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Amcon Distributing Co (AMEX:DIT)
Beneish M-Score
-2.44 (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 -2.44 suggests that the company is not a manipulator.

DIT' s 10-Year Beneish M-Score Range
Min: -3.56   Max: 1.38
Current: -2.44

-3.56
1.38

During the past 13 years, the highest Beneish M-Score of Amcon Distributing Co was 1.38. The lowest was -3.56. 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 * 1.0733+0.528 * 1.0429+0.404 * 0.9538+0.892 * 1.0447+0.115 * 0.9989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9289+4.679 * -0.0256-0.327 * 0.8776
=-2.44

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 1.996 + 0.769 + 1.546 + 1.88 = $6 Mil.
Non Operating Income was 0.021 + 0.036 + 0.007 + -0.004 = $0 Mil.
Cash Flow from Operations was 18.109 + -10.62 + -4.912 + 6.448 = $9 Mil.
Accounts Receivable was $30 Mil.
Revenue was 322.648 + 272.422 + 305.626 + 318.235 = $1,219 Mil.
Gross Profit was 19.295 + 17.62 + 19.641 + 20.02 = $77 Mil.
Total Current Assets was $87 Mil.
Total Assets was $113 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 $27 Mil.
Long-Term Debt was $25 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)
=(33.301 / 1273.394) / (29.699 / 1218.931)
=0.02615137 / 0.02436479
=1.0733

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)
=(17.733 / 1218.931) / (19.499 / 1273.394)
=0.06282226 / 0.06024059
=1.0429

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 - (88.99 + 13.084) / 112.936) / (1 - (87.376 + 13.944) / 112.683)
=0.09617837 / 0.10084041
=0.9538

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
=1273.394 / 1218.931
=1.0447

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))
=(2.432 / (2.432 + 13.944)) / (2.285 / (2.285 + 13.084))
=0.14851001 / 0.14867591
=0.9989

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)
=(63.197 / 1273.394) / (65.127 / 1218.931)
=0.04962879 / 0.0534296
=0.9289

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)
=((17.78 + 28.245) / 112.936) / ((24.986 + 27.339) / 112.683)
=0.4075317 / 0.46435576
=0.8776

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
=(6.191 - 0.06 - 9.025) / 112.936
=-0.0256

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 -2.44 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

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

May13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.06280.86210.991810.82361.15161.04011.10221.0733
GMI 1.04831.04281.04031.0371.02241.03521.03651.04861.0429
AQI 0.8161.0690.86210.93121.0220.9440.98640.82060.9538
SGI 1.02071.01811.04531.01871.01711.01841.00081.04061.0447
DEPI 1.00620.98810.98586.47171.03441.06421.05311.05360.9989
SGAI 0.98890.99410.99130.99651.0030.9850.98140.94890.9289
LVGI 1.08540.85531.09050.98770.91570.96940.88081.08430.8776
TATA 0.2028-0.02860.18650.0018-0.0955-0.0258-0.07060.1058-0.0256
M-score -1.53-2.63-1.64-1.83-3.02-2.43-2.71-1.91-2.44
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