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AeroVironment Inc (NAS:AVAV)
Beneish M-Score
-2.96 (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.

AeroVironment Inc has a M-score of -2.37 suggests that the company is not a manipulator.

AVAV' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: 1.5
Current: -2.96

-3.53
1.5

During the past 13 years, the highest Beneish M-Score of AeroVironment Inc was 1.50. The lowest was -3.53. And the median was -2.39.


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 AeroVironment 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 * 1.1631+0.528 * 1.0285+0.404 * 0.9233+0.892 * 0.9948+0.115 * 1.3511
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0203+4.679 * -0.0146-0.327 * 0.9717
=-2.37

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $32.6 Mil.
Revenue was 36.218 + 84.757 + 67.56 + 64.731 = $253.3 Mil.
Gross Profit was 6.683 + 37.922 + 26.625 + 31.533 = $102.8 Mil.
Total Current Assets was $323.8 Mil.
Total Assets was $389.5 Mil.
Property, Plant and Equipment(Net PPE) was $16.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.3 Mil.
Selling, General & Admin. Expense(SGA) was $58.5 Mil.
Total Current Liabilities was $35.6 Mil.
Long-Term Debt was $0.4 Mil.
Net Income was -11.642 + 5.364 + 6.164 + 4.419 = $4.3 Mil.
Non Operating Income was -0.3 + 0.097 + -0.215 + -0.192 = $-0.6 Mil.
Cash Flow from Operations was -1.243 + 6.25 + 17.21 + -11.605 = $10.6 Mil.
Accounts Receivable was $28.2 Mil.
Revenue was 47.05 + 86.471 + 68.397 + 52.664 = $254.6 Mil.
Gross Profit was 16.023 + 45.35 + 26.993 + 17.871 = $106.2 Mil.
Total Current Assets was $318.2 Mil.
Total Assets was $383.3 Mil.
Property, Plant and Equipment(Net PPE) was $13.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.6 Mil.
Selling, General & Admin. Expense(SGA) was $57.6 Mil.
Total Current Liabilities was $36.4 Mil.
Long-Term Debt was $0.0 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)
=(32.635 / 253.266) / (28.205 / 254.582)
=0.12885662 / 0.11078945
=1.1631

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)
=(106.237 / 254.582) / (102.763 / 253.266)
=0.41729973 / 0.40575127
=1.0285

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 - (323.765 + 16.91) / 389.534) / (1 - (318.181 + 13.023) / 383.274)
=0.12542936 / 0.13585581
=0.9233

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
=253.266 / 254.582
=0.9948

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))
=(7.576 / (7.576 + 13.023)) / (6.325 / (6.325 + 16.91))
=0.36778484 / 0.27221864
=1.3511

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)
=(58.484 / 253.266) / (57.616 / 254.582)
=0.23091927 / 0.22631608
=1.0203

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)
=((0.357 + 35.587) / 389.534) / ((0 + 36.398) / 383.274)
=0.09227436 / 0.094966
=0.9717

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
=(4.305 - -0.61 - 10.612) / 389.534
=-0.0146

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.

AeroVironment Inc has a M-score of -2.37 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 local exchange's currency.

AeroVironment Inc Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
DSRI 1.03781.18660.73580.90140.97951.14420.47421.53171.02741.638
GMI 1.03321.08281.01770.92190.96891.00651.03271.0360.92530.947
AQI 0.15652.73973.7441.08040.8433.62161.15150.74030.91580.7744
SGI 1.24661.24191.14791.00751.17231.11110.73891.04811.03061.0181
DEPI 0.77771.16761.19680.73360.82091.36580.89310.98470.82081.4385
SGAI 0.77731.12740.88621.22970.95361.04891.26131.03110.97181.0582
LVGI 0.43010.85290.96411.02521.19660.91310.68250.84021.19950.9697
TATA 0.03390.0289-0.0613-0.0541-0.02280.0317-0.0693-0.0569-0.08940.0271
M-score -2.19-1.17-1.71-2.90-2.61-0.98-3.40-2.25-3.00-1.82

AeroVironment Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.53171.02960.72950.83691.02741.23831.27460.95541.6381.1631
GMI 1.0361.03470.97440.96710.92530.87860.80160.80370.9471.0285
AQI 0.74030.58730.88791.08220.91581.0950.79510.74790.77440.9233
SGI 1.04811.15011.17641.06071.03060.98121.07851.07871.01810.9948
DEPI 0.98470.81530.77180.79030.82080.92061.03551.1181.43851.3511
SGAI 1.03110.97770.96411.01580.97181.0370.95770.95651.05821.0203
LVGI 0.84020.83271.17951.15191.19951.08790.74240.75580.96970.9717
TATA -0.0569-0.1352-0.1311-0.1197-0.0894-0.02320.0165-0.00590.0271-0.0146
M-score -2.25-3.06-3.32-3.20-3.00-2.46-2.17-2.58-1.82-2.37
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