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Anaren, Inc. (NAS:ANEN)
Beneish M-Score
0.00 (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.

Anaren, Inc. has a M-score of -2.82 suggests that the company is not a manipulator.

ANEN' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Anaren, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Anaren, 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 * 0.9055+0.528 * 1.015+0.404 * 0.7966+0.892 * 1.0781+0.115 * 1.1152
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9182+4.679 * -0.0729-0.327 * 0.8042
=-2.82

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $31.5 Mil.
Revenue was 41.809 + 38.543 + 42.336 + 38.974 = $161.7 Mil.
Gross Profit was 15.136 + 13.887 + 15.124 + 14.256 = $58.4 Mil.
Total Current Assets was $134.5 Mil.
Total Assets was $224.8 Mil.
Property, Plant and Equipment(Net PPE) was $41.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.3 Mil.
Selling, General & Admin. Expense(SGA) was $27.6 Mil.
Total Current Liabilities was $19.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 2.765 + 2.983 + 3.356 + 5.333 = $14.4 Mil.
Non Operating Income was 0.123 + 0 + 0 + 0 = $0.1 Mil.
Cash Flow from Operations was 7.864 + 3.51 + 10.889 + 8.439 = $30.7 Mil.
Accounts Receivable was $32.3 Mil.
Revenue was 38.002 + 39.062 + 38.172 + 34.717 = $150.0 Mil.
Gross Profit was 15.015 + 14.415 + 13.867 + 11.69 = $55.0 Mil.
Total Current Assets was $112.0 Mil.
Total Assets was $211.3 Mil.
Property, Plant and Equipment(Net PPE) was $41.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.5 Mil.
Selling, General & Admin. Expense(SGA) was $27.8 Mil.
Total Current Liabilities was $14.3 Mil.
Long-Term Debt was $8.0 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)
=(31.515 / 161.662) / (32.283 / 149.953)
=0.19494377 / 0.21528746
=0.9055

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)
=(13.887 / 149.953) / (15.136 / 161.662)
=0.3666949 / 0.3612661
=1.015

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 - (134.53 + 41.053) / 224.824) / (1 - (112.047 + 41.167) / 211.315)
=0.21902021 / 0.27494972
=0.7966

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
=161.662 / 149.953
=1.0781

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))
=(9.531 / (9.531 + 41.167)) / (8.324 / (8.324 + 41.053))
=0.18799558 / 0.16858051
=1.1152

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)
=(27.56 / 161.662) / (27.84 / 149.953)
=0.17047915 / 0.18565817
=0.9182

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 + 19.097) / 224.824) / ((8 + 14.319) / 211.315)
=0.084942 / 0.10561957
=0.8042

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
=(14.437 - 0.123 - 30.702) / 224.824
=-0.0729

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.

Anaren, Inc. has a M-score of -2.82 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.

Anaren, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.31580.96370.99150.98791.14790.83321.17711.00051.16061.0104
GMI 0.88971.11540.87831.01261.15350.9420.88690.97351.0860.9398
AQI 1.22870.96940.62841.65540.76750.96341.27950.8541.09720.83
SGI 1.12661.11031.11651.2231.01811.2711.01131.06150.82241.0748
DEPI 0.82641.05981.13071.22640.87090.94770.90580.97491.00121.0027
SGAI 0.94270.90581.00160.92731.02691.05371.02850.98081.13410.9032
LVGI 1.77111.05051.01781.55810.91673.01290.89010.78690.38840.9741
TATA -0.043-0.0144-0.0421-0.0521-0.0288-0.0782-0.0596-0.0338-0.0561-0.0519
M-score -2.51-2.43-2.79-2.41-2.47-3.48-2.51-2.59-2.49-2.72

Anaren, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.93981.08971.14611.16061.49581.29731.07871.01040.88790.9055
GMI 1.0091.06091.05781.0861.07580.98520.95030.93980.94111.015
AQI 0.8350.91131.01881.09721.0571.03540.99370.830.88020.7966
SGI 1.00210.94430.88210.82240.8520.90530.98631.07481.06881.0781
DEPI 0.99071.010.9631.00120.95590.93840.97781.00271.10081.1152
SGAI 0.991.02371.09641.13421.12121.06580.95870.90320.87950.9182
LVGI 0.71970.3520.32190.38840.7561.61431.15140.97410.68610.8042
TATA -0.0391-0.0569-0.0386-0.0561-0.0386-0.0404-0.0539-0.0526-0.0584-0.0729
M-score -2.69-2.51-2.39-2.49-2.22-2.69-2.75-2.72-2.74-2.82
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