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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-5.27 (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 -5.27 suggests that the company is not a manipulator.

STLY' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 3.09
Current: -5.27

-10000000
3.09

During the past 13 years, the highest Beneish M-Score of Stanley Furniture Co Inc was 3.09. The lowest was -10000000.00. And the median was -2.61.


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 * 1.0274+0.528 * -1.6395+0.404 * 1.1573+0.892 * 0.9495+0.115 * 0.1257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1922+4.679 * -0.2513-0.327 * 1.4002
=-5.27

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $12.43 Mil.
Revenue was 24.038 + 21.891 + 22.744 + 23.982 = $92.66 Mil.
Gross Profit was -12.026 + 1.393 + 1.43 + 2.779 = $-6.42 Mil.
Total Current Assets was $56.82 Mil.
Total Assets was $69.98 Mil.
Property, Plant and Equipment(Net PPE) was $7.84 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.79 Mil.
Selling, General & Admin. Expense(SGA) was $21.71 Mil.
Total Current Liabilities was $11.82 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -19.06 + -4.41 + -4.544 + -2.47 = $-30.48 Mil.
Non Operating Income was -0.019 + 0.331 + 0.016 + 0.033 = $0.36 Mil.
Cash Flow from Operations was -6.285 + -2.126 + -3.694 + -1.157 = $-13.26 Mil.
Accounts Receivable was $12.74 Mil.
Revenue was 24.166 + 26.052 + 23.384 + 23.977 = $97.58 Mil.
Gross Profit was 2.18 + 3.385 + 2.182 + 3.345 = $11.09 Mil.
Total Current Assets was $73.83 Mil.
Total Assets was $102.05 Mil.
Property, Plant and Equipment(Net PPE) was $21.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.87 Mil.
Selling, General & Admin. Expense(SGA) was $19.18 Mil.
Total Current Liabilities was $12.31 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)
=(12.432 / 92.655) / (12.744 / 97.579)
=0.13417517 / 0.13060187
=1.0274

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)
=(1.393 / 97.579) / (-12.026 / 92.655)
=0.113672 / -0.06933247
=-1.6395

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 - (56.819 + 7.843) / 69.979) / (1 - (73.834 + 21.517) / 102.051)
=0.07597994 / 0.06565345
=1.1573

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
=92.655 / 97.579
=0.9495

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))
=(1.874 / (1.874 + 21.517)) / (13.792 / (13.792 + 7.843))
=0.08011628 / 0.63748556
=0.1257

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)
=(21.714 / 92.655) / (19.181 / 97.579)
=0.23435325 / 0.19656893
=1.1922

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 + 11.822) / 69.979) / ((0 + 12.313) / 102.051)
=0.1689364 / 0.12065536
=1.4002

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
=(-30.484 - 0.361 - -13.262) / 69.979
=-0.2513

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 -5.27 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.03780.940.9470.85591.07560.98730.7571.35751.03841.2169
GMI 0.94271.011.16111.27181.152713.1472-0.0931-0.98620.96271.2278
AQI 0.87741.00090.68750.9311.04451.10160.07951.22235.41791.8251
SGI 1.15291.0910.92180.91970.80090.70830.85390.76380.94190.9835
DEPI 0.96160.9820.9470.62070.85561.2460.43294.3371.0460.8174
SGAI 0.99680.99081.03271.02111.14981.03310.90581.2221.00821.1105
LVGI 0.86890.91431.08021.43780.93821.03890.6710.93980.65981.0289
TATA 0.0536-0.0518-0.143-0.122-0.1588-0.1334-0.4069-0.0224-0.31070.0308
M-score -2.10-2.66-3.35-3.33-3.253.09-5.63-3.06-2.07-1.75

Stanley Furniture Co Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.07410.95211.07181.03841.18851.27611.18041.21691.11451.0274
GMI -0.653-0.12650.21660.96271.11931.19391.23981.22781.4611-1.6395
AQI -1.93604435196E+131.34552.05925.41798.50282.45142.34491.82511.42821.1573
SGI 0.82530.87420.92680.94190.93310.95770.97760.98350.94830.9495
DEPI 4.37123.34852.16291.0460.99840.98450.91190.81740.74830.1257
SGAI 1.11821.08871.01961.00821.06291.08581.08661.11051.16651.1922
LVGI 0.89940.53760.6220.65980.55390.96980.92571.02891.3331.4002
TATA -0.0061-0.3151-0.3289-0.3107-0.29790.06490.06050.0308-0.051-0.2513
M-score -7,821,619,181,917.23-4.16-3.75-2.07-0.53-1.28-1.38-1.75-2.41-5.27
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