Switch to:
Amcon Distributing Co (AMEX:DIT)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

DIT' s 10-Year Beneish M-Score Range
Min: -2.99   Max: -1.29
Current: -2.43

-2.99
-1.29

During the past 13 years, the highest Beneish M-Score of Amcon Distributing Co was -1.29. The lowest was -2.99. 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 * 1.1516+0.528 * 1.0352+0.404 * 0.944+0.892 * 1.0184+0.115 * 1.0642
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.985+4.679 * -0.0258-0.327 * 0.9694
=-2.43

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $33 Mil.
Revenue was 336.06 + 322.648 + 272.422 + 305.626 = $1,237 Mil.
Gross Profit was 19.951 + 19.295 + 17.62 + 19.641 = $77 Mil.
Total Current Assets was $84 Mil.
Total Assets was $109 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 $28 Mil.
Long-Term Debt was $19 Mil.
Net Income was 1.88 + 1.26 + 0.531 + 1.288 = $5 Mil.
Non Operating Income was -0.004 + 0.037 + 0.039 + 0.03 = $0 Mil.
Cash Flow from Operations was 6.448 + 1.177 + 10.441 + -10.404 = $8 Mil.
Accounts Receivable was $28 Mil.
Revenue was 318.235 + 316.031 + 305.626 + 274.568 = $1,214 Mil.
Gross Profit was 20.02 + 19.811 + 19.641 + 18.297 = $78 Mil.
Total Current Assets was $82 Mil.
Total Assets was $106 Mil.
Property, Plant and Equipment(Net PPE) was $13 Mil.
Depreciation, Depletion and Amortization(DDA) was $2 Mil.
Selling, General & Admin. Expense(SGA) was $65 Mil.
Total Current Liabilities was $28 Mil.
Long-Term Debt was $19 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)
=(33.287 / 1236.756) / (28.383 / 1214.46)
=0.02691477 / 0.02337088
=1.1516

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)
=(19.295 / 1214.46) / (19.951 / 1236.756)
=0.06403587 / 0.06186103
=1.0352

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 - (83.663 + 13.763) / 108.68) / (1 - (81.617 + 13.089) / 106.375)
=0.10355171 / 0.10969683
=0.944

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
=1236.756 / 1214.46
=1.0184

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))
=(2.443 / (2.443 + 13.089)) / (2.387 / (2.387 + 13.763))
=0.15728818 / 0.14780186
=1.0642

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)
=(64.723 / 1236.756) / (64.523 / 1214.46)
=0.05233288 / 0.05312896
=0.985

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)
=((18.817 + 27.897) / 108.68) / ((18.919 + 28.249) / 106.375)
=0.4298307 / 0.44341246
=0.9694

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
=(4.959 - 0.102 - 7.662) / 108.68
=-0.0258

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 -2.43 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 0.9430.97830.98470.96880.98930.8831.14610.87950.8421.1484
GMI 0.98980.9960.95161.00141.00161.05760.99661.05741.05411.0326
AQI 0.95411.25530.74130.82040.86041.12310.93640.98870.90720.944
SGI 1.02680.99251.01671.00811.05521.1131.03081.12721.03141.0212
DEPI 0.81121.0320.95181.24781.15640.76290.91180.90670.9931.0535
SGAI 0.98140.92250.96921.0050.9460.94911.00450.99530.97920.9922
LVGI 1.11440.96850.89090.93070.89250.86770.94360.85790.94920.9694
TATA -0.0867-0.009-0.04740.0013-0.0569-0.0163-0.0756-0.0268-0.0012-0.0258
M-score -2.99-2.42-2.80-2.52-2.70-2.46-2.69-2.54-2.59-2.43

Amcon Distributing Co Quarterly Data

Sep12Dec12Mar13May13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.87951.0020.92551.06280.86210.991810.82361.1516
GMI 1.05741.04241.03651.04831.04281.04031.0371.02241.0352
AQI 0.98870.8730.90450.8161.0690.86210.93121.0220.944
SGI 1.12721.10421.04571.02071.01811.04531.01871.01711.0184
DEPI 0.90670.95671.02151.00620.98810.98586.47171.03441.0642
SGAI 0.99530.99470.99160.98890.99410.99130.99651.0030.985
LVGI 0.85790.96330.90491.08540.85531.09050.98770.91570.9694
TATA -0.02680.0254-0.00420.2028-0.02860.18650.0018-0.0955-0.0258
M-score -2.54-2.29-2.51-1.53-2.63-1.64-1.83-3.02-2.43
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK