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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-0.47 (As of Today)

Warning Sign:

Beneish M-Score -0.47 higher than -2.22, which implies that it might have manipulated its financial results.

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 -0.47 signals that the company is a manipulator.

STLY' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 3.09
Current: -0.47

-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 * 1.058+0.528 * 0.7997+0.404 * 6.0848+0.892 * 1.0297+0.115 * 1.1772
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7825+4.679 * -0.034-0.327 * 0.7557
=-0.47

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $6.74 Mil.
Revenue was 13.76 + 15.133 + 14.672 + 16.02 = $59.59 Mil.
Gross Profit was 3.41 + 3.839 + 2.983 + 3.726 = $13.96 Mil.
Total Current Assets was $34.85 Mil.
Total Assets was $60.65 Mil.
Property, Plant and Equipment(Net PPE) was $1.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.48 Mil.
Selling, General & Admin. Expense(SGA) was $13.05 Mil.
Total Current Liabilities was $5.90 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.465 + 1.303 + 2.655 + -3.21 = $1.21 Mil.
Non Operating Income was 0.012 + 1.105 + 3.831 + -2.51 = $2.44 Mil.
Cash Flow from Operations was 0.589 + 1.133 + 0.736 + -1.624 = $0.83 Mil.
Accounts Receivable was $6.19 Mil.
Revenue was 13.928 + 16.033 + 14.642 + 13.265 = $57.87 Mil.
Gross Profit was 2.624 + 2.725 + 2.938 + 2.553 = $10.84 Mil.
Total Current Assets was $57.69 Mil.
Total Assets was $63.61 Mil.
Property, Plant and Equipment(Net PPE) was $1.80 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.57 Mil.
Selling, General & Admin. Expense(SGA) was $16.20 Mil.
Total Current Liabilities was $8.19 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)
=(6.741 / 59.585) / (6.188 / 57.868)
=0.1131325 / 0.10693302
=1.058

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)
=(3.839 / 57.868) / (3.41 / 59.585)
=0.18732287 / 0.23425359
=0.7997

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 - (34.854 + 1.851) / 60.648) / (1 - (57.685 + 1.797) / 63.609)
=0.39478631 / 0.06488076
=6.0848

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
=59.585 / 57.868
=1.0297

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))
=(0.57 / (0.57 + 1.797)) / (0.476 / (0.476 + 1.851))
=0.24081115 / 0.20455522
=1.1772

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)
=(13.048 / 59.585) / (16.195 / 57.868)
=0.21898129 / 0.27986106
=0.7825

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 + 5.902) / 60.648) / ((0 + 8.191) / 63.609)
=0.09731566 / 0.12877109
=0.7557

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
=(1.213 - 2.438 - 0.834) / 60.648
=-0.034

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 -0.47 signals that the company is likely to 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.27611.30510.70541.54961.62440.6891.34530.57510.57861.058
GMI 1.19391.05320.83540.73460.57050.67790.74780.83910.90390.7997
AQI 2.45142.34492.06491.42821.15731.01944.5126.48825.03096.0848
SGI 0.95770.88420.79280.68210.60050.65560.77580.90891.01971.0297
DEPI 0.98452.34840.42449.8012-2.95540.14130.91210.0406-0.14331.1772
SGAI 1.08581.13791.24881.38411.44061.35421.060.8950.7990.7825
LVGI 0.96980.92571.14371.3331.40020.96521.05380.89090.7950.7557
TATA 0.0649-0.0196-0.0908-0.1854-0.4267-0.3434-0.2764-0.2534-0.0531-0.034
M-score -1.28-1.67-3.17-2.26-5.08-4.99-2.41-2.06-1.55-0.47
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