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Universal Forest Products Inc (NAS:UFPI)
Beneish M-Score
-2.70 (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 -2.70 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: -2.7

-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 -2.55.


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 * 1.181+0.528 * 0.8884+0.404 * 0.9514+0.892 * 1.0634+0.115 * 1.0944
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0665+4.679 * -0.0647-0.327 * 1.1931
=-2.70

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $344 Mil.
Revenue was 826.665 + 872.093 + 682.151 + 653.601 = $3,035 Mil.
Gross Profit was 118.054 + 131.487 + 102.739 + 97.173 = $449 Mil.
Total Current Assets was $791 Mil.
Total Assets was $1,311 Mil.
Property, Plant and Equipment(Net PPE) was $284 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $289 Mil.
Total Current Liabilities was $310 Mil.
Long-Term Debt was $110 Mil.
Net Income was 27.819 + 33.398 + 19.212 + 18.9 = $99 Mil.
Non Operating Income was 0.05 + 0.11 + 0.081 + 0.091 = $0 Mil.
Cash Flow from Operations was 96.336 + 69.998 + -29.957 + 47.387 = $184 Mil.
Accounts Receivable was $274 Mil.
Revenue was 762.275 + 838.171 + 633.025 + 620.09 = $2,854 Mil.
Gross Profit was 110.706 + 112.443 + 79.582 + 72.755 = $375 Mil.
Total Current Assets was $648 Mil.
Total Assets was $1,112 Mil.
Property, Plant and Equipment(Net PPE) was $255 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $255 Mil.
Total Current Liabilities was $214 Mil.
Long-Term Debt was $85 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)
=(343.771 / 3034.51) / (273.737 / 2853.561)
=0.11328715 / 0.09592821
=1.181

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)
=(375.486 / 2853.561) / (449.453 / 3034.51)
=0.13158506 / 0.14811386
=0.8884

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 - (790.787 + 284.491) / 1310.637) / (1 - (647.525 + 254.53) / 1111.918)
=0.17957604 / 0.18873964
=0.9514

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
=3034.51 / 2853.561
=1.0634

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))
=(41.082 / (41.082 + 254.53)) / (41.38 / (41.38 + 284.491))
=0.13897271 / 0.12698276
=1.0944

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)
=(289.235 / 3034.51) / (255.027 / 2853.561)
=0.09531522 / 0.08937149
=1.0665

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)
=((110.362 + 310.156) / 1310.637) / ((84.722 + 214.301) / 1111.918)
=0.32085009 / 0.26892541
=1.1931

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
=(99.329 - 0.332 - 183.764) / 1310.637
=-0.0647

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 -2.70 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.96961.00071.00820.97040.94310.95691.04871.02750.99421.181
GMI 0.84540.87160.93070.9470.96760.94020.88290.85870.84880.8884
AQI 0.92720.92150.99030.95550.9921.03570.95061.0490.97960.9514
SGI 1.09021.06231.07691.10911.121.11211.08521.07191.0591.0634
DEPI 1.01390.96710.97050.95520.91790.90690.90490.92550.96321.0944
SGAI 1.03511.05321.04391.01971.02121.02891.05981.07371.08091.0665
LVGI 0.93231.02491.0971.1421.06750.98360.97420.75970.86621.1931
TATA -0.0507-0.021-0.0156-0.0053-0.0201-0.048-0.08-0.0874-0.0631-0.0647
M-score -2.76-2.64-2.56-2.54-2.57-2.67-2.83-2.80-2.79-2.70
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