DMD has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 8 years, the highest Beneish M-Score of Demand Media Inc was -2.79. The lowest was -12.59. And the median was -3.13.
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 Demand Media Inc 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 * 0.988||+||0.528 * 1.371||+||0.404 * 0.8506||+||0.892 * 0.7306||+||0.115 * 1.0748|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1435||+||4.679 * -0.3762||-||0.327 * 0.9089|
|This Year (Dec15) TTM:||Last Year (Dec14) TTM:|
|Accounts Receivable was $10.5 Mil.|
Revenue was 34.486 + 28.505 + 29.768 + 33.21 = $126.0 Mil.
Gross Profit was 13.771 + 11.301 + 13.466 + 16.373 = $54.9 Mil.
Total Current Assets was $54.0 Mil.
Total Assets was $101.5 Mil.
Property, Plant and Equipment(Net PPE) was $14.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.9 Mil.
Selling, General & Admin. Expense(SGA) was $58.7 Mil.
Total Current Liabilities was $20.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -8.539 + -13.805 + -14.408 + -6.749 = $-43.5 Mil.
Non Operating Income was 0.083 + 0.178 + 0.019 + 2.827 = $3.1 Mil.
Cash Flow from Operations was 1.311 + -3.14 + -4.194 + -2.415 = $-8.4 Mil.
|Accounts Receivable was $14.5 Mil.
Revenue was 42.981 + 41.315 + 43.077 + 45.056 = $172.4 Mil.
Gross Profit was 22.303 + 24.553 + 26.757 + 29.433 = $103.0 Mil.
Total Current Assets was $69.8 Mil.
Total Assets was $149.6 Mil.
Property, Plant and Equipment(Net PPE) was $22.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.5 Mil.
Selling, General & Admin. Expense(SGA) was $70.2 Mil.
Total Current Liabilities was $32.6 Mil.
Long-Term Debt was $0.0 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(10.469 / 125.969)||/||(14.504 / 172.429)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(11.301 / 172.429)||/||(13.771 / 125.969)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (54.028 + 14.568) / 101.459)||/||(1 - (69.771 + 22.836) / 149.555)|
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.
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))|
|=||(59.473 / (59.473 + 22.836))||/||(29.884 / (29.884 + 14.568))|
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)|
|=||(58.663 / 125.969)||/||(70.225 / 172.429)|
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)|
|=||((0 + 20.075) / 101.459)||/||((0 + 32.556) / 149.555)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-43.501 - 3.107||-||-8.438)||/||101.459|
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.
Demand Media Inc has a M-score of -4.34 suggests that the company will not be a manipulator.
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
Demand Media Inc Annual Data
Demand Media Inc Quarterly Data