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Steiner Leisure Ltd (NAS:STNR)
Beneish M-Score
-4.57 (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.

Steiner Leisure Ltd has a M-score of -4.57 suggests that the company is not a manipulator.

STNR' s 10-Year Beneish M-Score Range
Min: -4.58   Max: 0.42
Current: -4.57

-4.58
0.42

During the past 13 years, the highest Beneish M-Score of Steiner Leisure Ltd was 0.42. The lowest was -4.58. And the median was -2.59.


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 Steiner Leisure Ltd 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 * 1.1416+0.528 * 0.9539+0.404 * 0.7496+0.892 * 1.0106+0.115 * 0.9739
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0573+4.679 * -0.4131-0.327 * 1.4928
=-4.57

* 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 $77.9 Mil.
Revenue was 217.361 + 216.104 + 217.778 + 219.677 = $870.9 Mil.
Gross Profit was 46.15 + 48.13 + 47.825 + 48.664 = $190.8 Mil.
Total Current Assets was $202.7 Mil.
Total Assets was $557.0 Mil.
Property, Plant and Equipment(Net PPE) was $106.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.2 Mil.
Selling, General & Admin. Expense(SGA) was $140.3 Mil.
Total Current Liabilities was $220.1 Mil.
Long-Term Debt was $101.1 Mil.
Net Income was 8.952 + 8.112 + -185.847 + 12.106 = $-156.7 Mil.
Non Operating Income was 0.217 + 0.278 + 0.382 + 0.202 = $1.1 Mil.
Cash Flow from Operations was 28.46 + 10.729 + 27.395 + 5.756 = $72.3 Mil.
Accounts Receivable was $67.5 Mil.
Revenue was 209.263 + 216.736 + 220.964 + 214.831 = $861.8 Mil.
Gross Profit was 44.704 + 44.911 + 46.129 + 44.316 = $180.1 Mil.
Total Current Assets was $191.0 Mil.
Total Assets was $751.6 Mil.
Property, Plant and Equipment(Net PPE) was $114.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.1 Mil.
Selling, General & Admin. Expense(SGA) was $131.3 Mil.
Total Current Liabilities was $197.2 Mil.
Long-Term Debt was $93.1 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)
=(77.882 / 870.92) / (67.507 / 861.794)
=0.08942498 / 0.07833311
=1.1416

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)
=(48.13 / 861.794) / (46.15 / 870.92)
=0.20893624 / 0.21904308
=0.9539

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 - (202.653 + 106.279) / 556.976) / (1 - (190.956 + 114.114) / 751.574)
=0.44534055 / 0.59409187
=0.7496

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
=870.92 / 861.794
=1.0106

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))
=(24.077 / (24.077 + 114.114)) / (23.156 / (23.156 + 106.279))
=0.17422987 / 0.17890061
=0.9739

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)
=(140.28 / 870.92) / (131.29 / 861.794)
=0.16107105 / 0.15234499
=1.0573

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)
=((101.061 + 220.061) / 556.976) / ((93.081 + 197.184) / 751.574)
=0.57654549 / 0.38620948
=1.4928

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
=(-156.677 - 1.079 - 72.34) / 556.976
=-0.4131

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.

Steiner Leisure Ltd has a M-score of -4.57 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.

Steiner Leisure Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.45781.37480.97730.90261.14690.88971.0581.04180.98831.1509
GMI 1.01650.97051.00270.95521.08170.93231.02951.01941.01831.01
AQI 0.99771.1841.02891.08541.17420.89621.60190.96550.97010.7836
SGI 1.16321.18361.12571.02180.90721.26461.1311.15661.05421.0093
DEPI 0.90921.14790.87080.93281.48420.73551.02670.94441.00680.8099
SGAI 0.99451.15631.06561.05820.90951.11840.97680.99831.05271.0703
LVGI 1.00331.23381.05960.95351.40810.74211.6760.94110.90111.4994
TATA -0.0382-0.0523-0.0494-0.0852-0.0713-0.0189-0.0341-0.0626-0.0648-0.3665
M-score -2.09-2.24-2.65-2.94-2.71-2.48-2.42-2.59-2.72-4.33

Steiner Leisure Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.91190.26441.09920.98831.11193.62051.05951.15091.1231.1416
GMI 1.01341.03521.00511.01831.06311.05621.04161.010.95850.9539
AQI 0.96550.9460.94580.97010.98091.031.0380.78360.7920.7496
SGI 1.12671.0971.07541.05421.04271.03191.02491.00931.00311.0106
DEPI 0.95420.96670.95921.00680.97910.92560.92660.80990.89560.9739
SGAI 1.02121.01051.07871.05271.01391.03821.03651.07031.08971.0573
LVGI 0.95810.93330.88170.90110.89180.93620.99971.49941.5531.4928
TATA -0.0716-0.0794-0.0578-0.0648-0.0357-0.0257-0.0232-0.3665-0.4073-0.4131
M-score -2.79-3.43-2.59-2.72-2.45-0.11-2.49-4.33-4.58-4.57
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