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Steiner Leisure Ltd (NAS:STNR)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

STNR' s 10-Year Beneish M-Score Range
Min: -3.43   Max: 0.42
Current: -2.49

-3.43
0.42

During the past 13 years, the highest Beneish M-Score of Steiner Leisure Ltd was 0.42. The lowest was -3.43. And the median was -2.57.


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 * 1.0595+0.528 * 1.0416+0.404 * 1.038+0.892 * 1.0249+0.115 * 0.9266
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0365+4.679 * -0.0232-0.327 * 0.9997
=-2.49

* 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 $81.5 Mil.
Revenue was 219.677 + 209.263 + 216.736 + 220.964 = $866.6 Mil.
Gross Profit was 48.664 + 44.704 + 44.911 + 46.129 = $184.4 Mil.
Total Current Assets was $195.2 Mil.
Total Assets was $751.0 Mil.
Property, Plant and Equipment(Net PPE) was $110.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.2 Mil.
Selling, General & Admin. Expense(SGA) was $135.1 Mil.
Total Current Liabilities was $198.5 Mil.
Long-Term Debt was $96.1 Mil.
Net Income was 12.106 + 8.283 + 7.361 + 12.955 = $40.7 Mil.
Non Operating Income was 0.202 + 0.326 + 0.143 + 0.459 = $1.1 Mil.
Cash Flow from Operations was 5.756 + 20.144 + -9.817 + 40.948 = $57.0 Mil.
Accounts Receivable was $75.0 Mil.
Revenue was 214.831 + 207.653 + 212.014 + 211.079 = $845.6 Mil.
Gross Profit was 44.316 + 45.553 + 50.223 + 47.318 = $187.4 Mil.
Total Current Assets was $224.4 Mil.
Total Assets was $772.2 Mil.
Property, Plant and Equipment(Net PPE) was $106.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.3 Mil.
Selling, General & Admin. Expense(SGA) was $127.2 Mil.
Total Current Liabilities was $199.0 Mil.
Long-Term Debt was $104.0 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)
=(81.467 / 866.64) / (75.021 / 845.577)
=0.09400328 / 0.08872167
=1.0595

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)
=(44.704 / 845.577) / (48.664 / 866.64)
=0.22163564 / 0.21278501
=1.0416

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 - (195.205 + 110.317) / 750.966) / (1 - (224.373 + 106.553) / 772.19)
=0.59316134 / 0.57144485
=1.038

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
=866.64 / 845.577
=1.0249

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))
=(21.281 / (21.281 + 106.553)) / (24.159 / (24.159 + 110.317))
=0.16647371 / 0.17965287
=0.9266

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)
=(135.122 / 866.64) / (127.196 / 845.577)
=0.1559148 / 0.15042509
=1.0365

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)
=((96.081 + 198.478) / 750.966) / ((103.966 + 199) / 772.19)
=0.39224013 / 0.39234644
=0.9997

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
=(40.705 - 1.13 - 57.031) / 750.966
=-0.0232

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 -2.49 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

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 0.7470.81311.45781.37480.97730.90261.14690.88971.0581.0418
GMI 1.02680.95681.01650.97051.00270.95521.08170.93231.02951.0194
AQI 0.97090.81130.99771.1841.02891.08541.12590.93471.60670.9626
SGI 1.12311.21711.16321.18361.12571.02180.90721.26461.1311.1566
DEPI 0.88260.97050.90921.14790.87080.93281.52810.71441.02670.9444
SGAI 1.04160.980.99451.15631.06561.05820.90951.11840.97680.9983
LVGI 0.7660.53591.00331.23381.05960.95351.40810.74211.6760.9411
TATA -0.0429-0.0365-0.0382-0.0523-0.0494-0.0852-0.0713-0.0189-0.0341-0.0626
M-score -2.75-2.58-2.09-2.24-2.65-2.94-2.72-2.46-2.42-2.59

Steiner Leisure Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.05891.06871.04180.91190.26441.09920.98831.11193.62051.0595
GMI 0.99951.02371.01941.01341.03521.00511.01831.06311.05621.0416
AQI 1.59011.670.96260.96550.9460.94580.97010.98091.031.038
SGI 1.15381.15971.15661.12671.0971.07541.05421.04271.03191.0249
DEPI 1.05611.01720.94440.95420.96670.95921.00680.97910.92560.9266
SGAI 1.07741.00440.99831.02121.01051.07871.05271.01391.03821.0365
LVGI 2.11352.0440.94110.95810.93330.88170.90110.89180.93620.9997
TATA -0.0499-0.0548-0.0626-0.0716-0.0794-0.0578-0.0648-0.0357-0.0257-0.0232
M-score -2.65-2.59-2.59-2.79-3.43-2.59-2.72-2.45-0.11-2.49
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