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Stoneridge Inc (NYSE:SRI)
Beneish M-Score
-2.84 (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 -2.84 suggests that the company is not a manipulator.

SRI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.97   Max: -1.69
Current: -2.84

-4.97
-1.69

During the past 13 years, the highest Beneish M-Score of Stoneridge Inc was -1.69. The lowest was -4.97. And the median was -2.75.


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 * 1.018+0.528 * 1.0167+0.404 * 0.8302+0.892 * 0.9736+0.115 * 1.4848
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9609+4.679 * -0.0784-0.327 * 0.9647
=-2.84

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $112.6 Mil.
Revenue was 162.616 + 154.641 + 162.057 + 165.289 = $644.6 Mil.
Gross Profit was 45.161 + 42.239 + 45.145 + 45.946 = $178.5 Mil.
Total Current Assets was $255.3 Mil.
Total Assets was $393.7 Mil.
Property, Plant and Equipment(Net PPE) was $88.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.1 Mil.
Selling, General & Admin. Expense(SGA) was $105.4 Mil.
Total Current Liabilities was $124.9 Mil.
Long-Term Debt was $104.2 Mil.
Net Income was 7.239 + 6.084 + 7.367 + 6.979 = $27.7 Mil.
Non Operating Income was -0.038 + -2.055 + 0.243 + 0.19 = $-1.7 Mil.
Cash Flow from Operations was 1.132 + 37.672 + 15.501 + 5.911 = $60.2 Mil.
Accounts Receivable was $113.7 Mil.
Revenue was 162.825 + 166.811 + 170.338 + 162.099 = $662.1 Mil.
Gross Profit was 43.648 + 44.901 + 49.55 + 48.285 = $186.4 Mil.
Total Current Assets was $236.4 Mil.
Total Assets was $377.3 Mil.
Property, Plant and Equipment(Net PPE) was $83.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $28.1 Mil.
Selling, General & Admin. Expense(SGA) was $112.7 Mil.
Total Current Liabilities was $120.1 Mil.
Long-Term Debt was $107.5 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)
=(112.649 / 644.603) / (113.655 / 662.073)
=0.17475718 / 0.17166536
=1.018

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)
=(42.239 / 662.073) / (45.161 / 644.603)
=0.28151578 / 0.27690067
=1.0167

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 - (255.307 + 88.563) / 393.726) / (1 - (236.368 + 83.405) / 377.321)
=0.12662613 / 0.15251735
=0.8302

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
=644.603 / 662.073
=0.9736

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))
=(28.118 / (28.118 + 83.405)) / (18.115 / (18.115 + 88.563))
=0.25212736 / 0.16981008
=1.4848

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)
=(105.401 / 644.603) / (112.668 / 662.073)
=0.16351305 / 0.17017459
=0.9609

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)
=((104.206 + 124.887) / 393.726) / ((107.471 + 120.103) / 377.321)
=0.58185896 / 0.60313102
=0.9647

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
=(27.669 - -1.66 - 60.216) / 393.726
=-0.0784

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 -2.84 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 1.01021.11410.76261.33370.94431.31330.71080.93581.12760.9254
GMI 0.98670.97211.04411.19310.81211.18890.80121.00380.82531.0528
AQI 0.9390.95420.41451.44171.03671.66951.04670.85070.73040.7587
SGI 1.05531.0261.03520.63131.33691.20491.22621.00990.69690.9761
DEPI 1.00370.79691.01871.11741.0721.51970.67930.93180.79511.4328
SGAI 0.97861.04640.98661.190.88980.87261.24520.94170.95210.9146
LVGI 0.9720.94621.20841.03210.97810.86670.89071.01941.00591.0072
TATA -0.0764-0.0512-0.4002-0.0253-0.0347-0.0386-0.1114-0.0475-0.1419-0.0846
M-score -2.80-2.64-4.82-2.37-2.44-1.69-3.19-2.81-3.52-2.97

Stoneridge Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.93580.91150.68910.86161.01261.08121.45111.23141.03051.018
GMI 1.00381.02211.00850.94810.88810.83170.87530.93710.97831.0167
AQI 0.85070.88030.76280.85360.73040.66320.78990.62780.75870.8302
SGI 1.00991.04010.94280.86080.77610.6980.76660.81650.87650.9736
DEPI 0.93180.92030.79630.75830.79510.84671.11621.17781.43281.4848
SGAI 0.94170.93151.01251.11210.89310.8720.72140.57680.9750.9609
LVGI 1.01941.01011.03381.00121.00591.03910.99561.04521.00720.9647
TATA -0.0319-0.0074-0.0791-0.0728-0.1418-0.1847-0.097-0.1113-0.0846-0.0784
M-score -2.74-2.60-3.32-3.21-3.51-3.77-2.82-3.06-3.02-2.84
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