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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-3.51 (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 -3.51 suggests that the company is not a manipulator.

SRI' s 10-Year Beneish M-Score Range
Min: -4.5   Max: -1.7
Current: -3.51

-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 * 1.0126+0.528 * 0.8881+0.404 * 0.7304+0.892 * 0.7761+0.115 * 0.7951
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8931+4.679 * -0.1418-0.327 * 1.0059
=-3.51

* 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 $133.7 Mil.
Revenue was 235.824 + 233.511 + 242.785 + 235.71 = $947.8 Mil.
Gross Profit was 53.553 + 53.519 + 60.22 + 58.729 = $226.0 Mil.
Total Current Assets was $340.2 Mil.
Total Assets was $588.3 Mil.
Property, Plant and Equipment(Net PPE) was $110.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.0 Mil.
Selling, General & Admin. Expense(SGA) was $186.3 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) / (133.736 / 947.83)
=0.1428721 / 0.14109703
=1.0126

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 / 947.83) / (44.901 / 735.637)
=0.23846154 / 0.26850879
=0.8881

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 - (340.236 + 110.872) / 588.322)
=0.17035443 / 0.23322942
=0.7304

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 / 947.83
=0.7761

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))
=(28.989 / (28.989 + 110.872)) / (30.081 / (30.081 + 85.311))
=0.20727008 / 0.26068532
=0.7951

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) / (186.317 / 947.83)
=0.17555805 / 0.19657217
=0.8931

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 -3.51 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 1.01271.01021.11410.76261.33370.94431.31330.71080.93581.1276
GMI 1.15480.98670.97211.04411.19310.81211.18890.80121.00380.8253
AQI 1.070.9390.95420.41451.44171.03671.66951.04670.85070.7304
SGI 0.9851.05531.0261.03520.63131.33691.20491.22621.00990.6969
DEPI 0.97671.00370.79691.01871.11741.0721.51970.67930.93180.7951
SGAI 1.05260.97861.04640.98251.1950.88980.87261.24520.94170.9521
LVGI 0.99260.9720.94621.20841.03210.97810.86670.89071.01941.0059
TATA -0.0501-0.079-0.0545-0.3319-0.1085-0.0347-0.0386-0.1114-0.0475-0.1419
M-score -2.62-2.81-2.65-4.50-2.76-2.44-1.69-3.19-2.81-3.52

Stoneridge Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.96630.71080.79610.94270.95150.93580.91150.68910.86161.0126
GMI 0.90440.80120.86430.8790.92361.00381.02211.00850.94810.8881
AQI 1.77831.04670.96490.93230.88170.85070.88030.76280.85360.7304
SGI 1.21911.22621.09271.04781.03651.00991.04010.94280.86080.7761
DEPI 1.04790.67930.72420.78870.87440.93180.92030.79630.75830.7951
SGAI 1.22961.24521.17351.04750.96840.94170.93151.01251.11210.8931
LVGI 0.75890.89070.9810.96951.00691.01941.01011.03381.00121.0059
TATA -0.1363-0.1114-0.0968-0.0806-0.0644-0.0466-0.0215-0.0791-0.0728-0.1418
M-score -2.64-3.19-3.18-2.98-2.89-2.81-2.66-3.32-3.21-3.51
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