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Steiner Leisure Ltd (NAS:STNR)
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.

Steiner Leisure Ltd has a M-score of -2.51 suggests that the company is not a manipulator.

STNR' s 10-Year Beneish M-Score Range
Min: -3.59   Max: 0.39
Current: -2.51

-3.59
0.39

During the past 13 years, the highest Beneish M-Score of Steiner Leisure Ltd was 0.39. The lowest was -3.59. And the median was -2.51.


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 * 1.0204+0.528 * 1.0562+0.404 * 1.03+0.892 * 1.0319+0.115 * 0.9256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0382+4.679 * -0.0257-0.327 * 0.9362
=-2.51

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 8.283 + 7.361 + 12.955 + 11.452 = $40.1 Mil.
Non Operating Income was 0.326 + 0.143 + 0.459 + 0.132 = $1.1 Mil.
Cash Flow from Operations was 20.144 + -9.817 + 40.948 + 7.025 = $58.3 Mil.
Accounts Receivable was $64.1 Mil.
Revenue was 207.653 + 212.014 + 211.079 + 204.388 = $835.1 Mil.
Gross Profit was 45.553 + 50.223 + 47.318 + 41.203 = $184.3 Mil.
Total Current Assets was $220.3 Mil.
Total Assets was $764.9 Mil.
Property, Plant and Equipment(Net PPE) was $103.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.9 Mil.
Selling, General & Admin. Expense(SGA) was $122.6 Mil.
Total Current Liabilities was $208.5 Mil.
Long-Term Debt was $107.0 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)
=(67.507 / 861.794) / (64.108 / 835.134)
=0.07833311 / 0.07676373
=1.0204

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)
=(44.911 / 835.134) / (44.704 / 861.794)
=0.22067956 / 0.20893624
=1.0562

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 - (190.956 + 114.114) / 751.574) / (1 - (220.291 + 103.45) / 764.921)
=0.59409187 / 0.57676544
=1.03

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
=861.794 / 835.134
=1.0319

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))
=(19.891 / (19.891 + 103.45)) / (24.077 / (24.077 + 114.114))
=0.16126835 / 0.17422987
=0.9256

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)
=(131.29 / 861.794) / (122.551 / 835.134)
=0.15234499 / 0.14674412
=1.0382

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)
=((93.081 + 197.184) / 751.574) / ((107.023 + 208.518) / 764.921)
=0.38620948 / 0.41251449
=0.9362

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
=(40.051 - 1.06 - 58.3) / 751.574
=-0.0257

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 -2.51 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.

Steiner Leisure Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.81371.111.37480.97730.90261.14690.88971.0581.04180.9883
GMI 0.95681.01650.97051.00270.95521.08170.93231.02951.01941.0183
AQI 0.81130.99771.1841.02891.08541.17420.89621.60670.96260.9701
SGI 1.21711.16321.18361.12571.02180.90721.26461.1311.15661.0542
DEPI 0.97050.90921.14790.87080.93281.48420.73551.02670.94441.0068
SGAI 0.980.99451.15631.06561.05820.90951.11840.97680.99831.0527
LVGI 0.53591.12931.09621.05960.95351.40810.74211.6760.94110.9011
TATA -0.0365-0.0382-0.0523-0.0494-0.0852-0.0713-0.0189-0.0341-0.0626-0.0648
M-score -2.58-2.46-2.20-2.65-2.94-2.71-2.48-2.42-2.59-2.72

Steiner Leisure Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.18771.05891.06871.04180.91190.9381.09920.98831.11191.0204
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 1.04481.07741.00440.99831.02121.01051.07871.05271.01391.0382
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 -2.45-2.65-2.59-2.59-2.79-2.81-2.59-2.72-2.45-2.51
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