Switch to:
Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-4.28 (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 -4.28 suggests that the company is not a manipulator.

STLY' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 3.09
Current: -4.28

-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 -2.68.


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 * 0.508+0.528 * -3.4198+0.404 * 6.4882+0.892 * 1.0288+0.115 * 0.0406
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9077+4.679 * -0.257-0.327 * 0.8909
=-4.28

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $6.67 Mil.
Revenue was 14.672 + 16.02 + 13.928 + 24.038 = $68.66 Mil.
Gross Profit was 2.983 + 2.778 + 2.916 + -12.026 = $-3.35 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 $16.36 Mil.
Total Current Liabilities was $7.56 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 2.655 + -4.158 + -2.264 + -19.06 = $-22.83 Mil.
Non Operating Income was 3.831 + -2.51 + 0.024 + -0.019 = $1.33 Mil.
Cash Flow from Operations was 0.736 + -1.554 + -1.251 + -6.62 = $-8.69 Mil.
Accounts Receivable was $12.76 Mil.
Revenue was 14.642 + 13.265 + 14.661 + 24.166 = $66.73 Mil.
Gross Profit was 2.938 + 2.553 + 3.461 + 2.18 = $11.13 Mil.
Total Current Assets was $66.05 Mil.
Total Assets was $90.45 Mil.
Property, Plant and Equipment(Net PPE) was $19.68 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.16 Mil.
Selling, General & Admin. Expense(SGA) was $17.52 Mil.
Total Current Liabilities was $12.76 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)
=(6.668 / 68.658) / (12.758 / 66.734)
=0.09711905 / 0.19117691
=0.508

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)
=(2.778 / 66.734) / (2.983 / 68.658)
=0.16681152 / -0.048778
=-3.4198

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 - (37.851 + 1.944) / 60.178) / (1 - (66.049 + 19.681) / 90.452)
=0.33871182 / 0.05220448
=6.4882

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
=68.658 / 66.734
=1.0288

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))
=(0.164 / (0.164 + 19.681)) / (0.497 / (0.497 + 1.944))
=0.00826405 / 0.20360508
=0.0406

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)
=(16.36 / 68.658) / (17.519 / 66.734)
=0.2382825 / 0.26251985
=0.9077

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 + 7.564) / 60.178) / ((0 + 12.762) / 90.452)
=0.12569378 / 0.14109141
=0.8909

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
=(-22.827 - 1.326 - -8.689) / 60.178
=-0.257

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 -4.28 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

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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.03841.18851.27611.30510.70541.54961.42920.60521.18840.508
GMI 0.96271.11931.19391.05320.83540.7346-2.463-2.3114-2.9962-3.4198
AQI 5.41798.50282.45142.34492.06491.42821.15731.01944.5126.4882
SGI 0.94190.93310.95770.88420.79280.68210.68260.74630.87821.0288
DEPI 1.0460.99840.98452.34840.42449.80120.13240.13780.91210.0406
SGAI 1.00821.06291.08581.13791.24881.38411.42871.34481.06910.9077
LVGI 0.65980.55390.96980.92571.14371.3331.40020.96521.05380.8909
TATA -0.3107-0.29790.0649-0.0196-0.0908-0.1854-0.4202-0.3308-0.28-0.257
M-score -2.07-0.53-1.28-1.67-3.17-2.26-6.40-6.50-4.46-4.28
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK