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# Spire Beneish M-Score

: 0.00 (As of Today)
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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.

Spire has a M-score of signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of Spire was 0.00. The lowest was -2.99. And the median was -2.42.

## Spire Beneish M-Score Historical Data

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

 Spire Annual Data Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Beneish M-Score     -2.70 -2.59 -2.42 0.00 0.00

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Spire Beneish M-Score Distribution

* The bar in red indicates where Spire's Beneish M-Score falls into.

## Spire Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Spire 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 * + 0.528 * + 0.404 * + 0.892 * + 0.115 * - 0.172 * SGAI + 4.679 * TATA - 0.327 * LVGI - 0.172 * + 4.679 * - 0.327 * =

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

 This Year (Dec19) TTM: Last Year (Dec18) TTM: Accounts Receivable was \$282 Mil. Revenue was 566.9 + 225.6 + 321.3 + 803.5 = \$1,917 Mil. Gross Profit was 186.6 + 46 + 88.1 + 311.3 = \$632 Mil. Total Current Assets was \$776 Mil. Total Assets was \$7,961 Mil. Property, Plant and Equipment(Net PPE) was \$4,951 Mil. Depreciation, Depletion and Amortization(DDA) was \$185 Mil. Selling, General, & Admin. Expense(SGA) was \$0 Mil. Total Current Liabilities was \$1,253 Mil. Long-Term Debt & Capital Lease Obligation was \$2,484 Mil. Net Income was 67 + -34.3 + -3 + 154.6 = \$184 Mil. Non Operating Income was 5.7 + 5.9 + 6.4 + 6.1 = \$24 Mil. Cash Flow from Operations was 64.5 + 10.3 + 143.1 + 227.1 = \$445 Mil. Accounts Receivable was \$339 Mil. Revenue was 602 + 239.2 + 350.6 + 813.4 = \$2,005 Mil. Gross Profit was 188 + 50.5 + 132.9 + 249.2 = \$621 Mil. Total Current Assets was \$905 Mil. Total Assets was \$7,232 Mil. Property, Plant and Equipment(Net PPE) was \$4,300 Mil. (DDA) was \$172 Mil. Selling, General, & Admin. Expense(SGA) was \$0 Mil. Total Current Liabilities was \$1,563 Mil. Long-Term Debt & Capital Lease Obligation was \$1,992 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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) = (282 / 1917.3) / (339.2 / 2005.2) = 0.14708183 / 0.16916018 =

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) = (620.6 / 2005.2) / (632 / 1917.3) = 0.30949531 / 0.32963021 =

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 Property, Plant and Equipment to Total Assets.

 AQI = (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) = (1 - (776.4 + 4951) / 7961) / (1 - (905.3 + 4299.8) / 7232.2) = 0.28056777 / 0.28028816 =

4. SGI = Sales Growth Index

Ratio of Revenue 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 = 1917.3 / 2005.2 =

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) = (172.2 / (172.2 + 4299.8)) / (185 / (185 + 4951)) = 0.03850626 / 0.03602025 =

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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) = (0 / 1917.3) / (0 / 2005.2) = 0 / 0 =

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) = ((2484.4 + 1252.5) / 7961) / ((1992 + 1563.4) / 7232.2) = 0.46940083 / 0.49160698 =

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 = (184.3 - 24.1 - 445) / 7961 = -0.0358

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.

Spire has a M-score of signals that the company is likely to be a manipulator.

## Spire Beneish M-Score Related Terms 