Switch to:
GuruFocus has detected 2 Warning Signs with Andersons Inc $ANDE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Andersons Inc (NAS:ANDE)
Beneish M-Score
-2.71 (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.

Andersons Inc has a M-score of -2.71 suggests that the company is not a manipulator.

ANDE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.33   Max: -0.43
Current: -2.71

-5.33
-0.43

During the past 13 years, the highest Beneish M-Score of Andersons Inc was -0.43. The lowest was -5.33. 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 Andersons 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 * 0.9835+0.528 * 0.949+0.404 * 1.0258+0.892 * 0.933+0.115 * 0.9343
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8794+4.679 * -0.0371-0.327 * 0.9363
=-2.71

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $191 Mil.
Revenue was 852.016 + 1113.055 + 859.612 + 1064.244 = $3,889 Mil.
Gross Profit was 76.458 + 103.694 + 77.015 + 97.042 = $354 Mil.
Total Current Assets was $994 Mil.
Total Assets was $2,162 Mil.
Property, Plant and Equipment(Net PPE) was $440 Mil.
Depreciation, Depletion and Amortization(DDA) was $84 Mil.
Selling, General & Admin. Expense(SGA) was $320 Mil.
Total Current Liabilities was $765 Mil.
Long-Term Debt was $366 Mil.
Net Income was -3.089 + 10.145 + 1.722 + 14.423 = $23 Mil.
Non Operating Income was 6.019 + 0.456 + 10.638 + 8.026 = $25 Mil.
Cash Flow from Operations was -229.235 + -1.761 + 235.707 + 73.492 = $78 Mil.
Accounts Receivable was $208 Mil.
Revenue was 887.879 + 1183.473 + 909.093 + 1187.704 = $4,168 Mil.
Gross Profit was 67.755 + 99.164 + 85.19 + 108.173 = $360 Mil.
Total Current Assets was $1,096 Mil.
Total Assets was $2,320 Mil.
Property, Plant and Equipment(Net PPE) was $463 Mil.
Depreciation, Depletion and Amortization(DDA) was $82 Mil.
Selling, General & Admin. Expense(SGA) was $391 Mil.
Total Current Liabilities was $894 Mil.
Long-Term Debt was $402 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)
=(190.628 / 3888.927) / (207.74 / 4168.149)
=0.04901815 / 0.04983987
=0.9835

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)
=(360.282 / 4168.149) / (354.209 / 3888.927)
=0.08643693 / 0.09108142
=0.949

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 - (993.991 + 440.395) / 2161.753) / (1 - (1096.102 + 462.661) / 2319.638)
=0.33647091 / 0.32801454
=1.0258

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
=3888.927 / 4168.149
=0.933

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))
=(81.835 / (81.835 + 462.661)) / (84.426 / (84.426 + 440.395))
=0.15029495 / 0.16086628
=0.9343

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)
=(320.461 / 3888.927) / (390.553 / 4168.149)
=0.08240345 / 0.09369939
=0.8794

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)
=((365.971 + 765.472) / 2161.753) / ((402.36 + 894.291) / 2319.638)
=0.52339143 / 0.55898851
=0.9363

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
=(23.201 - 25.139 - 78.203) / 2161.753
=-0.0371

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.

Andersons Inc has a M-score of -2.71 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.

Andersons Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.74260.81011.25340.98910.81671.08160.78331.29931.00961.2186
GMI 1.42251.35950.87491.01761.07651.13541.04210.7450.97721.0169
AQI 2.27951.04741.12360.84791.08040.92561.21161.01131.11070.9888
SGI 1.63171.46670.8671.12181.34841.1521.06310.81010.92480.9348
DEPI 0.4481.05780.91931.04471.08321.57490.96130.95390.89090.9316
SGAI 0.63270.78671.20730.87450.86980.93561.06071.40011.3330.875
LVGI 1.1240.9490.93351.06920.90921.09220.92440.93251.00080.9549
TATA 0.1163-0.2187-0.14670.1567-0.141-0.1284-0.1455-0.002-0.0802-0.0194
M-score -0.91-2.99-3.09-1.70-2.86-2.78-3.19-2.57-2.95-2.40

Andersons Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.29931.30981.47611.40681.00961.05770.9540.92361.21860.9835
GMI 0.7450.75020.83190.88820.97721.04831.04421.06771.01690.949
AQI 1.01131.10661.15411.19091.11071.04850.93381.03280.98881.0258
SGI 0.81010.83490.85230.88340.92480.93560.9340.9320.93480.933
DEPI 0.95390.87180.90020.95780.89090.94190.88160.85880.93160.9343
SGAI 1.40011.34781.28451.25281.3331.29071.23681.16510.8750.8794
LVGI 0.93250.98811.0440.99771.00081.00371.00480.92260.95490.9363
TATA -0.002-0.0881-0.09150.0219-0.0802-0.0934-0.0273-0.089-0.0194-0.0371
M-score -2.57-2.91-2.70-2.14-2.95-2.93-2.77-3.00-2.40-2.71
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK