Switch to:

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1381

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1386
Amcon Distributing Co (AMEX:DIT)
Beneish M-Score
-3.02 (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 -3.02 suggests that the company is not a manipulator.

DIT' s 10-Year Beneish M-Score Range
Min: -3.57   Max: 1.38
Current: -3.02

-3.57
1.38

During the past 13 years, the highest Beneish M-Score of Amcon Distributing Co was 1.38. The lowest was -3.57. 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 * 0.8236+0.528 * 1.0224+0.404 * 1.022+0.892 * 1.0171+0.115 * 1.0344
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.003+4.679 * -0.0957-0.327 * 0.9157
=-3.02

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 1.26 + 0.531 + 1.288 + 1.55 = $5 Mil.
Non Operating Income was 0.037 + 0.039 + 0.03 + 0.052 = $0 Mil.
Cash Flow from Operations was 1.177 + 10.441 + -10.404 + 14.043 = $15 Mil.
Accounts Receivable was $35 Mil.
Revenue was 316.031 + 305.626 + 274.568 + 302.218 = $1,198 Mil.
Gross Profit was 19.811 + 19.641 + 18.297 + 19.23 = $77 Mil.
Total Current Assets was $94 Mil.
Total Assets was $119 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 $28 Mil.
Long-Term Debt was $32 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)
=(29.699 / 1218.931) / (35.454 / 1198.443)
=0.02436479 / 0.02958338
=0.8236

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)
=(17.62 / 1198.443) / (19.295 / 1218.931)
=0.06423251 / 0.06282226
=1.0224

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 - (87.376 + 13.944) / 112.683) / (1 - (93.599 + 13.312) / 118.615)
=0.10084041 / 0.09867217
=1.022

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
=1218.931 / 1198.443
=1.0171

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))
=(2.416 / (2.416 + 13.312)) / (2.432 / (2.432 + 13.944))
=0.15361139 / 0.14851001
=1.0344

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)
=(65.127 / 1218.931) / (63.843 / 1198.443)
=0.0534296 / 0.05327162
=1.003

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)
=((24.986 + 27.339) / 112.683) / ((32.212 + 27.936) / 118.615)
=0.46435576 / 0.50708595
=0.9157

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
=(4.629 - 0.158 - 15.257) / 112.683
=-0.0957

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 -3.02 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.98440.9430.97830.98470.96880.98930.8831.14610.87950.842
GMI 1.10330.98980.9960.95161.00141.00161.05760.99661.05741.0541
AQI 0.96820.95411.25530.74130.82040.86041.12310.93640.98870.9072
SGI 1.06691.02680.99251.01671.00811.05521.1131.03081.12721.0314
DEPI 1.15450.81121.0320.95181.24781.15640.76290.91180.90670.993
SGAI 0.99040.98140.92250.96921.0050.9460.94911.00450.99530.9792
LVGI 1.0271.11440.96850.89090.93070.89250.86770.94360.85790.9492
TATA 0.0226-0.0867-0.009-0.04740.0013-0.0569-0.0163-0.0756-0.0268-0.0014
M-score -2.28-2.99-2.42-2.80-2.52-2.70-2.46-2.69-2.54-2.59

Amcon Distributing Co Quarterly Data

Jun12Sep12Dec12Mar13May13Jun13Sep13Dec13Mar14Jun14
DSRI 0.82920.87951.0020.92551.06280.86210.99180.8236
GMI 1.05331.05741.04241.03651.04831.04281.04031.0224
AQI 1.10020.98870.8730.90450.8161.0690.86211.022
SGI 1.18941.12721.10421.04571.02071.01811.04531.0171
DEPI 0.78570.90670.95671.02151.00620.98810.98581.0344
SGAI 0.98950.99530.99470.99160.98890.99410.99131.003
LVGI 0.42910.85790.96330.90491.08540.85531.09050.9157
TATA -0.1163-0.02680.0254-0.00420.2028-0.02880.1862-0.0957
M-score -2.78-2.54-2.29-2.51-1.53-2.63-1.64-3.02
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
Email Hide