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Steiner Leisure Ltd (NAS:STNR)
Beneish M-Score
-2.37 (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 -2.37 suggests that the company is not a manipulator.

STNR' s 10-Year Beneish M-Score Range
Min: -3.43   Max: 0.42
Current: -2.37

-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 * 1.1119+0.528 * 1.0631+0.404 * 0.9809+0.892 * 1.0427+0.115 * 0.9791
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5727+4.679 * -0.0357-0.327 * 0.8918
=-2.37

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $78.0 Mil.
Revenue was 216.736 + 220.964 + 214.831 + 207.653 = $860.2 Mil.
Gross Profit was 44.911 + 46.129 + 44.316 + 45.553 = $180.9 Mil.
Total Current Assets was $217.8 Mil.
Total Assets was $770.4 Mil.
Property, Plant and Equipment(Net PPE) was $111.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.8 Mil.
Selling, General & Admin. Expense(SGA) was $72.0 Mil.
Total Current Liabilities was $199.2 Mil.
Long-Term Debt was $93.1 Mil.
Net Income was 7.361 + 12.954 + 11.452 + 12.292 = $44.1 Mil.
Non Operating Income was 0.143 + 0.459 + 0.132 + 0.159 = $0.9 Mil.
Cash Flow from Operations was -9.817 + 40.948 + 7.025 + 32.535 = $70.7 Mil.
Accounts Receivable was $67.3 Mil.
Revenue was 212.014 + 211.079 + 204.388 + 197.481 = $825.0 Mil.
Gross Profit was 50.223 + 47.318 + 41.203 + 45.713 = $184.5 Mil.
Total Current Assets was $212.8 Mil.
Total Assets was $750.8 Mil.
Property, Plant and Equipment(Net PPE) was $99.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.9 Mil.
Selling, General & Admin. Expense(SGA) was $120.6 Mil.
Total Current Liabilities was $201.9 Mil.
Long-Term Debt was $117.6 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)
=(77.99 / 860.184) / (67.267 / 824.962)
=0.09066665 / 0.08153951
=1.1119

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)
=(46.129 / 824.962) / (44.911 / 860.184)
=0.22359454 / 0.2103143
=1.0631

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 - (217.819 + 111.251) / 770.382) / (1 - (212.815 + 99.531) / 750.837)
=0.57284828 / 0.58400292
=0.9809

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
=860.184 / 824.962
=1.0427

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))
=(19.86 / (19.86 + 99.531)) / (22.768 / (22.768 + 111.251))
=0.1663442 / 0.16988636
=0.9791

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)
=(72.046 / 860.184) / (120.639 / 824.962)
=0.0837565 / 0.14623583
=0.5727

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)
=((93.139 + 199.206) / 770.382) / ((117.562 + 201.935) / 750.837)
=0.37948057 / 0.42552112
=0.8918

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
=(44.059 - 0.893 - 70.691) / 770.382
=-0.0357

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 -2.37 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.81311.45781.37480.97730.90261.14690.88971.0581.04180.9883
GMI 0.95681.01650.97051.00270.95521.08170.93231.02951.01941.0183
AQI 0.81130.99771.1841.02891.08541.12590.93471.60670.96260.9701
SGI 1.21711.16321.18361.12571.02180.90721.26461.1311.15661.0542
DEPI 0.97050.90921.14790.87080.93281.52810.71441.02670.94441.0068
SGAI 0.980.99451.15631.06560.4782.01331.11840.97680.99830.4461
LVGI 0.53591.00331.23381.05960.95351.40810.74211.6760.94110.9011
TATA -0.0365-0.0382-0.0523-0.0494-0.0852-0.0713-0.0189-0.0341-0.0626-0.0648
M-score -2.58-2.09-2.24-2.65-2.84-2.91-2.46-2.42-2.59-2.62

Steiner Leisure Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.18771.05891.06871.04180.91190.26441.09920.98831.11193.6205
GMI 1.01190.99951.02371.01941.01341.03521.00511.01831.06311.0562
AQI 1.53171.59011.670.96260.96550.9460.94580.97010.98091.03
SGI 1.13971.15381.15971.15661.12671.0971.07541.05421.04271.0319
DEPI 1.02351.05611.01720.94440.95420.96670.95921.00680.97910.9256
SGAI 1.04481.07741.00440.99831.02121.01050.92150.76140.57270.442
LVGI 2.00812.11352.0440.94110.95810.93330.88170.90110.89180.9362
TATA -0.0339-0.0499-0.0548-0.0626-0.0716-0.0794-0.0578-0.0648-0.0357-0.0257
M-score -2.45-2.65-2.59-2.59-2.79-3.43-2.56-2.67-2.37-0.01
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