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United States Lime & Minerals Inc (NAS:USLM)
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.

United States Lime & Minerals Inc has a M-score of -2.79 suggests that the company is not a manipulator.

USLM' s 10-Year Beneish M-Score Range
Min: -3.86   Max: -2.07
Current: -2.79

-3.86
-2.07

During the past 13 years, the highest Beneish M-Score of United States Lime & Minerals Inc was -2.07. The lowest was -3.86. And the median was -2.81.


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 * 1.0838+0.528 * 0.9659+0.404 * 0.7399+0.892 * 1.0357+0.115 * 1.0103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.977+4.679 * -0.0815-0.327 * 0.7468
=-2.79

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $18.8 Mil.
Revenue was 36.691 + 30.109 + 36.899 + 35.172 = $138.9 Mil.
Gross Profit was 8.592 + 6.435 + 9.11 + 12.563 = $36.7 Mil.
Total Current Assets was $81.2 Mil.
Total Assets was $188.8 Mil.
Property, Plant and Equipment(Net PPE) was $107.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.4 Mil.
Selling, General & Admin. Expense(SGA) was $9.0 Mil.
Total Current Liabilities was $12.9 Mil.
Long-Term Debt was $15.4 Mil.
Net Income was 4.492 + 2.629 + 4.789 + 4.626 = $16.5 Mil.
Non Operating Income was -0.002 + 0.019 + -0.059 + 0.036 = $-0.0 Mil.
Cash Flow from Operations was 3.797 + 9.365 + 11.667 + 7.11 = $31.9 Mil.
Accounts Receivable was $16.8 Mil.
Revenue was 31.585 + 31.883 + 34.116 + 36.498 = $134.1 Mil.
Gross Profit was 6.291 + 8.123 + 7.759 + 12.054 = $34.2 Mil.
Total Current Assets was $65.8 Mil.
Total Assets was $177.9 Mil.
Property, Plant and Equipment(Net PPE) was $111.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.1 Mil.
Selling, General & Admin. Expense(SGA) was $8.9 Mil.
Total Current Liabilities was $15.2 Mil.
Long-Term Debt was $20.4 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)
=(18.832 / 138.871) / (16.776 / 134.082)
=0.13560787 / 0.12511747
=1.0838

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)
=(6.435 / 134.082) / (8.592 / 138.871)
=0.25526916 / 0.26427404
=0.9659

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 - (81.166 + 107.498) / 188.847) / (1 - (65.777 + 111.893) / 177.903)
=0.00096904 / 0.0013097
=0.7399

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
=138.871 / 134.082
=1.0357

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))
=(15.133 / (15.133 + 111.893)) / (14.37 / (14.37 + 107.498))
=0.11913309 / 0.11791446
=1.0103

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)
=(8.981 / 138.871) / (8.875 / 134.082)
=0.06467153 / 0.06619084
=0.977

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)
=((15.417 + 12.855) / 188.847) / ((20.417 + 15.248) / 177.903)
=0.14970849 / 0.20047442
=0.7468

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
=(16.536 - -0.006 - 31.939) / 188.847
=-0.0815

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 -2.79 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.

United States Lime & Minerals Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.86421.05420.78190.96290.96511.11890.91631.04790.96041.0032
GMI 1.77231.00041.01111.13710.94530.89670.90160.93731.20141.0483
AQI 0.27671.41580.69140.48460.77220.65540.83270.74950.94550.7396
SGI 1.5741.13831.46381.05521.13670.82421.13011.07530.97150.9656
DEPI 0.83831.21541.080.81730.98890.96220.9590.95410.87530.9886
SGAI 0.71350.96250.86761.0330.86621.19380.96460.99791.06931.029
LVGI 0.89391.00830.99090.87640.84540.81490.81880.83630.95580.8232
TATA -0.1011-0.0757-0.0869-0.0903-0.0656-0.1045-0.0862-0.081-0.0877-0.1001
M-score -2.39-2.46-2.76-3.01-2.75-3.19-2.90-2.83-2.88-3.00

United States Lime & Minerals Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.04790.84390.83070.85970.96041.06381.15971.1251.00321.0838
GMI 0.93730.96270.92691.05171.08171.10731.12641.01881.04260.9659
AQI 0.74950.93890.96380.93380.94550.76330.75230.75190.73960.7399
SGI 1.07531.10221.10881.01350.97150.92120.91430.96720.96561.0357
DEPI 0.95410.95380.93970.92740.87530.87940.90480.93540.98861.0103
SGAI 0.99791.00521.011.02591.06931.10171.07641.05711.0290.977
LVGI 0.83631.03991.05251.0350.95580.80810.79830.77990.82320.7468
TATA -0.081-0.1105-0.105-0.0993-0.0877-0.087-0.0728-0.0805-0.1001-0.0815
M-score -2.83-3.11-3.11-3.09-2.94-2.91-2.74-2.81-3.01-2.79
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