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Universal Forest Products Inc (NAS:UFPI)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

UFPI' s 10-Year Beneish M-Score Range
Min: -3.61   Max: 0.55
Current: -2.75

-3.61
0.55

During the past 13 years, the highest Beneish M-Score of Universal Forest Products Inc was 0.55. The lowest was -3.61. And the median was -2.48.


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 * 0.9696+0.528 * 0.8454+0.404 * 0.9272+0.892 * 1.0902+0.115 * 1.0139
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0351+4.679 * -0.0497-0.327 * 0.9323
=-2.75

* 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 $286 Mil.
Revenue was 772.752 + 553.998 + 525.737 + 651.78 = $2,504 Mil.
Gross Profit was 96.988 + 66.012 + 64.868 + 78.289 = $306 Mil.
Total Current Assets was $591 Mil.
Total Assets was $1,022 Mil.
Property, Plant and Equipment(Net PPE) was $247 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General & Admin. Expense(SGA) was $216 Mil.
Total Current Liabilities was $204 Mil.
Long-Term Debt was $95 Mil.
Net Income was 21.789 + 7.216 + 7.995 + 14.091 = $51 Mil.
Non Operating Income was 0.078 + 0.051 + 0.049 + 0.018 = $0 Mil.
Cash Flow from Operations was 77.536 + -54.732 + 5.623 + 73.248 = $102 Mil.
Accounts Receivable was $271 Mil.
Revenue was 738.436 + 554.494 + 470.763 + 533.366 = $2,297 Mil.
Gross Profit was 80.216 + 57.818 + 44.141 + 55.227 = $237 Mil.
Total Current Assets was $555 Mil.
Total Assets was $977 Mil.
Property, Plant and Equipment(Net PPE) was $234 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General & Admin. Expense(SGA) was $191 Mil.
Total Current Liabilities was $165 Mil.
Long-Term Debt was $142 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)
=(286.422 / 2504.267) / (270.949 / 2297.059)
=0.11437359 / 0.11795474
=0.9696

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)
=(66.012 / 2297.059) / (96.988 / 2504.267)
=0.10335041 / 0.12225414
=0.8454

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 - (591.4 + 247.453) / 1021.879) / (1 - (554.746 + 233.773) / 977.312)
=0.17910731 / 0.19317577
=0.9272

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
=2504.267 / 2297.059
=1.0902

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))
=(33.226 / (33.226 + 233.773)) / (34.619 / (34.619 + 247.453))
=0.12444241 / 0.12273108
=1.0139

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)
=(215.959 / 2504.267) / (191.365 / 2297.059)
=0.08623641 / 0.0833087
=1.0351

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)
=((95.094 + 204.398) / 1021.879) / ((142.473 + 164.747) / 977.312)
=0.29307971 / 0.31435202
=0.9323

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
=(51.091 - 0.196 - 101.675) / 1021.879
=-0.0497

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 -2.75 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.85361.11120.80911.01961.13971.08890.95241.07051.15770.89
GMI 1.12510.90470.93181.16491.07990.78181.19761.10961.00050.9646
AQI 0.90740.93661.19980.92531.20960.99611.01941.02610.90120.9237
SGI 1.2921.09710.990.94320.88830.74941.13020.96381.12761.2022
DEPI 0.91310.92930.98480.92230.91931.05841.05571.03361.06231.0583
SGAI 0.87561.06681.10841.01421.04011.17310.87020.95230.90420.9194
LVGI 0.95330.97350.84020.97090.75330.77150.99040.85781.28940.9974
TATA -0.0058-0.0091-0.0907-0.069-0.1032-0.1321-0.0151-0.0090.0344-0.0114
M-score -2.33-2.42-3.01-2.78-2.74-3.30-2.33-2.36-2.17-2.48

Universal Forest Products Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.04060.94770.99331.15771.05291.08021.04440.890.90690.9696
GMI 1.04050.9460.97981.00051.05171.13351.05550.96240.90920.8454
AQI 1.01830.99940.97720.90120.89580.88630.89550.92370.9310.9272
SGI 1.00381.08441.12771.12761.13751.1831.2041.20221.14761.0902
DEPI 1.03591.03511.05191.06231.0881.10161.11091.05831.02671.0139
SGAI 0.920.91160.89790.90580.91340.87560.88980.91780.97531.0351
LVGI 0.89680.9561.01731.28941.25461.2651.19910.99740.94390.9323
TATA -0.076-0.02830.01490.03440.05210.0355-0.007-0.0114-0.0182-0.0497
M-score -2.71-2.58-2.30-2.17-2.14-2.11-2.34-2.48-2.57-2.75
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