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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-4.07 (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.

Stanley Furniture Co Inc has a M-score of -4.07 suggests that the company is not a manipulator.

STLY' s 10-Year Beneish M-Score Range
Min: -5.63   Max: 3.09
Current: -4.07

-5.63
3.09

During the past 13 years, the highest Beneish M-Score of Stanley Furniture Co Inc was 3.09. The lowest was -5.63. And the median was -2.66.


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 Stanley Furniture Co 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 * 1.0749+0.528 * -2.2764+0.404 * 4.512+0.892 * 0.971+0.115 * 0.9121
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0318+4.679 * -0.2764-0.327 * 1.0538
=-4.07

* 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 $5.85 Mil.
Revenue was 16.02 + 13.928 + 24.038 + 21.891 = $75.88 Mil.
Gross Profit was 2.778 + 2.916 + -12.026 + 1.393 = $-4.94 Mil.
Total Current Assets was $39.17 Mil.
Total Assets was $59.71 Mil.
Property, Plant and Equipment(Net PPE) was $1.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.53 Mil.
Selling, General & Admin. Expense(SGA) was $18.13 Mil.
Total Current Liabilities was $9.69 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -4.158 + -2.264 + -19.06 + -4.41 = $-29.89 Mil.
Non Operating Income was -2.51 + 0.024 + -0.019 + 0.331 = $-2.17 Mil.
Cash Flow from Operations was -1.554 + -1.251 + -6.285 + -2.126 = $-11.22 Mil.
Accounts Receivable was $5.61 Mil.
Revenue was 13.265 + 14.661 + 24.166 + 26.052 = $78.14 Mil.
Gross Profit was 2.553 + 3.461 + 2.18 + 3.385 = $11.58 Mil.
Total Current Assets was $86.98 Mil.
Total Assets was $95.49 Mil.
Property, Plant and Equipment(Net PPE) was $1.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.46 Mil.
Selling, General & Admin. Expense(SGA) was $18.10 Mil.
Total Current Liabilities was $14.71 Mil.
Long-Term Debt was $0.00 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)
=(5.853 / 75.877) / (5.608 / 78.144)
=0.077138 / 0.07176495
=1.0749

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)
=(2.916 / 78.144) / (2.778 / 75.877)
=0.14817516 / -0.06509219
=-2.2764

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 - (39.172 + 1.99) / 59.707) / (1 - (86.977 + 1.935) / 95.485)
=0.3106001 / 0.06883804
=4.512

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
=75.877 / 78.144
=0.971

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))
=(0.461 / (0.461 + 1.935)) / (0.532 / (0.532 + 1.99))
=0.19240401 / 0.2109437
=0.9121

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)
=(18.132 / 75.877) / (18.098 / 78.144)
=0.23896569 / 0.23159808
=1.0318

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)
=((0 + 9.693) / 59.707) / ((0 + 14.71) / 95.485)
=0.16234277 / 0.15405561
=1.0538

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
=(-29.892 - -2.174 - -11.216) / 59.707
=-0.2764

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.

Stanley Furniture Co Inc has a M-score of -4.07 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.

Stanley Furniture Co Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.940.9470.85591.07560.98730.7571.35751.03840.94131.0082
GMI 1.011.16111.27181.152713.1472-0.0931-0.98620.96270.57531.0858
AQI 1.00090.68750.9311.04451.10160.07951.22235.41792.06494.512
SGI 1.0910.92180.91970.80090.70830.85390.76380.94190.59411.0352
DEPI 0.9820.9470.62070.85561.2460.43294.3371.0460.42440.9121
SGAI 0.99081.03271.02111.14981.03310.90581.2221.00821.49870.8832
LVGI 0.91431.08021.43780.93821.03890.6710.93980.65981.14371.0538
TATA -0.0518-0.143-0.122-0.1588-0.1334-0.4069-0.0224-0.3107-0.0908-0.2764
M-score -2.66-3.35-3.33-3.253.09-5.63-3.06-2.07-3.31-2.28

Stanley Furniture Co Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.07181.03841.18851.27611.30510.70541.39771.28890.54521.0749
GMI 0.21660.96271.11931.19391.05320.83540.9457-1.8175-1.7981-2.2764
AQI 2.05925.41798.50282.45142.34492.06491.42821.15731.01944.512
SGI 0.92680.94190.93310.95770.88420.79280.75620.75690.82850.971
DEPI 2.16291.0460.99840.98452.34840.42442.67730.13240.13780.9121
SGAI 1.01961.00821.06291.08581.13791.24881.32971.3671.28691.0318
LVGI 0.6220.65980.55390.96980.92571.14371.3331.40020.96521.0538
TATA -0.3289-0.3107-0.29790.0649-0.0196-0.0908-0.1793-0.4171-0.3274-0.2764
M-score -3.75-2.07-0.53-1.28-1.67-3.17-3.00-6.10-6.19-4.07
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