115.598 / 656.982)
=0.15877736 / 0.17595307
=0.9024

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)
=((95.264 + 126.529) / 413.602) / ((104.982 + 116.297) / 365.866)
=0.53624741 / 0.60480886
=0.8866

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
=(35.178 - -0.73 - 74.689) / 413.602
=-0.0938

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 -2.81 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 local exchange's currency.

Stoneridge Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.01021.11410.76261.33370.94431.31331.08920.67241.02420.9254
GMI 0.98670.97211.04411.19310.80811.19490.6340.96861.08081.0528
AQI 0.9390.95420.41451.43351.04261.65961.05290.82090.7570.7587
SGI 1.05531.0261.03520.63131.33691.20490.80021.07681.00170.9761
DEPI 1.00370.79691.01871.16391.02911.52120.57320.90961.13141.2213
SGAI 0.97861.04640.98251.23740.85930.87261.23130.90491.0020.9146
LVGI 0.9720.94621.20841.03410.97620.86780.88951.01941.00591.0072
TATA -0.0764-0.0512-0.2926-0.1457-0.0328-0.0387-0.1119-0.0469-0.1419-0.0846
M-score -2.80-2.64-4.31-2.94-2.43-1.70-3.32-3.02-3.16-3.00

Stoneridge Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.51790.51881.14350.75461.09391.01470.92541.0181.09611.0524
GMI 1.14431.29421.0031.08831.08731.08461.05281.01670.99470.9762
AQI 0.76280.85360.7570.66320.78990.62780.75870.83020.85720.9985
SGI 1.25461.42960.89711.00021.01690.99090.97610.97361.00141.032
DEPI 1.10041.11631.13140.96041.24321.48691.22131.24711.12070.9192
SGAI 0.71280.63081.06971.11181.18211.23710.91460.87580.880.9024
LVGI 1.03381.00121.00591.03910.99561.04521.00720.96470.94770.8866
TATA -0.0787-0.0728-0.1419-0.1847-0.097-0.1113-0.0846-0.0784-0.0893-0.0938
M-score -3.03-2.71-3.20-3.70-2.87-3.10-3.00-2.85-2.82-2.81
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)
FEEDBACK