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Air T Inc (NAS:AIRT)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

AIRT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.79   Max: 9.56
Current: -2.75

-3.79
9.56

During the past 13 years, the highest Beneish M-Score of Air T Inc was 9.56. The lowest was -3.79. And the median was -2.27.


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 * 0.785+0.528 * 0.7809+0.404 * 0.7719+0.892 * 1.3865+0.115 * 0.6161
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2756+4.679 * 0.0011-0.327 * 1.379
=-2.75

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $11.2 Mil.
Revenue was 30.493 + 34.581 + 46.619 + 44.654 = $156.3 Mil.
Gross Profit was 7.264 + 3.596 + 10.308 + 9.366 = $30.5 Mil.
Total Current Assets was $39.5 Mil.
Total Assets was $50.4 Mil.
Property, Plant and Equipment(Net PPE) was $4.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General & Admin. Expense(SGA) was $26.2 Mil.
Total Current Liabilities was $19.1 Mil.
Long-Term Debt was $3.3 Mil.
Net Income was -3.676 + -1.086 + 2.971 + 3.794 = $2.0 Mil.
Non Operating Income was -1.224 + 0.198 + 0.004 + 0 = $-1.0 Mil.
Cash Flow from Operations was -4.758 + 0.226 + 6.969 + 0.534 = $3.0 Mil.
Accounts Receivable was $10.3 Mil.
Revenue was 22.359 + 24.885 + 30.893 + 34.625 = $112.8 Mil.
Gross Profit was 2.931 + 2.549 + 5.236 + 6.482 = $17.2 Mil.
Total Current Assets was $33.8 Mil.
Total Assets was $43.1 Mil.
Property, Plant and Equipment(Net PPE) was $2.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.8 Mil.
Selling, General & Admin. Expense(SGA) was $14.8 Mil.
Total Current Liabilities was $8.9 Mil.
Long-Term Debt was $5.0 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)
=(11.231 / 156.347) / (10.319 / 112.762)
=0.07183381 / 0.09151132
=0.785

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)
=(17.198 / 112.762) / (30.534 / 156.347)
=0.15251592 / 0.19529636
=0.7809

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 - (39.546 + 4.813) / 50.374) / (1 - (33.848 + 2.598) / 43.116)
=0.11940684 / 0.15469895
=0.7719

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
=156.347 / 112.762
=1.3865

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))
=(0.82 / (0.82 + 2.598)) / (3.069 / (3.069 + 4.813))
=0.23990638 / 0.38936818
=0.6161

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)
=(26.169 / 156.347) / (14.796 / 112.762)
=0.16737769 / 0.13121442
=1.2756

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)
=((3.321 + 19.11) / 50.374) / ((4.981 + 8.941) / 43.116)
=0.44528924 / 0.32289637
=1.379

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
=(2.003 - -1.022 - 2.971) / 50.374
=0.0011

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 -2.75 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.

Air T Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 1.03891.37840.44061.00172.02990.71421.13230.89670.83590.9766
GMI 0.80761.04440.98960.99471.18671.11431.08830.8791.02340.8888
AQI 0.96681.0751.12430.80641.00170.83361.00590.98240.91043.2429
SGI 0.84631.16491.15650.89421.02821.07221.15310.97781.11321.3212
DEPI 0.78781.10540.95120.89341.0182.16360.81760.83830.63511.1602
SGAI 1.17660.91440.95561.05880.96760.99840.86481.16220.99470.9653
LVGI 0.95160.93380.79890.61441.46760.97370.96021.11141.25790.989
TATA -0.00940.1037-0.0989-0.05950.19450.0164-0.07470.0536-0.10020.0293
M-score -2.78-1.40-3.21-2.83-0.64-2.47-2.51-2.50-3.15-1.20

Air T Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.89670.87431.17151.25070.83590.94420.97320.91430.97660.785
GMI 0.8790.89920.85790.85831.02341.05221.0390.95010.88890.7809
AQI 0.98241.3041.2450.93030.91042.16182.12122.77813.24290.7719
SGI 0.97781.01421.08571.06371.11321.11351.09921.22841.32121.3865
DEPI 0.83830.64960.74910.62370.63450.89041.02211.48251.16050.6161
SGAI 1.16191.11991.10831.04630.99471.01240.95180.99390.96541.2756
LVGI 1.11140.98560.88140.9851.25791.24471.21040.97890.9891.379
TATA 0.05360.08-0.0397-0.0677-0.1003-0.0530.00530.04920.02970.0011
M-score -2.50-2.20-2.42-2.66-3.15-2.28-1.98-1.37-1.20-2.75
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