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Wausau Paper Corp (NYSE:WPP)
Beneish M-Score
0.00 (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.

Wausau Paper Corp has a M-score of -2.61 suggests that the company is not a manipulator.

During the past 13 years, the highest Beneish M-Score of Wausau Paper Corp was 0.00. The lowest was 0.00. And the median was 0.00.


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 Wausau Paper Corp 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 * 1.0565+0.528 * 0.7849+0.404 * 1.0822+0.892 * 1.0202+0.115 * 0.7264
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8323+4.679 * -0.0271-0.327 * 0.9774
=-2.61

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $29.4 Mil.
Revenue was 95.446 + 90.894 + 84.181 + 89.88 = $360.4 Mil.
Gross Profit was 18.976 + 17.406 + 12.881 + 16.14 = $65.4 Mil.
Total Current Assets was $76.2 Mil.
Total Assets was $448.6 Mil.
Property, Plant and Equipment(Net PPE) was $277.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $41.6 Mil.
Selling, General & Admin. Expense(SGA) was $45.8 Mil.
Total Current Liabilities was $66.0 Mil.
Long-Term Debt was $169.6 Mil.
Net Income was 1.6 + 2.091 + 0.442 + -0.308 = $3.8 Mil.
Non Operating Income was -0.017 + -0.015 + 0.001 + -0.016 = $-0.0 Mil.
Cash Flow from Operations was 7.553 + 7.951 + -3.533 + 4.038 = $16.0 Mil.
Accounts Receivable was $27.3 Mil.
Revenue was 95.423 + 89.214 + 77.507 + 91.104 = $353.2 Mil.
Gross Profit was 15.41 + 11.56 + 8.209 + 15.14 = $50.3 Mil.
Total Current Assets was $78.6 Mil.
Total Assets was $463.2 Mil.
Property, Plant and Equipment(Net PPE) was $294.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.8 Mil.
Selling, General & Admin. Expense(SGA) was $53.9 Mil.
Total Current Liabilities was $77.7 Mil.
Long-Term Debt was $171.2 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)
=(29.417 / 360.401) / (27.29 / 353.248)
=0.08162297 / 0.07725451
=1.0565

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)
=(50.319 / 353.248) / (65.403 / 360.401)
=0.14244667 / 0.18147286
=0.7849

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 - (76.177 + 277.417) / 448.558) / (1 - (78.561 + 294.04) / 463.219)
=0.21170952 / 0.19562669
=1.0822

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
=360.401 / 353.248
=1.0202

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))
=(30.788 / (30.788 + 294.04)) / (41.632 / (41.632 + 277.417))
=0.09478247 / 0.13048779
=0.7264

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)
=(45.758 / 360.401) / (53.887 / 353.248)
=0.12696413 / 0.15254722
=0.8323

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)
=((169.579 + 65.975) / 448.558) / ((171.16 + 77.714) / 463.219)
=0.5251361 / 0.53727071
=0.9774

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
=(3.825 - -0.047 - 16.009) / 448.558
=-0.0271

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.

Wausau Paper Corp has a M-score of -2.61 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.

Wausau Paper Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.98850.96851.02710.96651.25480.84331.78840.44580.7892
GMI 2.35450.46561.64480.84170.90690.89510.8561.30150.9761
AQI 1.14450.80411.66390.79381.05131.55950.85791.48721.3943
SGI 1.05421.0831.0440.96080.78691.01340.41821.01281.0099
DEPI 0.62781.42030.59221.270300.98571.3990.43531.7284
SGAI 0.93121.0260.97531.10161.14880.89552.19270.82311.0262
LVGI 1.07661.0451.02381.16841.00261.07741.01081.10351.1305
TATA -0.046-0.0259-0.0762-0.0190.0206-0.1259-0.0502-0.19850.0042
M-score -1.94-2.89-2.21-2.84-2.51-3.04-2.80-3.62-2.46

Wausau Paper Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.34430.97880.99740.78920.96490.99121.0565
GMI 1.27961.09381.00580.97610.85690.80510.7849
AQI 1.31620.8420.94911.39431.31441.24121.0822
SGI 1.02161.02911.02561.00991.0311.03121.0202
DEPI 00000.26390.50830.7264
SGAI 0.80620.93540.99221.02620.98160.80680.8323
LVGI 1.0141.08671.2871.13051.15281.1250.9774
TATA -0.1561-0.0204-0.01590.00420.00760.0069-0.0271
M-score -3.61-2.72-2.76-2.66-2.53-2.50-2.61
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