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Adept Technology Inc (NAS:ADEP)
Beneish M-Score
-2.11 (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 -2.11 signals that the company is a manipulator.

ADEP' s 10-Year Beneish M-Score Range
Min: -5.59   Max: 9.65
Current: -2.11

-5.59
9.65

During the past 13 years, the highest Beneish M-Score of Adept Technology Inc was 9.65. The lowest was -5.59. And the median was -2.94.


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 * 0.9718+0.528 * 0.9186+0.404 * 0.8229+0.892 * 1.1908+0.115 * 0.9425
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8932+4.679 * 0.0619-0.327 * 0.8868
=-2.11

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $11.10 Mil.
Revenue was 14.402 + 14.26 + 15.121 + 14.588 = $58.37 Mil.
Gross Profit was 6.443 + 6.605 + 6.914 + 6.839 = $26.80 Mil.
Total Current Assets was $28.10 Mil.
Total Assets was $31.40 Mil.
Property, Plant and Equipment(Net PPE) was $0.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.08 Mil.
Selling, General & Admin. Expense(SGA) was $19.88 Mil.
Total Current Liabilities was $10.62 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.082 + -0.41 + 0.265 + 0.204 = $0.14 Mil.
Non Operating Income was 0.078 + 0.151 + 0.14 + 0.157 = $0.53 Mil.
Cash Flow from Operations was -3.142 + 1.243 + 1.008 + -1.438 = $-2.33 Mil.
Accounts Receivable was $9.59 Mil.
Revenue was 13.571 + 13.695 + 10.943 + 10.808 = $49.02 Mil.
Gross Profit was 6.262 + 6.302 + 4.676 + 3.433 = $20.67 Mil.
Total Current Assets was $25.86 Mil.
Total Assets was $29.87 Mil.
Property, Plant and Equipment(Net PPE) was $1.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.29 Mil.
Selling, General & Admin. Expense(SGA) was $18.69 Mil.
Total Current Liabilities was $11.39 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)
=(11.098 / 58.371) / (9.59 / 49.017)
=0.19012866 / 0.19564641
=0.9718

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)
=(6.605 / 49.017) / (6.443 / 58.371)
=0.42175164 / 0.45914924
=0.9186

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 - (28.095 + 0.986) / 31.404) / (1 - (25.855 + 1.329) / 29.869)
=0.07397147 / 0.08989253
=0.8229

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
=58.371 / 49.017
=1.1908

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))
=(1.293 / (1.293 + 1.329)) / (1.082 / (1.082 + 0.986))
=0.49313501 / 0.52321083
=0.9425

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)
=(19.879 / 58.371) / (18.689 / 49.017)
=0.34056295 / 0.38127588
=0.8932

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 + 10.62) / 31.404) / ((0 + 11.39) / 29.869)
=0.33817348 / 0.38133182
=0.8868

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
=(0.141 - 0.526 - -2.329) / 31.404
=0.0619

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 -2.11 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 0.81250.90771.04020.92460.87021.46090.76970.951.28890.8231
GMI 0.87010.96911.09370.87441.21730.94130.99781.02411.03530.8828
AQI 0.81170.69710.05537.28480.162115.7441.97840.83190.69960.7788
SGI 1.02841.14180.84471.24840.68331.24291.11391.15150.7071.2291
DEPI 1.3091.51941.15080.77180.81380.96341.01871.19250.78420.9437
SGAI 1.03891.1141.22810.85311.40930.70761.0970.81021.29540.8568
LVGI 0.94390.54621.0571.00960.89961.80831.08671.02830.86930.9148
TATA 0.0115-0.0086-0.1597-0.0865-0.1788-0.077-0.18130.0255-0.1792-0.0497
M-score -2.67-2.43-3.70-0.26-4.003.51-3.09-2.28-3.45-2.78

Adept Technology Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.950.89061.00030.86561.28891.19321.32771.19440.82310.9718
GMI 1.02411.03851.11931.09081.03530.98910.86580.85840.88280.9186
AQI 0.83190.7610.59570.63180.69960.75120.92080.85680.77880.8229
SGI 1.15151.02450.92330.75840.7070.8040.93241.13741.22911.1908
DEPI 1.19251.15521.03290.91350.78420.78650.80420.84570.94370.9425
SGAI 0.81020.89581.0061.22411.29541.13610.99440.8540.85680.8932
LVGI 1.02830.79140.68780.72320.86931.00951.03750.92690.91480.8868
TATA 0.02550.0021-0.1307-0.2148-0.1792-0.1854-0.00410.0231-0.04970.0619
M-score -2.28-2.52-3.16-3.88-3.45-3.50-2.39-2.17-2.78-2.11
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