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Adept Technology Inc (NAS:ADEP)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

ADEP' s 10-Year Beneish M-Score Range
Min: -6.17   Max: 9.65
Current: -2.78

-6.17
9.65

During the past 13 years, the highest Beneish M-Score of Adept Technology Inc was 9.65. The lowest was -6.17. And the median was -2.97.


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 * 0.8231+0.528 * 0.8828+0.404 * 0.7788+0.892 * 1.2291+0.115 * 0.9437
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8568+4.679 * -0.0497-0.327 * 0.9148
=-2.78

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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 $19.97 Mil.
Total Current Liabilities was $12.34 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.41 + 0.265 + 0.204 + -0.398 = $-0.34 Mil.
Non Operating Income was 0.151 + 0.14 + 0.157 + -0.096 = $0.35 Mil.
Cash Flow from Operations was 1.243 + 1.008 + -1.438 + 0.141 = $0.95 Mil.
Accounts Receivable was $10.85 Mil.
Revenue was 13.695 + 10.943 + 10.808 + 11.37 = $46.82 Mil.
Gross Profit was 6.302 + 4.676 + 3.433 + 4.709 = $19.12 Mil.
Total Current Assets was $25.73 Mil.
Total Assets was $30.03 Mil.
Property, Plant and Equipment(Net PPE) was $1.53 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.38 Mil.
Selling, General & Admin. Expense(SGA) was $18.96 Mil.
Total Current Liabilities was $12.25 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)
=(10.974 / 57.54) / (10.848 / 46.816)
=0.1907195 / 0.23171565
=0.8231

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)
=(6.914 / 46.816) / (6.605 / 57.54)
=0.40840738 / 0.46263469
=0.8828

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 - (29.609 + 1.082) / 33.07) / (1 - (25.734 + 1.525) / 30.033)
=0.07193831 / 0.09236507
=0.7788

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
=57.54 / 46.816
=1.2291

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))
=(1.378 / (1.378 + 1.525)) / (1.095 / (1.095 + 1.082))
=0.47468136 / 0.50298576
=0.9437

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)
=(19.965 / 57.54) / (18.958 / 46.816)
=0.34697602 / 0.40494703
=0.8568

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 + 12.343) / 33.07) / ((0 + 12.254) / 30.033)
=0.37323858 / 0.40801785
=0.9148

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
=(-0.339 - 0.352 - 0.954) / 33.07
=-0.0497

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 -2.78 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 1.11630.81250.90771.04020.92460.87021.46090.76970.951.2889
GMI 0.60030.87010.96911.09370.87441.21730.94130.99781.02411.0353
AQI 0.46540.81170.69710.05537.28480.162110.38852.99830.83190.6996
SGI 1.09521.02841.14180.84471.24840.68331.24291.11391.15150.707
DEPI 0.83921.3091.51941.15080.77180.81380.96341.01871.19250.7842
SGAI 0.59261.03891.1141.22810.85311.40930.70761.0970.81021.2954
LVGI 0.94080.94390.54621.0571.00960.89961.86191.05541.05540.8471
TATA -0.00710.0115-0.0086-0.1597-0.0865-0.1788-0.0792-0.18130.0255-0.1792
M-score -2.68-2.67-2.43-3.70-0.26-4.001.32-2.67-2.29-3.44

Adept Technology Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.1360.950.89061.00030.86561.28891.19321.32771.19440.8231
GMI 0.97571.02411.03851.11931.09081.03530.98910.86580.85840.8828
AQI 1.17120.83190.7610.59570.63180.69960.75120.92080.85680.7788
SGI 1.15531.15151.02450.92330.75840.7070.8040.93241.13741.2291
DEPI 1.181.19251.15521.03290.91350.78420.78650.80420.84570.9437
SGAI 0.85350.81020.89581.0061.22411.29541.13610.99440.8540.8568
LVGI 1.07691.05540.79140.68780.72320.84711.00951.03750.92690.9148
TATA -0.05980.02550.0021-0.1307-0.2148-0.1792-0.1854-0.00410.0231-0.0497
M-score -2.42-2.29-2.52-3.16-3.88-3.44-3.50-2.39-2.17-2.78
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