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Stanley Furniture Co Inc (NAS:STLY)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

STLY' s Beneish M-Score Range Over the Past 10 Years
Min: -5.63   Max: 3.09
Current: -2.51

-5.63
3.09

During the past 13 years, the highest Beneish M-Score of Stanley Furniture Co Inc was 3.09. The lowest was -5.63. And the median was -2.62.


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 * 1.2504+0.528 * 0.8306+0.404 * 1.2927+0.892 * 0.9462+0.115 * 1.013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8991+4.679 * -0.0728-0.327 * 0.739
=-2.51

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $6.93 Mil.
Revenue was 13.799 + 13.76 + 15.133 + 14.672 = $57.36 Mil.
Gross Profit was 3.453 + 3.41 + 3.839 + 2.983 = $13.69 Mil.
Total Current Assets was $35.98 Mil.
Total Assets was $63.15 Mil.
Property, Plant and Equipment(Net PPE) was $1.79 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.47 Mil.
Selling, General & Admin. Expense(SGA) was $12.66 Mil.
Total Current Liabilities was $7.58 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.917 + 0.465 + 1.303 + 2.655 = $5.34 Mil.
Non Operating Income was 0.402 + 0.012 + 1.105 + 3.831 = $5.35 Mil.
Cash Flow from Operations was 2.131 + 0.589 + 1.133 + 0.736 = $4.59 Mil.
Accounts Receivable was $5.85 Mil.
Revenue was 16.02 + 13.928 + 16.033 + 14.642 = $60.62 Mil.
Gross Profit was 3.726 + 2.624 + 2.725 + 2.938 = $12.01 Mil.
Total Current Assets was $39.11 Mil.
Total Assets was $59.64 Mil.
Property, Plant and Equipment(Net PPE) was $1.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.53 Mil.
Selling, General & Admin. Expense(SGA) was $14.88 Mil.
Total Current Liabilities was $9.69 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)
=(6.925 / 57.364) / (5.853 / 60.623)
=0.12072031 / 0.09654751
=1.2504

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)
=(3.41 / 60.623) / (3.453 / 57.364)
=0.19815911 / 0.23856426
=0.8306

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 - (35.978 + 1.787) / 63.146) / (1 - (39.106 + 1.99) / 59.641)
=0.40194153 / 0.31094381
=1.2927

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
=57.364 / 60.623
=0.9462

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))
=(0.532 / (0.532 + 1.99)) / (0.47 / (0.47 + 1.787))
=0.2109437 / 0.20824103
=1.013

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)
=(12.661 / 57.364) / (14.882 / 60.623)
=0.22071334 / 0.24548439
=0.8991

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 + 7.584) / 63.146) / ((0 + 9.693) / 59.641)
=0.12010262 / 0.16252243
=0.739

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
=(5.34 - 5.35 - 4.589) / 63.146
=-0.0728

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 -2.51 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 0.9470.85591.07560.98730.7571.35751.67090.5851.00821.2504
GMI 1.16111.27181.152713.1472-0.0931-0.98620.52961.04591.08580.8306
AQI 0.68750.9311.04451.10160.07951.22235.41792.06494.5171.2927
SGI 0.92180.91970.80090.70830.85390.76380.58540.95591.03520.9462
DEPI 0.9470.62070.85561.2460.43294.33720.29280.02190.91211.013
SGAI 1.03271.02111.14981.03310.90581.2221.38011.09490.88320.8991
LVGI 1.08021.43780.93821.03890.6710.93980.65981.14371.0550.739
TATA -0.143-0.16-0.1588-0.1334-0.4069-0.0224-0.3531-0.0908-0.2767-0.0728
M-score -3.35-3.51-3.253.09-5.63-3.06-0.08-3.05-2.28-2.51

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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