Switch to:
Exar Corp (NYSE:EXAR)
Beneish M-Score
-2.65 (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.

Exar Corp has a M-score of -2.65 suggests that the company is not a manipulator.

EXAR' s 10-Year Beneish M-Score Range
Min: -4.22   Max: 4.06
Current: -2.65

-4.22
4.06

During the past 13 years, the highest Beneish M-Score of Exar Corp was 4.06. The lowest was -4.22. And the median was -2.66.


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 Exar Corp 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 * 0.6872+0.528 * 1.1382+0.404 * 1.2236+0.892 * 1.3917+0.115 * 0.8767
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8808+4.679 * -0.1107-0.327 * 0.6371
=-2.65

* 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 $25.4 Mil.
Revenue was 40.422 + 43.857 + 44.315 + 43.159 = $171.8 Mil.
Gross Profit was 17.437 + 17.948 + 16.89 + 4.132 = $56.4 Mil.
Total Current Assets was $119.0 Mil.
Total Assets was $279.1 Mil.
Property, Plant and Equipment(Net PPE) was $24.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.1 Mil.
Selling, General & Admin. Expense(SGA) was $44.0 Mil.
Total Current Liabilities was $48.5 Mil.
Long-Term Debt was $4.6 Mil.
Net Income was -2.51 + -2.914 + -6.599 + -23.352 = $-35.4 Mil.
Non Operating Income was 0 + -0.544 + 0 + 0 = $-0.5 Mil.
Cash Flow from Operations was 1.562 + 2.37 + -5.914 + -1.96 = $-3.9 Mil.
Accounts Receivable was $26.6 Mil.
Revenue was 30.719 + 27.987 + 30.69 + 34.018 = $123.4 Mil.
Gross Profit was 10.956 + 8.422 + 12.826 + 13.929 = $46.1 Mil.
Total Current Assets was $216.0 Mil.
Total Assets was $392.1 Mil.
Property, Plant and Equipment(Net PPE) was $20.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.4 Mil.
Selling, General & Admin. Expense(SGA) was $35.9 Mil.
Total Current Liabilities was $117.1 Mil.
Long-Term Debt was $0.0 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)
=(25.434 / 171.753) / (26.596 / 123.414)
=0.14808475 / 0.21550229
=0.6872

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)
=(17.948 / 123.414) / (17.437 / 171.753)
=0.37380686 / 0.3284193
=1.1382

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 - (119.041 + 24.637) / 279.102) / (1 - (215.986 + 20.644) / 392.136)
=0.48521329 / 0.3965614
=1.2236

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
=171.753 / 123.414
=1.3917

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))
=(13.406 / (13.406 + 20.644)) / (20.083 / (20.083 + 24.637))
=0.39371512 / 0.44908318
=0.8767

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)
=(43.98 / 171.753) / (35.879 / 123.414)
=0.2560654 / 0.29072066
=0.8808

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)
=((4.629 + 48.49) / 279.102) / ((0.04 + 117.11) / 392.136)
=0.1903211 / 0.29874839
=0.6371

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
=(-35.375 - -0.544 - -3.942) / 279.102
=-0.1107

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.

Exar Corp has a M-score of -2.65 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.

Exar Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 1.63090.5752.38730.5281.64130.67370.98051.18681.15971.4135
GMI 1.0060.99881.51981.02410.92881.07211.02350.93841.12911.3119
AQI 1.91290.97353.12260.15134.41490.57310.77421.59662.42982.3506
SGI 1.16831.02211.31011.28281.17161.08250.89430.93461.0271.2931
DEPI 0.94930.99980.79840.84720.77610.9660.96881.12710.81860.9137
SGAI 0.88211.14541.16060.80141.07030.8590.95650.89870.98611.0238
LVGI 1.31210.98472.44611.54921.29791.00510.92910.91260.98661.4129
TATA -0.0087-0.0324-0.1035-0.2215-0.0943-0.1095-0.0974-0.01530.0174-0.1087
M-score -1.51-3.03-0.80-4.19-0.97-3.33-3.10-2.17-1.60-1.79

Exar Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.18681.05861.11361.67861.15971.70921.22661.07831.41350.6872
GMI 0.93840.90960.90470.92961.12911.24361.66811.621.31191.1382
AQI 1.59661.57194.33184.61182.42984.92412.18922.56242.35061.2236
SGI 0.93461.02091.09761.08281.0270.98411.02921.13771.29311.3917
DEPI 1.12710.68880.64020.62120.81861.31631.16141.27790.91370.8767
SGAI 0.89870.86360.89120.94891.01141.11641.06781.02180.99130.8808
LVGI 0.91260.96360.96090.93420.98662.1772.1821.41721.41290.6371
TATA -0.0153-0.0216-0.00450.01450.01740.0038-0.0701-0.0983-0.1087-0.1107
M-score -2.17-2.33-1.02-0.31-1.60-0.48-2.12-1.89-1.78-2.65
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)

GuruFocus Premium Plus Membership

FEEDBACK