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Steiner Leisure Ltd (NAS:STNR)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

STNR' s 10-Year Beneish M-Score Range
Min: -3.3   Max: -0.65
Current: -2.72

-3.3
-0.65

During the past 13 years, the highest Beneish M-Score of Steiner Leisure Ltd was -0.65. The lowest was -3.30. And the median was -2.58.


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 * 0.9883+0.528 * 1.0183+0.404 * 0.9701+0.892 * 1.0542+0.115 * 1.0068
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0527+4.679 * -0.0648-0.327 * 0.9011
=-2.72

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $68.8 Mil.
Revenue was 220.964 + 214.831 + 207.653 + 212.014 = $855.5 Mil.
Gross Profit was 46.129 + 44.316 + 45.553 + 50.223 = $186.2 Mil.
Total Current Assets was $219.9 Mil.
Total Assets was $776.3 Mil.
Property, Plant and Equipment(Net PPE) was $114.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.1 Mil.
Selling, General & Admin. Expense(SGA) was $126.6 Mil.
Total Current Liabilities was $215.2 Mil.
Long-Term Debt was $93.1 Mil.
Net Income was 12.955 + 11.452 + 12.292 + 12.74 = $49.4 Mil.
Non Operating Income was 0.459 + 0.132 + 0.159 + 0.144 = $0.9 Mil.
Cash Flow from Operations was 40.948 + 7.025 + 32.535 + 18.328 = $98.8 Mil.
Accounts Receivable was $66.0 Mil.
Revenue was 211.079 + 204.388 + 197.481 + 198.533 = $811.5 Mil.
Gross Profit was 47.318 + 41.203 + 45.713 + 45.642 = $179.9 Mil.
Total Current Assets was $208.6 Mil.
Total Assets was $747.6 Mil.
Property, Plant and Equipment(Net PPE) was $100.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.5 Mil.
Selling, General & Admin. Expense(SGA) was $114.1 Mil.
Total Current Liabilities was $205.7 Mil.
Long-Term Debt was $123.8 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)
=(68.77 / 855.462) / (66.01 / 811.481)
=0.08038931 / 0.0813451
=0.9883

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)
=(44.316 / 811.481) / (46.129 / 855.462)
=0.22166385 / 0.21768471
=1.0183

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 - (219.904 + 114.724) / 776.313) / (1 - (208.599 + 100.545) / 747.582)
=0.56895221 / 0.58647479
=0.9701

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
=855.462 / 811.481
=1.0542

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))
=(19.49 / (19.49 + 100.545)) / (22.059 / (22.059 + 114.724))
=0.16236931 / 0.16127004
=1.0068

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)
=(126.632 / 855.462) / (114.104 / 811.481)
=0.14802762 / 0.14061204
=1.0527

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 + 215.163) / 776.313) / ((123.75 + 205.722) / 747.582)
=0.39713621 / 0.44071687
=0.9011

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
=(49.439 - 0.894 - 98.836) / 776.313
=-0.0648

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 -2.72 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 0.81130.99771.1841.02891.08541.12590.93471.60670.96260.9701
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 0.980.99451.15631.06561.05820.90951.11840.97680.99831.0527
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 -2.58-2.41-2.24-2.65-2.94-2.72-2.46-2.42-2.59-2.72

Steiner Leisure Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.8441.0581.18771.05891.06871.04180.91190.9381.09920.9883
GMI 1.01431.02951.01190.99951.02371.01941.01341.03521.00511.0183
AQI 0.92011.60671.53171.59011.670.96260.96550.9460.94580.9701
SGI 1.16291.1311.13971.15381.15971.15661.12671.0971.07541.0542
DEPI 0.92471.02671.02351.05611.01720.94440.95420.96670.95921.0068
SGAI 0.97630.97681.04481.07741.00440.99831.02121.01051.07871.0527
LVGI 0.73061.6762.00812.11352.0440.94110.95810.93330.88170.9011
TATA -0.0496-0.0341-0.0339-0.0499-0.0548-0.0626-0.0716-0.0794-0.0578-0.0648
M-score -2.65-2.42-2.45-2.65-2.59-2.59-2.79-2.81-2.59-2.72
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