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Amcon Distributing Co (AMEX:DIT)
Beneish M-Score
-2.53 (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.

Amcon Distributing Co has a M-score of -2.53 suggests that the company is not a manipulator.

DIT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67   Max: 3.04
Current: -2.53

-3.67
3.04

During the past 13 years, the highest Beneish M-Score of Amcon Distributing Co was 3.04. The lowest was -3.67. And the median was -2.51.


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 Amcon Distributing Co 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 * 1.0009+0.528 * 1.0347+0.404 * 0.9486+0.892 * 1.018+0.115 * 0.98
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9582+4.679 * -0.017-0.327 * 0.9801
=-2.53

* 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 $34 Mil.
Revenue was 333.399 + 296.449 + 322.008 + 344.522 = $1,296 Mil.
Gross Profit was 19.164 + 17.54 + 18.962 + 19.81 = $75 Mil.
Total Current Assets was $92 Mil.
Total Assets was $115 Mil.
Property, Plant and Equipment(Net PPE) was $12 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General & Admin. Expense(SGA) was $62 Mil.
Total Current Liabilities was $29 Mil.
Long-Term Debt was $17 Mil.
Net Income was 1.852 + 1.147 + 1.356 + 2.05 = $6 Mil.
Non Operating Income was 0.036 + 0.036 + 0.027 + 0.005 = $0 Mil.
Cash Flow from Operations was 6.039 + -5.364 + 12.717 + -5.137 = $8 Mil.
Accounts Receivable was $33 Mil.
Revenue was 334.457 + 287.444 + 315.433 + 336.06 = $1,273 Mil.
Gross Profit was 19.499 + 17.733 + 19.527 + 19.951 = $77 Mil.
Total Current Assets was $89 Mil.
Total Assets was $113 Mil.
Property, Plant and Equipment(Net PPE) was $13 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General & Admin. Expense(SGA) was $63 Mil.
Total Current Liabilities was $28 Mil.
Long-Term Debt was $18 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)
=(33.933 / 1296.378) / (33.301 / 1273.394)
=0.02617524 / 0.02615137
=1.0009

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)
=(76.71 / 1273.394) / (75.476 / 1296.378)
=0.06024059 / 0.05822067
=1.0347

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 - (91.87 + 12.363) / 114.697) / (1 - (88.99 + 13.084) / 112.936)
=0.09123168 / 0.09617837
=0.9486

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
=1296.378 / 1273.394
=1.018

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))
=(2.285 / (2.285 + 13.084)) / (2.211 / (2.211 + 12.363))
=0.14867591 / 0.15170852
=0.98

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)
=(61.648 / 1296.378) / (63.197 / 1273.394)
=0.04755403 / 0.04962879
=0.9582

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)
=((16.822 + 28.992) / 114.697) / ((17.78 + 28.245) / 112.936)
=0.39943503 / 0.4075317
=0.9801

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
=(6.405 - 0.104 - 8.255) / 114.697
=-0.017

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.

Amcon Distributing Co has a M-score of -2.53 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.

Amcon Distributing Co Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.01730.98470.96880.98930.8831.14610.87950.8421.14840.9237
GMI 1.02110.9551.00141.00161.05760.99661.05741.05411.03261.0356
AQI 0.90930.82240.82040.86041.12310.93640.98870.90720.9440.8644
SGI 1.0061.01671.00811.05521.1131.03081.12721.03141.02121.0365
DEPI 1.02750.95181.24781.15640.76290.91180.90670.9931.05350.98
SGAI 1.00750.96921.0050.9460.94911.00450.99530.97920.99220.9357
LVGI 0.97150.92040.93070.89250.86770.94360.85790.94920.96941.0103
TATA -0.0074-0.04740.0013-0.0569-0.0159-0.0756-0.0271-0.0012-0.02610.0737
M-score -2.51-2.77-2.52-2.70-2.46-2.69-2.54-2.59-2.43-2.20

Amcon Distributing Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.85390.8251.14841.01421.10221.07330.92370.90970.92221.0009
GMI 1.03911.04281.03261.04491.04861.04291.03561.03891.03781.0347
AQI 0.93121.0220.9440.98640.82060.95380.86441.02521.05580.9486
SGI 1.01741.01541.02121.02641.04061.04471.03651.03361.02841.018
DEPI 0.98411.031.05311.04441.05360.99890.98040.96720.96280.98
SGAI 1.00791.010.99220.97260.94890.92890.93570.93780.93640.9582
LVGI 0.98770.91570.96940.88081.08430.87761.01030.83840.83120.9801
TATA 0.0018-0.0955-0.0261-0.07080.1056-0.02590.0737-0.0842-0.121-0.017
M-score -2.60-3.01-2.43-2.71-1.92-2.44-2.20-2.84-2.99-2.53
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