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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-5.07 (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 -5.07 suggests that the company is not a manipulator.

STLY' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 3.09
Current: -5.07

-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 -2.61.


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 * 0.3576+0.528 * -1.7722+0.404 * 1.0194+0.892 * 1.2633+0.115 * 0.0599
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.004+4.679 * -0.1449-0.327 * 0.9652
=-5.07

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $6.19 Mil.
Revenue was 13.928 + 24.038 + 21.891 + 51.65 = $111.51 Mil.
Gross Profit was 2.916 + -12.026 + 1.393 + -0.273 = $-7.99 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 $2.36 Mil.
Selling, General & Admin. Expense(SGA) was $23.14 Mil.
Total Current Liabilities was $8.19 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.264 + -19.06 + -4.41 + -4.544 = $-30.28 Mil.
Non Operating Income was 0.024 + -0.019 + 0.331 + 0.016 = $0.35 Mil.
Cash Flow from Operations was -1.251 + -6.285 + -2.126 + -11.749 = $-21.41 Mil.
Accounts Receivable was $13.70 Mil.
Revenue was 14.661 + 24.166 + 26.052 + 23.384 = $88.26 Mil.
Gross Profit was 3.461 + 2.18 + 3.385 + 2.182 = $11.21 Mil.
Total Current Assets was $72.95 Mil.
Total Assets was $100.53 Mil.
Property, Plant and Equipment(Net PPE) was $21.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.75 Mil.
Selling, General & Admin. Expense(SGA) was $18.24 Mil.
Total Current Liabilities was $13.41 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)
=(6.188 / 111.507) / (13.699 / 88.263)
=0.05549427 / 0.1552066
=0.3576

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)
=(-12.026 / 88.263) / (2.916 / 111.507)
=0.12698413 / -0.07165469
=-1.7722

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 - (57.685 + 1.797) / 63.609) / (1 - (72.947 + 21.184) / 100.529)
=0.06488076 / 0.06364333
=1.0194

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
=111.507 / 88.263
=1.2633

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))
=(0.746 / (0.746 + 21.184)) / (2.364 / (2.364 + 1.797))
=0.03401733 / 0.56813266
=0.0599

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)
=(23.136 / 111.507) / (18.24 / 88.263)
=0.20748473 / 0.20665511
=1.004

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 + 8.191) / 63.609) / ((0 + 13.412) / 100.529)
=0.12877109 / 0.13341424
=0.9652

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
=(-30.278 - 0.352 - -21.411) / 63.609
=-0.1449

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 -5.07 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

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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.95211.07181.03841.18851.27611.30511.01240.92030.84810.3576
GMI -0.12650.21660.96271.11931.19391.05321.6482.0367-1.7137-1.7722
AQI 1.34552.05925.41798.50282.45142.34491.82511.42821.15731.0194
SGI 0.87420.92680.94190.93310.95770.88421.18221.14851.15021.2633
DEPI 3.34852.16291.0460.99840.98452.34840.81740.74830.12570.0599
SGAI 1.08871.01961.00821.06291.08581.13791.00811.04861.06671.004
LVGI 0.53760.6220.65980.55390.96980.92571.02891.3331.40020.9652
TATA -0.3151-0.3289-0.3107-0.29790.0649-0.01960.0308-0.051-0.2513-0.1449
M-score -4.16-3.75-2.07-0.53-1.28-1.67-1.52-2.09-5.27-5.07
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