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Adept Technology Inc (NAS:ADEP)
Beneish M-Score
-1.88 (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 -1.88 signals that the company is a manipulator.

ADEP' s 10-Year Beneish M-Score Range
Min: -5.47   Max: 3.51
Current: -1.88

-5.47
3.51

During the past 13 years, the highest Beneish M-Score of Adept Technology Inc was 3.51. The lowest was -5.47. And the median was -3.07.


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 * 1.0241+0.528 * 1.1019+0.404 * 0.9632+0.892 * 0.9419+0.115 * 1.1847
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0563+4.679 * 0.1066-0.327 * 0.742
=-1.88

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $10.59 Mil.
Revenue was 13.882 + 14.114 + 11.797 + 14.402 = $54.20 Mil.
Gross Profit was 5.414 + 5.837 + 5.06 + 6.443 = $22.75 Mil.
Total Current Assets was $30.02 Mil.
Total Assets was $33.76 Mil.
Property, Plant and Equipment(Net PPE) was $1.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.03 Mil.
Selling, General & Admin. Expense(SGA) was $19.71 Mil.
Total Current Liabilities was $9.35 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.41 + -1.324 + -2.357 + 0.082 = $-5.01 Mil.
Non Operating Income was -0.076 + -0.291 + -0.174 + 0.078 = $-0.46 Mil.
Cash Flow from Operations was -0.083 + -3.856 + -1.062 + -3.142 = $-8.14 Mil.
Accounts Receivable was $10.97 Mil.
Revenue was 14.26 + 15.121 + 14.588 + 13.571 = $57.54 Mil.
Gross Profit was 6.605 + 6.914 + 6.839 + 6.262 = $26.62 Mil.
Total Current Assets was $29.61 Mil.
Total Assets was $33.07 Mil.
Property, Plant and Equipment(Net PPE) was $1.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.10 Mil.
Selling, General & Admin. Expense(SGA) was $19.81 Mil.
Total Current Liabilities was $12.34 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)
=(10.585 / 54.195) / (10.974 / 57.54)
=0.19531322 / 0.1907195
=1.0241

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)
=(5.837 / 57.54) / (5.414 / 54.195)
=0.46263469 / 0.41985423
=1.1019

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 - (30.022 + 1.396) / 33.757) / (1 - (29.609 + 1.082) / 33.07)
=0.06928933 / 0.07193831
=0.9632

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
=54.195 / 57.54
=0.9419

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))
=(1.095 / (1.095 + 1.082)) / (1.03 / (1.03 + 1.396))
=0.50298576 / 0.42456719
=1.1847

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)
=(19.705 / 54.195) / (19.806 / 57.54)
=0.36359443 / 0.34421272
=1.0563

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 + 9.349) / 33.757) / ((0 + 12.343) / 33.07)
=0.27694997 / 0.37323858
=0.742

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
=(-5.009 - -0.463 - -8.143) / 33.757
=0.1066

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 -1.88 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 own currency.

Adept Technology Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 0.90771.04020.92460.87021.46090.76970.951.28890.82311.0241
GMI 0.96911.09370.87441.21730.94130.99781.02411.03530.88281.1019
AQI 0.69710.05537.28480.162115.7441.97840.83190.69960.77880.9632
SGI 1.14180.84471.24840.68331.24291.11391.15150.7071.22910.9419
DEPI 1.51941.15080.77180.81380.96341.01871.19250.78420.94371.1847
SGAI 1.1141.22810.85311.40930.70761.0970.81021.29540.85681.0479
LVGI 0.54621.0571.00960.89961.80831.08671.02830.86930.91480.742
TATA -0.0086-0.1597-0.0865-0.1788-0.077-0.18130.0255-0.1792-0.04970.1066
M-score -2.43-3.70-0.26-4.003.51-3.09-2.28-3.45-2.78-1.87

Adept Technology Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.86561.28891.19321.32771.19440.82310.97180.62490.94991.0241
GMI 1.09081.03530.98910.86580.85840.88280.91861.0131.05271.1019
AQI 0.63180.69960.75120.92080.85680.77880.82290.96480.97640.9632
SGI 0.75840.7070.8040.93241.13741.22911.19081.05270.95780.9419
DEPI 0.91350.78420.78650.80420.84570.94370.94250.93930.94641.1847
SGAI 1.22411.29541.13610.99440.8540.850.88611.01251.09611.0563
LVGI 0.72320.86931.00951.03750.92690.91480.88680.88091.07850.742
TATA -0.2148-0.1792-0.1854-0.00410.0231-0.04970.0619-0.02480.11010.1066
M-score -3.88-3.45-3.50-2.39-2.17-2.77-2.11-2.87-2.08-1.88
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