Switch to:
GuruFocus has detected 4 Warning Signs with SINA Corp $SINA.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
SINA Corp (NAS:SINA)
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.

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

During the past 13 years, the highest Beneish M-Score of SINA Corp was 0.00. The lowest was -3.04. And the median was -2.01.


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 SINA 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 * +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 (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $217 Mil.
Revenue was 278.065 + 313.424 + 274.875 + 243.962 = $1,110 Mil.
Gross Profit was 191.493 + 218.866 + 184.548 + 155.045 = $750 Mil.
Total Current Assets was $2,710 Mil.
Total Assets was $4,407 Mil.
Property, Plant and Equipment(Net PPE) was $242 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $365 Mil.
Total Current Liabilities was $979 Mil.
Long-Term Debt was $153 Mil.
Net Income was 38.524 + 19.922 + 146.518 + 43.327 = $248 Mil.
Non Operating Income was 19.026 + 23.561 + 136.386 + 28.735 = $208 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $176 Mil.
Revenue was 198.675 + 256.19 + 226.294 + 213.598 = $895 Mil.
Gross Profit was 117.781 + 167.136 + 143.277 + 127.606 = $556 Mil.
Total Current Assets was $2,672 Mil.
Total Assets was $4,346 Mil.
Property, Plant and Equipment(Net PPE) was $45 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $316 Mil.
Total Current Liabilities was $1,333 Mil.
Long-Term Debt was $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)
=(216.978 / 1110.326) / (176.299 / 894.757)
=0.19541828 / 0.19703562
=

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)
=(555.8 / 894.757) / (749.952 / 1110.326)
=0.62117424 / 0.67543406
=

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 - (2709.525 + 241.674) / 4407.349) / (1 - (2672.275 + 45.235) / 4345.807)
=0.33039135 / 0.37468231
=

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
=1110.326 / 894.757
=

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))
=(0 / (0 + 45.235)) / (0 / (0 + 241.674))
=0 / 0
=

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)
=(364.812 / 1110.326) / (316.247 / 894.757)
=0.32856296 / 0.35344457
=

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)
=((153.092 + 979.257) / 4407.349) / ((0 + 1332.72) / 4345.807)
=0.25692293 / 0.30666801
=

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
=(248.291 - 207.708 - 0) / 4407.349
=0.0092

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.

SINA Corp has a M-score of signals that the company is likely to 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.

SINA Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.08930.92970.9141.13951.04391.0969
GMI 1.0191.03711.050.97131.051.0421
AQI 0.79850.84113.56890.87220.96780.9995
SGI 1.15631.50161.03631.05131.19921.0963
DEPI 7.47881.11270.16872.45579.37295.1804
SGAI 0.86650.97331.26250.64741.37610.9987
LVGI 0.89420.94080.58981.09020.95171.0612
TATA 0.08640.08220.0150.0583-0.01770.0036
M-score -1.12-1.72-1.40-1.90-1.42-1.81

SINA Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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