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AeroVironment Inc (NAS:AVAV)
Beneish M-Score
-3.00 (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.

AeroVironment Inc has a M-score of -3.00 suggests that the company is not a manipulator.

AVAV' s 10-Year Beneish M-Score Range
Min: -3.33   Max: -0.98
Current: -3

-3.33
-0.98

During the past 13 years, the highest Beneish M-Score of AeroVironment Inc was -0.98. The lowest was -3.33. And the median was -2.43.


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 * 1.0274+0.528 * 0.9253+0.404 * 0.9158+0.892 * 1.0306+0.115 * 0.8208
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9718+4.679 * -0.0894-0.327 * 1.1995
=-3.00

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $33.6 Mil.
Revenue was 86.471 + 68.397 + 52.664 + 51.866 = $259.4 Mil.
Gross Profit was 45.35 + 26.993 + 17.871 + 14.054 = $104.3 Mil.
Total Current Assets was $329.0 Mil.
Total Assets was $397.5 Mil.
Property, Plant and Equipment(Net PPE) was $13.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.4 Mil.
Selling, General & Admin. Expense(SGA) was $55.8 Mil.
Total Current Liabilities was $46.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 7.08 + 2.325 + -2.901 + -3.609 = $2.9 Mil.
Non Operating Income was -0.727 + -0.284 + -0.583 + 0.591 = $-1.0 Mil.
Cash Flow from Operations was 25.87 + 3.582 + -4.407 + 14.368 = $39.4 Mil.
Accounts Receivable was $31.7 Mil.
Revenue was 73.498 + 69.221 + 64.867 + 44.117 = $251.7 Mil.
Gross Profit was 30.138 + 27.052 + 23.878 + 12.545 = $93.6 Mil.
Total Current Assets was $306.9 Mil.
Total Assets was $385.0 Mil.
Property, Plant and Equipment(Net PPE) was $20.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.2 Mil.
Selling, General & Admin. Expense(SGA) was $55.7 Mil.
Total Current Liabilities was $37.7 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)
=(33.607 / 259.398) / (31.739 / 251.703)
=0.12955767 / 0.12609703
=1.0274

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)
=(26.993 / 251.703) / (45.35 / 259.398)
=0.37191849 / 0.40196146
=0.9253

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 - (329.032 + 13.499) / 397.467) / (1 - (306.857 + 19.997) / 384.954)
=0.13821525 / 0.15092712
=0.9158

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
=259.398 / 251.703
=1.0306

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))
=(9.155 / (9.155 + 19.997)) / (8.366 / (8.366 + 13.499))
=0.31404363 / 0.38262063
=0.8208

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)
=(55.763 / 259.398) / (55.679 / 251.703)
=0.21497082 / 0.22120912
=0.9718

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 + 46.735) / 397.467) / ((0 + 37.735) / 384.954)
=0.11758209 / 0.0980247
=1.1995

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
=(2.895 - -1.003 - 39.413) / 397.467
=-0.0894

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 -3.00 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.

AeroVironment Inc Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
DSRI 1.03781.18660.73580.90140.97951.14420.47421.53171.0274
GMI 1.03321.08281.01770.92190.96891.00651.03271.0360.9253
AQI 0.15652.73973.7441.08040.8433.62161.15150.74030.9158
SGI 1.24661.24191.14791.00751.17231.11110.73891.04811.0306
DEPI 0.77771.16761.19680.73360.82091.36580.89310.98470.8208
SGAI 0.77731.12740.88621.22970.95361.04891.26131.03110.9718
LVGI 0.43010.85290.96411.02521.19660.91310.68250.84021.1995
TATA 0.02380.0102-0.0613-0.0541-0.02280.0317-0.0548-0.0569-0.0894
M-score -2.24-1.25-1.71-2.90-2.61-0.98-3.33-2.25-3.00

AeroVironment Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.40920.47420.56041.14731.72251.53171.02960.72950.83691.0274
GMI 0.96051.03271.04171.16981.19921.0361.03470.97440.96710.9253
AQI 1.36981.15151.15320.85360.73780.74030.58730.88791.08220.9158
SGI 0.92610.73890.70130.65360.7831.04811.15011.17641.06071.0306
DEPI 0.89370.89311.08851.22391.2050.98470.81530.77180.79030.8208
SGAI 1.12381.26131.30091.37011.26051.03110.97770.96411.01580.9718
LVGI 0.90360.68250.98380.82240.90630.84020.83271.17951.15191.1995
TATA 0.0279-0.0548-0.0764-0.0358-0.0619-0.0569-0.1316-0.1248-0.1102-0.0894
M-score -1.91-3.33-3.46-2.77-2.29-2.25-3.05-3.29-3.15-3.00
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