AVG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 7 years, the highest Beneish M-Score of AVG Technologies NV was -2.06. The lowest was -3.87. And the median was -2.86.
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 AVG Technologies NV 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 * 0.8164||+||0.528 * 1.0408||+||0.404 * 1.0488||+||0.892 * 1.0682||+||0.115 * 1.0274|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9181||+||4.679 * -0.0663||-||0.327 * 1.0582|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $32.7 Mil.|
Revenue was 105.029 + 107.871 + 109.522 + 108.183 = $430.6 Mil.
Gross Profit was 85.215 + 89.267 + 91.293 + 91.129 = $356.9 Mil.
Total Current Assets was $166.0 Mil.
Total Assets was $618.8 Mil.
Property, Plant and Equipment(Net PPE) was $22.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $48.4 Mil.
Selling, General & Admin. Expense(SGA) was $195.4 Mil.
Total Current Liabilities was $243.7 Mil.
Long-Term Debt was $216.3 Mil.
Net Income was 6.949 + 11.247 + 20.555 + 7.856 = $46.6 Mil.
Non Operating Income was -3.843 + -3.17 + -4.007 + -4.132 = $-15.2 Mil.
Cash Flow from Operations was 19.332 + 21.472 + 30.228 + 31.77 = $102.8 Mil.
|Accounts Receivable was $37.5 Mil.
Revenue was 107.796 + 102.81 + 100.172 + 92.346 = $403.1 Mil.
Gross Profit was 92.085 + 88.998 + 84.504 + 82.168 = $347.8 Mil.
Total Current Assets was $213.0 Mil.
Total Assets was $686.0 Mil.
Property, Plant and Equipment(Net PPE) was $17.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $42.4 Mil.
Selling, General & Admin. Expense(SGA) was $199.3 Mil.
Total Current Liabilities was $260.2 Mil.
Long-Term Debt was $221.9 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(32.729 / 430.605)||/||(37.531 / 403.124)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(347.755 / 403.124)||/||(356.904 / 430.605)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (166.016 + 22.219) / 618.822)||/||(1 - (213.044 + 17.833) / 686.041)|
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.
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))|
|=||(42.431 / (42.431 + 17.833))||/||(48.391 / (48.391 + 22.219))|
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)|
|=||(195.437 / 430.605)||/||(199.285 / 403.124)|
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)|
|=||((216.346 + 243.745) / 618.822)||/||((221.851 + 260.157) / 686.041)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(46.607 - -15.152||-||102.802)||/||618.822|
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.
AVG Technologies NV has a M-score of -2.86 suggests that the company will not be a manipulator.
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
AVG Technologies NV Annual Data
AVG Technologies NV Quarterly Data