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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-3.07 (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 -3.07 suggests that the company is not a manipulator.

STLY' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 3.09
Current: -3.07

-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 -2.65.


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 * 1.0363+0.528 * 0.8163+0.404 * 0.1543+0.892 * 0.8965+0.115 * 0.9587
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9649+4.679 * -0.0335-0.327 * 0.7986
=-3.07

* 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 $6.20 Mil.
Revenue was 11.683 + 13.799 + 13.76 + 15.133 = $54.38 Mil.
Gross Profit was 2.541 + 3.453 + 3.41 + 3.839 = $13.24 Mil.
Total Current Assets was $54.22 Mil.
Total Assets was $59.05 Mil.
Property, Plant and Equipment(Net PPE) was $1.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.47 Mil.
Selling, General & Admin. Expense(SGA) was $12.33 Mil.
Total Current Liabilities was $5.93 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.485 + 0.917 + 0.465 + 1.303 = $1.20 Mil.
Non Operating Income was 0.005 + 0.402 + 0.012 + 1.105 = $1.52 Mil.
Cash Flow from Operations was -2.197 + 2.131 + 0.589 + 1.133 = $1.66 Mil.
Accounts Receivable was $6.67 Mil.
Revenue was 14.672 + 16.02 + 13.928 + 16.033 = $60.65 Mil.
Gross Profit was 2.983 + 3.726 + 2.624 + 2.725 = $12.06 Mil.
Total Current Assets was $37.85 Mil.
Total Assets was $60.18 Mil.
Property, Plant and Equipment(Net PPE) was $1.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.50 Mil.
Selling, General & Admin. Expense(SGA) was $14.25 Mil.
Total Current Liabilities was $7.56 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)
=(6.195 / 54.375) / (6.668 / 60.653)
=0.11393103 / 0.10993685
=1.0363

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)
=(12.058 / 60.653) / (13.243 / 54.375)
=0.19880303 / 0.24354943
=0.8163

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 - (54.219 + 1.743) / 59.047) / (1 - (37.851 + 1.944) / 60.178)
=0.05224652 / 0.33871182
=0.1543

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
=54.375 / 60.653
=0.8965

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))
=(0.497 / (0.497 + 1.944)) / (0.47 / (0.47 + 1.743))
=0.20360508 / 0.21238138
=0.9587

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)
=(12.326 / 54.375) / (14.25 / 60.653)
=0.22668506 / 0.23494304
=0.9649

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 + 5.927) / 59.047) / ((0 + 7.564) / 60.178)
=0.10037767 / 0.12569378
=0.7986

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
=(1.2 - 1.524 - 1.656) / 59.047
=-0.0335

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 -3.07 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9470.85591.07560.98730.7571.35751.03840.56861.6691.2504
GMI 1.16111.27181.15274.226-0.2897-0.98620.96271.22780.50880.8306
AQI 0.68750.9311.04451.10160.07951.22235.41792.06494.5171.2927
SGI 0.92180.91970.80090.70830.85390.76380.94190.98350.62530.9462
DEPI 0.9470.62070.85561.2460.43294.3371.0460.15232.54141.013
SGAI 1.03271.02111.14981.17670.79521.2221.00821.11051.19190.8991
LVGI 1.08021.43780.93821.03890.6710.93980.65981.14371.0550.739
TATA -0.143-0.16-0.1588-0.1334-0.4069-0.0224-0.31070.0307-0.2767-0.0728
M-score -3.35-3.51-3.25-1.65-5.71-3.06-2.07-2.36-2.21-2.51

Stanley Furniture Co Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.43840.95871.00330.39771.34530.57510.57861.0581.25041.0363
GMI 1.51871.34431.05551.34020.74780.83910.90390.79970.83060.8163
AQI 2.06491.42821.15731.01944.5176.48825.03096.08481.29270.1543
SGI 1.27561.10250.97231.13570.77580.90891.01971.02970.94620.8965
DEPI 0.02190.6893-0.3246-0.19220.91210.0406-0.14331.17721.0130.9587
SGAI 0.91231.0041.03730.91931.060.8950.7990.78250.89910.9649
LVGI 1.14371.3331.40020.96521.0550.89090.7950.75570.7390.7986
TATA -0.0908-0.1854-0.4267-0.3434-0.2767-0.2534-0.0531-0.034-0.0728-0.0335
M-score -2.62-3.08-4.69-4.44-2.41-2.06-1.55-0.47-2.51-3.07
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