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Air T Inc (NAS:AIRT)
Beneish M-Score
-2.09 (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.

Air T Inc has a M-score of -2.09 signals that the company is a manipulator.

AIRT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.76   Max: 9.57
Current: -2.09

-3.76
9.57

During the past 13 years, the highest Beneish M-Score of Air T Inc was 9.57. The lowest was -3.76. And the median was -2.28.


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 Air T 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 * 0.9732+0.528 * 1.039+0.404 * 2.1212+0.892 * 1.0992+0.115 * 1.0221
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9518+4.679 * -0.0192-0.327 * 1.2104
=-2.09

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $17.9 Mil.
Revenue was 44.654 + 22.359 + 24.885 + 30.893 = $122.8 Mil.
Gross Profit was 9.366 + 2.931 + 2.549 + 5.236 = $20.1 Mil.
Total Current Assets was $35.9 Mil.
Total Assets was $46.1 Mil.
Property, Plant and Equipment(Net PPE) was $3.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.8 Mil.
Selling, General & Admin. Expense(SGA) was $14.7 Mil.
Total Current Liabilities was $12.0 Mil.
Long-Term Debt was $1.4 Mil.
Net Income was 3.794 + -0.736 + -0.856 + 1.448 = $3.7 Mil.
Non Operating Income was 0 + -0.02 + -0.01 + 0 = $-0.0 Mil.
Cash Flow from Operations was 0.534 + -4.515 + 0.897 + 7.651 = $4.6 Mil.
Accounts Receivable was $16.7 Mil.
Revenue was 34.625 + 21.779 + 25.467 + 29.835 = $111.7 Mil.
Gross Profit was 6.482 + 3.361 + 4.377 + 4.761 = $19.0 Mil.
Total Current Assets was $32.7 Mil.
Total Assets was $39.4 Mil.
Property, Plant and Equipment(Net PPE) was $4.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.9 Mil.
Selling, General & Admin. Expense(SGA) was $14.1 Mil.
Total Current Liabilities was $8.1 Mil.
Long-Term Debt was $1.3 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)
=(17.881 / 122.791) / (16.714 / 111.706)
=0.14562142 / 0.14962491
=0.9732

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)
=(2.931 / 111.706) / (9.366 / 122.791)
=0.16991925 / 0.16354619
=1.039

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 - (35.875 + 3.833) / 46.121) / (1 - (32.682 + 4.097) / 39.359)
=0.13904729 / 0.06555045
=2.1212

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
=122.791 / 111.706
=1.0992

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))
=(0.867 / (0.867 + 4.097)) / (0.79 / (0.79 + 3.833))
=0.17465753 / 0.17088471
=1.0221

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)
=(14.706 / 122.791) / (14.056 / 111.706)
=0.11976448 / 0.1258303
=0.9518

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)
=((1.382 + 12.024) / 46.121) / ((1.331 + 8.121) / 39.359)
=0.29067019 / 0.24014838
=1.2104

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
=(3.65 - -0.03 - 4.567) / 46.121
=-0.0192

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.

Air T Inc has a M-score of -2.09 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.

Air T Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.03491.03891.37840.44061.00172.02990.71421.13230.89670.8359
GMI 1.05530.80761.04440.98960.99471.18671.11431.08830.8791.0234
AQI 0.90480.96681.0751.12430.80641.00170.83361.00590.98240.9108
SGI 1.13610.84631.16491.15650.89421.02821.07221.15310.97781.1132
DEPI 0.94290.78781.10540.95120.89341.0182.16360.81760.83830.6349
SGAI 1.00821.17660.91440.95561.05880.96760.99840.86481.16220.9947
LVGI 0.92080.95160.93380.79890.61441.46760.97370.96021.11141.2579
TATA 0.067-0.00590.1037-0.0989-0.05950.19450.0164-0.07470.0536-0.1262
M-score -2.00-2.76-1.40-3.21-2.83-0.64-2.47-2.51-2.50-3.27

Air T Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.02651.42961.04380.89670.87431.17151.25070.83590.94420.9732
GMI 1.02451.02611.01290.8790.89920.85790.85831.02341.05221.039
AQI 1.01310.94971.08970.98241.3041.2450.93030.91082.16182.1212
SGI 1.02621.10621.12710.97781.01421.08571.06371.11321.11351.0992
DEPI 1.3371.57281.5440.83830.64960.74910.62370.63430.89041.0221
SGAI 0.97960.91530.95871.16191.11991.10831.04630.99471.01240.9518
LVGI 1.28781.54251.09191.11140.98560.88140.9851.25791.24471.2104
TATA -0.07440.08930.04850.05330.0798-0.04-0.0679-0.1264-0.0793-0.0192
M-score -2.81-1.68-2.02-2.50-2.20-2.42-2.66-3.27-2.40-2.09
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