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Amcon Distributing Co (AMEX:DIT)
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.

Amcon Distributing Co has a M-score of -1.91 signals that the company is a manipulator.

DIT' s 10-Year Beneish M-Score Range
Min: -3.58   Max: 1.38
Current: 0

-3.58
1.38

During the past 13 years, the highest Beneish M-Score of Amcon Distributing Co was 1.38. The lowest was -3.58. And the median was -2.46.


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 * 1.1022+0.528 * 1.0486+0.404 * 0.8206+0.892 * 1.0406+0.115 * 1.0536
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9489+4.679 * 0.1058-0.327 * 1.0843
=-1.91

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $31 Mil.
Revenue was 287.444 + 315.433 + 336.06 + 322.648 = $1,262 Mil.
Gross Profit was 17.733 + 19.527 + 19.951 + 19.295 = $77 Mil.
Total Current Assets was $101 Mil.
Total Assets was $126 Mil.
Property, Plant and Equipment(Net PPE) was $13 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General & Admin. Expense(SGA) was $64 Mil.
Total Current Liabilities was $25 Mil.
Long-Term Debt was $36 Mil.
Net Income was 0.769 + 1.546 + 1.88 + 1.26 = $5 Mil.
Non Operating Income was 0.036 + 0.007 + -0.004 + 0.037 = $0 Mil.
Cash Flow from Operations was -10.62 + -4.912 + 6.448 + 1.177 = $-8 Mil.
Accounts Receivable was $27 Mil.
Revenue was 272.422 + 305.626 + 318.235 + 316.031 = $1,212 Mil.
Gross Profit was 17.62 + 19.641 + 20.02 + 19.811 = $77 Mil.
Total Current Assets was $83 Mil.
Total Assets was $108 Mil.
Property, Plant and Equipment(Net PPE) was $14 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General & Admin. Expense(SGA) was $65 Mil.
Total Current Liabilities was $24 Mil.
Long-Term Debt was $24 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)
=(30.848 / 1261.585) / (26.895 / 1212.314)
=0.02445178 / 0.02218485
=1.1022

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)
=(19.527 / 1212.314) / (17.733 / 1261.585)
=0.06359079 / 0.06064276
=1.0486

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 - (101.237 + 13.389) / 125.586) / (1 - (82.866 + 13.526) / 107.864)
=0.08727087 / 0.10635615
=0.8206

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
=1261.585 / 1212.314
=1.0406

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))
=(2.472 / (2.472 + 13.526)) / (2.301 / (2.301 + 13.389))
=0.15451931 / 0.14665392
=1.0536

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)
=(64.086 / 1261.585) / (64.897 / 1212.314)
=0.050798 / 0.05353151
=0.9489

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)
=((35.525 + 24.956) / 125.586) / ((23.675 + 24.234) / 107.864)
=0.4815903 / 0.44416117
=1.0843

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
=(5.455 - 0.076 - -7.907) / 125.586
=0.1058

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 -1.91 signals that the company is likely to 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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.91441.01730.98470.96880.98930.8831.14610.87950.8421.1484
GMI 0.98931.02110.9551.00141.00161.05760.99661.05741.05411.0326
AQI 1.17910.90930.82240.82040.86041.12310.93640.98870.90720.944
SGI 1.02111.0061.01671.00811.05521.1131.03081.12721.03141.0212
DEPI 0.6821.02750.95181.24781.15640.76290.91180.90670.9931.0535
SGAI 1.02181.00750.96921.0050.9460.94911.00450.99530.97920.9922
LVGI 1.07530.97150.92040.93070.89250.86770.94360.85790.94920.9694
TATA -0.174-0.0074-0.04740.0013-0.0569-0.0159-0.0756-0.0271-0.0012-0.0258
M-score -3.35-2.51-2.77-2.52-2.70-2.46-2.69-2.54-2.59-2.43

Amcon Distributing Co Quarterly Data

Mar13May13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.92551.06280.86210.991810.82361.15161.04011.1022
GMI 1.03651.04831.04281.04031.0371.02241.03521.03651.0486
AQI 0.90450.8161.0690.86210.93121.0220.9440.98640.8206
SGI 1.04571.02071.01811.04531.01871.01711.01841.00081.0406
DEPI 1.02151.00620.98810.98586.47171.03441.06421.05311.0536
SGAI 0.99160.98890.99410.99130.99651.0030.9850.98140.9489
LVGI 0.90491.08540.85531.09050.98770.91570.96940.88081.0843
TATA -0.00450.2028-0.02860.18650.0018-0.0955-0.0258-0.07060.1058
M-score -2.51-1.53-2.63-1.64-1.83-3.02-2.43-2.71-1.91
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