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Amcon Distributing Co (AMEX:DIT)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

DIT' s 10-Year Beneish M-Score Range
Min: -3.58   Max: 1.38
Current: -2.71

-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 -2.49.


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 * 1.0401+0.528 * 1.0365+0.404 * 0.9864+0.892 * 1.0008+0.115 * 1.0531
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9814+4.679 * -0.0706-0.327 * 0.8808
=-2.71

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $33 Mil.
Revenue was 315.433 + 336.06 + 322.648 + 272.422 = $1,247 Mil.
Gross Profit was 19.527 + 19.951 + 19.295 + 17.62 = $76 Mil.
Total Current Assets was $89 Mil.
Total Assets was $114 Mil.
Property, Plant and Equipment(Net PPE) was $14 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 $24 Mil.
Net Income was 1.546 + 1.88 + 1.26 + 0.531 = $5 Mil.
Non Operating Income was 0.007 + -0.004 + 0.037 + 0.039 = $0 Mil.
Cash Flow from Operations was -4.912 + 6.448 + 1.177 + 10.441 = $13 Mil.
Accounts Receivable was $32 Mil.
Revenue was 305.626 + 318.235 + 316.031 + 305.626 = $1,246 Mil.
Gross Profit was 19.641 + 20.02 + 19.811 + 19.641 = $79 Mil.
Total Current Assets was $92 Mil.
Total Assets was $117 Mil.
Property, Plant and Equipment(Net PPE) was $14 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General & Admin. Expense(SGA) was $66 Mil.
Total Current Liabilities was $25 Mil.
Long-Term Debt was $33 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)
=(33.408 / 1246.563) / (32.092 / 1245.518)
=0.02680009 / 0.02576599
=1.0401

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)
=(19.951 / 1245.518) / (19.527 / 1246.563)
=0.06351815 / 0.0612829
=1.0365

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 - (88.901 + 13.63) / 113.562) / (1 - (91.876 + 13.527) / 116.916)
=0.09713637 / 0.09847241
=0.9864

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
=1246.563 / 1245.518
=1.0008

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))
=(2.467 / (2.467 + 13.527)) / (2.339 / (2.339 + 13.63))
=0.15424534 / 0.14647129
=1.0531

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)
=(64.412 / 1246.563) / (65.577 / 1245.518)
=0.05167168 / 0.05265038
=0.9814

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)
=((24.461 + 24.589) / 113.562) / ((32.742 + 24.593) / 116.916)
=0.43192265 / 0.49039481
=0.8808

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
=(5.217 - 0.079 - 13.154) / 113.562
=-0.0706

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 -2.71 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

Dec12Mar13May13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.0020.92551.06280.86210.991810.82361.15161.0401
GMI 1.04241.03651.04831.04281.04031.0371.02241.03521.0365
AQI 0.8730.90450.8161.0690.86210.93121.0220.9440.9864
SGI 1.10421.04571.02071.01811.04531.01871.01711.01841.0008
DEPI 0.95671.02151.00620.98810.98586.47171.03441.06421.0531
SGAI 0.99470.99160.98890.99410.99130.99651.0030.9850.9814
LVGI 0.96330.90491.08540.85531.09050.98770.91570.96940.8808
TATA 0.0251-0.00450.2028-0.02860.18650.0018-0.0955-0.0258-0.0706
M-score -2.29-2.51-1.53-2.63-1.64-1.83-3.02-2.43-2.71
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