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Stantec Inc (NYSE:STN)
Beneish M-Score
-1.44 (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.

Stantec Inc has a M-score of -1.62 signals that the company is a manipulator.

STN' s 10-Year Beneish M-Score Range
Min: -3.29   Max: -0.07
Current: -1.44

-3.29
-0.07

During the past 13 years, the highest Beneish M-Score of Stantec Inc was -0.07. The lowest was -3.29. And the median was -2.47.


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 Stantec 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 * 1.6796+0.528 * 1.0038+0.404 * 1.071+0.892 * 1.0469+0.115 * 1.1875
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0098+4.679 * 0.0249-0.327 * 0.9177
=-1.62

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $655 Mil.
Revenue was 574.406793368 + 559.298621018 + 561.499306278 + 612.737262737 = $2,308 Mil.
Gross Profit was 259.425798625 + 259.273260422 + 250.578390565 + 270.430478612 = $1,040 Mil.
Total Current Assets was $723 Mil.
Total Assets was $1,794 Mil.
Property, Plant and Equipment(Net PPE) was $127 Mil.
Depreciation, Depletion and Amortization(DDA) was $63 Mil.
Selling, General & Admin. Expense(SGA) was $783 Mil.
Total Current Liabilities was $437 Mil.
Long-Term Debt was $210 Mil.
Net Income was 34.9106348564 + 30.0816294183 + 33.0098855359 + 44.1313232222 = $142 Mil.
Non Operating Income was -5.20177921553 + -0.314629893803 + 3.52323968089 + -1.24602670057 = $-3 Mil.
Cash Flow from Operations was 0 + -69.9461087336 + 83.0055497745 + 87.6232858051 = $101 Mil.
Accounts Receivable was $373 Mil.
Revenue was 585.243767313 + 516.555355536 + 540.707706767 + 562.056092843 = $2,205 Mil.
Gross Profit was 267.79501385 + 235.493249325 + 239.315789474 + 254.343326886 = $997 Mil.
Total Current Assets was $746 Mil.
Total Assets was $1,738 Mil.
Property, Plant and Equipment(Net PPE) was $139 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $741 Mil.
Total Current Liabilities was $385 Mil.
Long-Term Debt was $298 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)
=(655.441164577 / 2307.9419834) / (372.750692521 / 2204.56292246)
=0.28399378 / 0.16908145
=1.6796

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)
=(259.273260422 / 2204.56292246) / (259.425798625 / 2307.9419834)
=0.45221997 / 0.45049136
=1.0038

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 - (723.22684998 + 126.993934493) / 1793.83259199) / (1 - (746.049861496 + 138.530932595) / 1738.4099723)
=0.52603114 / 0.49115525
=1.071

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
=2307.9419834 / 2204.56292246
=1.0469

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))
=(89.5216131339 / (89.5216131339 + 138.530932595)) / (62.7084242031 / (62.7084242031 + 126.993934493))
=0.39254819 / 0.33056217
=1.1875

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)
=(782.888633056 / 2307.9419834) / (740.534221577 / 2204.56292246)
=0.33921504 / 0.33590977
=1.0098

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)
=((209.677315002 + 437.101496159) / 1793.83259199) / ((298.159741459 + 384.850415512) / 1738.4099723)
=0.36055695 / 0.3928936
=0.9177

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
=(142.133473033 - -3.23919612901 - 100.682726846) / 1793.83259199
=0.0249

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.

Stantec Inc has a M-score of -1.62 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.

Stantec Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.96740.76471.12460.66730.8791.41540.78261.00910.90320.988
GMI 1.1560.94971.00191.05941.01170.81951.2380.9931.01890.9962
AQI 1.58871.04241.02860.98311.10991.00190.96241.00620.9261.0401
SGI 1.44351.33091.3461.151.31620.84351.35161.14921.11261.0437
DEPI 1.03840.81131.2220.81750.86291.06380.48951.89981.02570.9816
SGAI 0.8411.04011.02850.93690.99061.21950.80591.00670.98721.0025
LVGI 0.93330.71011.39511.19140.95461.04390.94790.95970.89350.9979
TATA -0.0276-0.0553-0.0273-0.1116-0.0412-0.0187-0.0749-0.0399-0.0784-0.0225
M-score -1.87-2.60-2.28-3.22-2.45-2.46-2.61-2.41-2.82-2.55

Stantec Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.92140.91670.77440.94220.90511.03161.05070.97571.18071.6796
GMI 1.0761.07371.16980.94630.93820.93370.90650.99610.99551.0038
AQI 0.97920.98140.93080.9260.96960.97461.05071.04011.06041.071
SGI 1.2161.24031.34681.06651.04191.01550.96931.05681.06911.0469
DEPI 1.87241.94091.91811.00291.03690.73850.7250.70160.66391.1875
SGAI 0.92680.92820.84721.06271.07261.07451.11781.00231.0041.0098
LVGI 0.9630.93390.90830.89350.94851.03240.97460.99791.00630.9177
TATA -0.0406-0.0449-0.0518-0.078-0.0726-0.1734-0.1589-0.1434-0.10430.0249
M-score -2.39-2.38-2.40-2.87-2.91-3.35-3.28-3.14-2.76-1.62
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