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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

SRI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31   Max: -1.7
Current: -3

-4.31
-1.7

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.70. The lowest was -4.31. And the median was -2.84.


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 * 0.9254+0.528 * 1.0528+0.404 * 0.7587+0.892 * 0.9761+0.115 * 1.2213
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9146+4.679 * -0.0846-0.327 * 1.0072
=-3.00

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $94.9 Mil.
Revenue was 154.641 + 162.057 + 165.289 + 162.825 = $644.8 Mil.
Gross Profit was 42.239 + 45.145 + 45.946 + 43.648 = $177.0 Mil.
Total Current Assets was $231.9 Mil.
Total Assets was $364.3 Mil.
Property, Plant and Equipment(Net PPE) was $85.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.0 Mil.
Selling, General & Admin. Expense(SGA) was $110.4 Mil.
Total Current Liabilities was $108.1 Mil.
Long-Term Debt was $104.5 Mil.
Net Income was 6.084 + 7.367 + 6.979 + 2.344 = $22.8 Mil.
Non Operating Income was -2.055 + 0.243 + 0.19 + 0.402 = $-1.2 Mil.
Cash Flow from Operations was 37.672 + 15.501 + 5.911 + -4.279 = $54.8 Mil.
Accounts Receivable was $105.1 Mil.
Revenue was 166.811 + 170.338 + 162.099 + 161.331 = $660.6 Mil.
Gross Profit was 44.901 + 49.55 + 48.285 + 48.138 = $190.9 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 $24.4 Mil.
Selling, General & Admin. Expense(SGA) was $123.6 Mil.
Total Current Liabilities was $120.3 Mil.
Long-Term Debt was $110.7 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)
=(94.937 / 644.812) / (105.102 / 660.579)
=0.14723206 / 0.15910588
=0.9254

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)
=(45.145 / 660.579) / (42.239 / 644.812)
=0.28894954 / 0.2744645
=1.0528

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 - (231.909 + 85.264) / 364.252) / (1 - (245.511 + 85.311) / 398.751)
=0.12924843 / 0.17035443
=0.7587

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
=644.812 / 660.579
=0.9761

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))
=(24.372 / (24.372 + 85.311)) / (18.964 / (18.964 + 85.264))
=0.22220399 / 0.18194727
=1.2213

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)
=(110.371 / 644.812) / (123.631 / 660.579)
=0.17116772 / 0.18715551
=0.9146

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)
=((104.458 + 108.05) / 364.252) / ((110.651 + 120.314) / 398.751)
=0.58340929 / 0.57922112
=1.0072

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
=(22.774 - -1.22 - 54.805) / 364.252
=-0.0846

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 -3.00 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.91760.60220.83910.51790.51881.14350.75461.09391.01470.9254
GMI 0.58461.04370.99631.14431.29421.0031.08831.08731.08461.0528
AQI 0.88170.82090.88030.76280.85360.7570.66320.78990.62780.7587
SGI 0.51431.20221.12981.25461.42960.89711.00021.01690.99090.9761
DEPI 0.67350.90961.18341.10041.11631.13140.96041.24321.28531.2213
SGAI 1.09980.84760.80930.71280.63081.06971.11181.18211.23710.9146
LVGI 1.00691.01941.01011.03381.00121.00591.03910.99561.04521.0072
TATA -0.0649-0.0465-0.0214-0.0787-0.0728-0.1419-0.1847-0.097-0.1113-0.0846
M-score -2.70-2.92-2.61-3.03-2.71-3.20-3.70-2.87-3.12-3.00
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