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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-3.35 (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 -3.35 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: -3.35

-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 -2.66.


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 * 0.8906+0.528 * 0.9862+0.404 * 0.1324+0.892 * 0.8585+0.115 * 0.8729
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0669+4.679 * -0.0544-0.327 * 1.0241
=-3.35

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $5.61 Mil.
Revenue was 12.053 + 11.683 + 13.799 + 13.76 = $51.30 Mil.
Gross Profit was 2.062 + 2.541 + 3.453 + 3.41 = $11.47 Mil.
Total Current Assets was $54.81 Mil.
Total Assets was $59.52 Mil.
Property, Plant and Equipment(Net PPE) was $1.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.47 Mil.
Selling, General & Admin. Expense(SGA) was $12.38 Mil.
Total Current Liabilities was $8.19 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.392 + -1.485 + 0.917 + 0.465 = $-1.50 Mil.
Non Operating Income was 0.006 + 0.005 + 0.402 + 0.012 = $0.43 Mil.
Cash Flow from Operations was 0.795 + -2.197 + 2.131 + 0.589 = $1.32 Mil.
Accounts Receivable was $7.33 Mil.
Revenue was 15.133 + 14.672 + 16.02 + 13.928 = $59.75 Mil.
Gross Profit was 3.839 + 2.983 + 3.726 + 2.624 = $13.17 Mil.
Total Current Assets was $36.57 Mil.
Total Assets was $62.28 Mil.
Property, Plant and Equipment(Net PPE) was $1.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.44 Mil.
Selling, General & Admin. Expense(SGA) was $13.52 Mil.
Total Current Liabilities was $8.36 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)
=(5.607 / 51.295) / (7.334 / 59.753)
=0.1093089 / 0.12273861
=0.8906

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)
=(13.172 / 59.753) / (11.466 / 51.295)
=0.22044081 / 0.22353056
=0.9862

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 - (54.81 + 1.698) / 59.52) / (1 - (36.574 + 1.898) / 62.277)
=0.05060484 / 0.38224385
=0.1324

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
=51.295 / 59.753
=0.8585

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))
=(0.443 / (0.443 + 1.898)) / (0.47 / (0.47 + 1.698))
=0.18923537 / 0.21678967
=0.8729

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)
=(12.382 / 51.295) / (13.519 / 59.753)
=0.24138805 / 0.22624805
=1.0669

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 + 8.186) / 59.52) / ((0 + 8.364) / 62.277)
=0.1375336 / 0.13430319
=1.0241

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
=(-1.495 - 0.425 - 1.318) / 59.52
=-0.0544

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 -3.35 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.95871.00330.39771.34530.57510.57861.0581.25041.03630.8906
GMI 1.34431.05551.34020.74780.83910.90390.79970.83060.81630.9862
AQI 1.42821.15731.01944.5176.48825.03096.08481.29270.15430.1324
SGI 1.10250.97231.13570.77580.90891.01971.02970.94620.89650.8585
DEPI 0.6893-0.3246-0.19220.91210.0406-0.14331.17721.0130.95870.8729
SGAI 1.0041.03730.91931.060.8950.7990.78250.89910.96491.0669
LVGI 1.3331.40020.96521.0550.89090.7950.75570.7390.79861.0241
TATA -0.1854-0.4267-0.3434-0.2767-0.2534-0.0531-0.034-0.0728-0.0335-0.0544
M-score -3.08-4.69-4.44-2.41-2.06-1.55-0.47-2.51-3.07-3.35
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