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Adept Technology, Inc. (NAS:ADEP)
Beneish M-Score
-2.39 (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.

Adept Technology, Inc. has a M-score of -2.39 suggests that the company is not a manipulator.

ADEP' s 10-Year Beneish M-Score Range
Min: -5.58   Max: 9.65
Current: -2.39

-5.58
9.65

During the past 13 years, the highest Beneish M-Score of Adept Technology, Inc. was 9.65. The lowest was -5.58. And the median was -3.03.


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 Adept Technology, 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 * 1.3277+0.528 * 0.8658+0.404 * 0.9208+0.892 * 0.9324+0.115 * 0.8042
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9944+4.679 * -0.0041-0.327 * 1.0375
=-2.39

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $11.59 Mil.
Revenue was 14.588 + 13.571 + 13.695 + 10.943 = $52.80 Mil.
Gross Profit was 6.839 + 6.262 + 6.302 + 4.676 = $24.08 Mil.
Total Current Assets was $25.68 Mil.
Total Assets was $29.48 Mil.
Property, Plant and Equipment(Net PPE) was $1.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.20 Mil.
Selling, General & Admin. Expense(SGA) was $18.84 Mil.
Total Current Liabilities was $9.92 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.204 + -0.398 + 0.004 + -1.754 = $-1.94 Mil.
Non Operating Income was 0.157 + -0.096 + -0.041 + 0.213 = $0.23 Mil.
Cash Flow from Operations was -1.438 + 0.141 + -0.523 + -0.236 = $-2.06 Mil.
Accounts Receivable was $9.37 Mil.
Revenue was 10.808 + 11.37 + 16.972 + 17.476 = $56.63 Mil.
Gross Profit was 3.433 + 4.709 + 7.043 + 7.175 = $22.36 Mil.
Total Current Assets was $24.58 Mil.
Total Assets was $29.38 Mil.
Property, Plant and Equipment(Net PPE) was $1.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.35 Mil.
Selling, General & Admin. Expense(SGA) was $20.32 Mil.
Total Current Liabilities was $9.53 Mil.
Long-Term Debt was $0.00 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)
=(11.594 / 52.797) / (9.366 / 56.626)
=0.21959581 / 0.16540105
=1.3277

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)
=(6.262 / 56.626) / (6.839 / 52.797)
=0.39487161 / 0.45606758
=0.8658

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 - (25.682 + 1.17) / 29.475) / (1 - (24.583 + 1.954) / 29.376)
=0.08899067 / 0.09664352
=0.9208

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
=52.797 / 56.626
=0.9324

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))
=(1.346 / (1.346 + 1.954)) / (1.204 / (1.204 + 1.17))
=0.40787879 / 0.50716091
=0.8042

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)
=(18.837 / 52.797) / (20.316 / 56.626)
=0.35678164 / 0.35877512
=0.9944

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)
=((0 + 9.922) / 29.475) / ((0 + 9.531) / 29.376)
=0.33662426 / 0.32444853
=1.0375

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
=(-1.944 - 0.233 - -2.056) / 29.475
=-0.0041

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.

Adept Technology, Inc. has a M-score of -2.39 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.

Adept Technology, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 0.95180.81250.90771.04020.92460.87021.46090.76970.951.2889
GMI 0.73340.87010.96911.09370.87441.21730.94130.99781.02411.0353
AQI 0.46540.81170.69710.05537.28480.162115.7441.97840.83190.6996
SGI 1.28451.02841.14180.84471.24840.68331.24291.11391.15150.707
DEPI 0.83921.3091.51941.15080.77180.81380.96341.01871.19250.7842
SGAI 0.53481.03891.1141.22810.85311.40930.70761.0970.81021.2954
LVGI 0.94110.94390.54621.0571.00960.89961.80831.08671.02830.8693
TATA -0.00710.0115-0.0086-0.1597-0.0865-0.1788-0.077-0.18130.0255-0.1792
M-score -2.58-2.67-2.43-3.70-0.26-4.003.51-3.09-2.28-3.45

Adept Technology, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.82160.89821.1360.950.89061.00030.86561.28891.19321.3277
GMI 0.98930.94510.97571.02411.03851.11931.09081.03530.98910.8658
AQI 3.00422.89061.17120.83190.7610.59570.63180.69960.75120.9208
SGI 1.09121.04541.15531.15151.02450.92330.75840.7070.8040.9324
DEPI 1.03981.16521.181.19251.15521.03290.91350.78420.78650.8042
SGAI 1.06791.03860.85350.81020.89581.0061.22411.29541.13610.9944
LVGI 1.18731.25611.07691.02830.79140.68780.72320.86931.00951.0375
TATA -0.1724-0.1551-0.05980.02550.0021-0.1307-0.2148-0.1792-0.1854-0.0041
M-score -2.63-2.60-2.42-2.28-2.52-3.16-3.88-3.45-3.50-2.39
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