Switch to:
Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-2.82 (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 -2.82 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: -2.82

-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 * 1.0961+0.528 * 0.9947+0.404 * 0.8572+0.892 * 1.0014+0.115 * 1.1207
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.88+4.679 * -0.0893-0.327 * 0.9477
=-2.82

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $125.6 Mil.
Revenue was 186.903 + 162.616 + 154.641 + 162.057 = $666.2 Mil.
Gross Profit was 52.751 + 45.161 + 42.239 + 45.145 = $185.3 Mil.
Total Current Assets was $275.8 Mil.
Total Assets was $419.2 Mil.
Property, Plant and Equipment(Net PPE) was $90.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.2 Mil.
Selling, General & Admin. Expense(SGA) was $106.2 Mil.
Total Current Liabilities was $130.7 Mil.
Long-Term Debt was $106.9 Mil.
Net Income was 11.571 + 7.239 + 6.084 + 7.367 = $32.3 Mil.
Non Operating Income was 0.559 + -0.038 + -2.055 + 0.243 = $-1.3 Mil.
Cash Flow from Operations was 16.662 + 1.132 + 37.672 + 15.501 = $71.0 Mil.
Accounts Receivable was $114.5 Mil.
Revenue was 165.289 + 162.825 + 166.811 + 170.338 = $665.3 Mil.
Gross Profit was 45.946 + 43.648 + 44.901 + 49.55 = $184.0 Mil.
Total Current Assets was $246.4 Mil.
Total Assets was $391.5 Mil.
Property, Plant and Equipment(Net PPE) was $86.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.2 Mil.
Selling, General & Admin. Expense(SGA) was $120.5 Mil.
Total Current Liabilities was $127.1 Mil.
Long-Term Debt was $107.0 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)
=(125.638 / 666.217) / (114.456 / 665.263)
=0.1885842 / 0.17204624
=1.0961

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)
=(184.045 / 665.263) / (185.296 / 666.217)
=0.27664999 / 0.2781316
=0.9947

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 - (275.782 + 89.991) / 419.199) / (1 - (246.357 + 86.93) / 391.498)
=0.12744782 / 0.14868786
=0.8572

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
=666.217 / 665.263
=1.0014

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))
=(20.191 / (20.191 + 86.93)) / (18.196 / (18.196 + 89.991))
=0.18848778 / 0.16819026
=1.1207

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)
=(106.166 / 666.217) / (120.471 / 665.263)
=0.15935649 / 0.18108778
=0.88

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)
=((106.914 + 130.692) / 419.199) / ((107.014 + 127.132) / 391.498)
=0.56680956 / 0.59807713
=0.9477

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
=(32.261 - -1.291 - 70.967) / 419.199
=-0.0893

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 -2.82 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

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.83910.51790.51881.14350.75461.09391.01470.92541.0181.0961
GMI 0.99631.14431.29421.0031.08831.08731.08461.05281.01670.9947
AQI 0.88030.76280.85360.7570.66320.78990.62780.75870.83020.8572
SGI 1.12981.25461.42960.89711.00021.01690.99090.97610.97361.0014
DEPI 1.18341.10041.11631.13140.96041.24321.28531.22131.24711.1207
SGAI 0.80930.71280.63081.06971.11181.18211.23710.91460.87580.88
LVGI 1.01011.03381.00121.00591.03910.99561.04521.00720.96470.9477
TATA -0.0214-0.0787-0.0728-0.1419-0.1847-0.097-0.1113-0.0846-0.0784-0.0893
M-score -2.61-3.03-2.71-3.20-3.70-2.87-3.12-3.00-2.85-2.82
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