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Universal Forest Products Inc (NAS:UFPI)
Beneish M-Score
-2.79 (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.

Universal Forest Products Inc has a M-score of -2.79 suggests that the company is not a manipulator.

UFPI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57   Max: 0.42
Current: -2.79

-3.57
0.42

During the past 13 years, the highest Beneish M-Score of Universal Forest Products Inc was 0.42. The lowest was -3.57. And the median was -2.54.


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 Universal Forest Products Inc 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 * 0.9942+0.528 * 0.8488+0.404 * 0.9796+0.892 * 1.059+0.115 * 0.9632
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0809+4.679 * -0.0631-0.327 * 0.8662
=-2.79

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $319 Mil.
Revenue was 872.093 + 682.151 + 653.601 + 762.275 = $2,970 Mil.
Gross Profit was 131.487 + 102.739 + 97.173 + 110.706 = $442 Mil.
Total Current Assets was $730 Mil.
Total Assets was $1,195 Mil.
Property, Plant and Equipment(Net PPE) was $257 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $283 Mil.
Total Current Liabilities was $239 Mil.
Long-Term Debt was $85 Mil.
Net Income was 33.398 + 19.212 + 18.9 + 25.556 = $97 Mil.
Non Operating Income was 0.11 + 0.081 + 0.091 + 0.089 = $0 Mil.
Cash Flow from Operations was 69.998 + -29.957 + 47.387 + 84.587 = $172 Mil.
Accounts Receivable was $303 Mil.
Revenue was 838.171 + 633.025 + 620.09 + 713.489 = $2,805 Mil.
Gross Profit was 112.443 + 79.582 + 72.755 + 89.586 = $354 Mil.
Total Current Assets was $679 Mil.
Total Assets was $1,140 Mil.
Property, Plant and Equipment(Net PPE) was $258 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $247 Mil.
Total Current Liabilities was $234 Mil.
Long-Term Debt was $122 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)
=(318.505 / 2970.12) / (302.538 / 2804.775)
=0.10723641 / 0.10786534
=0.9942

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)
=(354.366 / 2804.775) / (442.105 / 2970.12)
=0.12634382 / 0.14885089
=0.8488

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 - (729.705 + 256.899) / 1194.506) / (1 - (679.444 + 257.731) / 1139.666)
=0.17404852 / 0.17767574
=0.9796

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
=2970.12 / 2804.775
=1.059

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))
=(39.779 / (39.779 + 257.731)) / (41.41 / (41.41 + 256.899))
=0.13370643 / 0.13881579
=0.9632

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)
=(282.729 / 2970.12) / (247.012 / 2804.775)
=0.0951911 / 0.08806838
=1.0809

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)
=((84.53 + 239.183) / 1194.506) / ((122.303 + 234.249) / 1139.666)
=0.27100157 / 0.31285657
=0.8662

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
=(97.066 - 0.371 - 172.015) / 1194.506
=-0.0631

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.

Universal Forest Products Inc has a M-score of -2.79 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.

Universal Forest Products Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.80911.01961.09011.0381.04461.0421.13690.91961.00821.0487
GMI 0.93181.16491.07990.78181.19761.10961.00050.96460.92860.8829
AQI 1.19980.92531.20960.99611.01941.02610.90120.92370.99030.9506
SGI 0.990.94320.88830.74941.13020.96381.12761.20221.07691.0852
DEPI 0.98480.92230.91931.05841.05571.03361.06231.05830.97050.9049
SGAI 1.10841.01421.04011.17310.87020.95230.90420.91941.0441.0598
LVGI 0.84020.97090.75330.77150.99040.85781.28940.99741.0970.9742
TATA -0.0907-0.069-0.1032-0.1321-0.0151-0.0090.0344-0.0126-0.0156-0.08
M-score -3.01-2.78-2.79-3.35-2.25-2.39-2.19-2.46-2.56-2.83

Universal Forest Products Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.90690.96961.00071.00820.97040.94310.95691.04871.02750.9942
GMI 0.90920.84540.87160.93070.9470.96760.94020.88290.85870.8488
AQI 0.9310.92720.92150.99030.95550.9921.03570.95061.0490.9796
SGI 1.14761.09021.06231.07691.10911.121.11211.08521.07191.059
DEPI 1.02671.01390.96710.97050.95520.91790.90690.90490.92550.9632
SGAI 0.97531.03511.05321.04391.01971.02121.02891.05981.07371.0809
LVGI 0.94390.93231.02491.0971.1421.06750.98360.97420.75970.8662
TATA -0.0303-0.0507-0.021-0.0156-0.0053-0.0201-0.048-0.08-0.0874-0.0631
M-score -2.63-2.76-2.64-2.56-2.54-2.57-2.67-2.83-2.80-2.79
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