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GuruFocus has detected 6 Warning Signs with United States Lime & Minerals Inc $USLM.
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United States Lime & Minerals Inc (NAS:USLM)
Beneish M-Score
-2.98 (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.

United States Lime & Minerals Inc has a M-score of -2.98 suggests that the company is not a manipulator.

USLM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Max: -2.14
Current: -2.98

-3.19
-2.14

During the past 13 years, the highest Beneish M-Score of United States Lime & Minerals Inc was -2.14. The lowest was -3.19. And the median was -2.88.


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 United States Lime & Minerals 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 * 0.9921+0.528 * 0.9237+0.404 * 0.8298+0.892 * 1.0645+0.115 * 0.9992
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9417+4.679 * -0.0974-0.327 * 0.9741
=-2.98

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $16.8 Mil.
Revenue was 34.166 + 38.65 + 32.88 + 33.586 = $139.3 Mil.
Gross Profit was 7.434 + 10.569 + 7.241 + 7.848 = $33.1 Mil.
Total Current Assets was $105.0 Mil.
Total Assets was $210.2 Mil.
Property, Plant and Equipment(Net PPE) was $105.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.1 Mil.
Selling, General & Admin. Expense(SGA) was $9.4 Mil.
Total Current Liabilities was $9.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 3.92 + 6.081 + 3.687 + 4.066 = $17.8 Mil.
Non Operating Income was 0.146 + 0.115 + 0.08 + 0.043 = $0.4 Mil.
Cash Flow from Operations was 11.977 + 10.953 + 7.035 + 7.882 = $37.8 Mil.
Accounts Receivable was $15.9 Mil.
Revenue was 31.294 + 37.029 + 32.45 + 30.064 = $130.8 Mil.
Gross Profit was 5.47 + 10.367 + 7.013 + 5.864 = $28.7 Mil.
Total Current Assets was $92.0 Mil.
Total Assets was $196.5 Mil.
Property, Plant and Equipment(Net PPE) was $104.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.0 Mil.
Selling, General & Admin. Expense(SGA) was $9.4 Mil.
Total Current Liabilities was $8.7 Mil.
Long-Term Debt was $0.0 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)
=(16.781 / 139.282) / (15.889 / 130.837)
=0.12048219 / 0.12144118
=0.9921

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)
=(28.714 / 130.837) / (33.092 / 139.282)
=0.21946391 / 0.23758993
=0.9237

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 - (105.036 + 104.981) / 210.159) / (1 - (91.961 + 104.378) / 196.499)
=0.00067568 / 0.00081425
=0.8298

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
=139.282 / 130.837
=1.0645

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))
=(16.033 / (16.033 + 104.378)) / (16.141 / (16.141 + 104.981))
=0.13315229 / 0.13326233
=0.9992

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)
=(9.402 / 139.282) / (9.379 / 130.837)
=0.06750334 / 0.07168462
=0.9417

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)
=((0 + 9.108) / 210.159) / ((0 + 8.742) / 196.499)
=0.04333862 / 0.04448878
=0.9741

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
=(17.754 - 0.384 - 37.847) / 210.159
=-0.0974

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.

United States Lime & Minerals Inc has a M-score of -2.98 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.

United States Lime & Minerals Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.96290.96511.11890.91631.04790.96041.00321.10471.04320.9921
GMI 1.13710.94530.89670.90160.93731.20141.04830.93781.11880.9237
AQI 0.48460.77220.65540.83270.74950.94550.73960.69731.1230.8298
SGI 1.05521.13670.82421.13011.07530.97150.96561.12020.87321.0645
DEPI 0.81730.98890.96220.9590.95410.87530.98860.97620.90690.9992
SGAI 1.0330.86621.19380.96460.99791.06931.0290.92571.15850.9417
LVGI 0.87640.84540.81490.81880.83630.95580.82320.75480.35640.9741
TATA -0.0903-0.0656-0.1045-0.0862-0.081-0.0877-0.1001-0.0637-0.0969-0.0974
M-score -3.01-2.75-3.19-2.90-2.83-2.88-3.00-2.64-2.72-2.98

United States Lime & Minerals Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.10470.82530.98011.04541.04321.11971.05750.99810.99210
GMI 0.93781.00211.08481.05941.11881.0410.97531.01120.92370.968
AQI 0.69730.69090.84850.87711.1231.18231.01350.98330.82980.8102
SGI 1.12021.03130.96220.93360.87320.93820.98391.01091.06451.0557
DEPI 0.97620.95130.94230.92760.90690.92150.93850.96820.99921.2945
SGAI 0.92571.02451.08171.10041.15851.05370.99910.96770.94170.7071
LVGI 0.75480.75490.22220.29930.35640.31711.01080.89980.97411.191
TATA -0.0637-0.0929-0.0811-0.0863-0.0969-0.0906-0.0917-0.0958-0.0974-0.057
M-score -2.64-3.10-2.69-2.72-2.72-2.55-2.89-2.89-2.98-3.69
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