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Exponent Inc (NAS:EXPO)
Beneish M-Score
-2.57 (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.

Exponent Inc has a M-score of -2.57 suggests that the company is not a manipulator.

EXPO' s 10-Year Beneish M-Score Range
Min: -3.82   Max: -0.97
Current: -2.57

-3.82
-0.97

During the past 13 years, the highest Beneish M-Score of Exponent Inc was -0.97. The lowest was -3.82. And the median was -2.59.


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 Exponent 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 * 1.0905+0.528 * 0.9342+0.404 * 1.0422+0.892 * 1.0288+0.115 * 0.9161
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0465+4.679 * -0.0323-0.327 * 1.0361
=-2.57

* 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 $86.4 Mil.
Revenue was 73.611 + 78.557 + 76.574 + 75.962 = $304.7 Mil.
Gross Profit was 24.969 + 30.316 + 26.282 + 24.109 = $105.7 Mil.
Total Current Assets was $266.5 Mil.
Total Assets was $365.3 Mil.
Property, Plant and Equipment(Net PPE) was $28.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.4 Mil.
Selling, General & Admin. Expense(SGA) was $15.8 Mil.
Total Current Liabilities was $79.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 9.243 + 11.04 + 11.264 + 9.154 = $40.7 Mil.
Non Operating Income was 1.661 + -0.896 + 2.274 + 1.227 = $4.3 Mil.
Cash Flow from Operations was 22.176 + 15.346 + 16.85 + -6.12 = $48.3 Mil.
Accounts Receivable was $77.0 Mil.
Revenue was 72.772 + 75.231 + 75.505 + 72.66 = $296.2 Mil.
Gross Profit was 22.747 + 25.295 + 27.487 + 20.43 = $96.0 Mil.
Total Current Assets was $251.7 Mil.
Total Assets was $344.2 Mil.
Property, Plant and Equipment(Net PPE) was $28.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.0 Mil.
Selling, General & Admin. Expense(SGA) was $14.7 Mil.
Total Current Liabilities was $72.1 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)
=(86.368 / 304.704) / (76.98 / 296.168)
=0.28344886 / 0.25992005
=1.0905

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)
=(30.316 / 296.168) / (24.969 / 304.704)
=0.32400192 / 0.34681527
=0.9342

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 - (266.5 + 28.264) / 365.299) / (1 - (251.684 + 28.721) / 344.166)
=0.1930884 / 0.18526234
=1.0422

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
=304.704 / 296.168
=1.0288

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))
=(4.951 / (4.951 + 28.721)) / (5.404 / (5.404 + 28.264))
=0.14703611 / 0.16050849
=0.9161

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)
=(15.842 / 304.704) / (14.714 / 296.168)
=0.05199144 / 0.04968126
=1.0465

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 + 79.345) / 365.299) / ((0 + 72.147) / 344.166)
=0.21720563 / 0.20962849
=1.0361

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
=(40.701 - 4.266 - 48.252) / 365.299
=-0.0323

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.

Exponent Inc has a M-score of -2.57 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.

Exponent Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.16920.96091.01920.93231.01151.05310.92611.08760.89111.0905
GMI 0.98870.98562.61810.97621.10390.92990.93921.01820.99930.9342
AQI 1.20021.40490.91061.05461.20251.01721.11831.04111.11251.0422
SGI 1.02431.08571.21751.11550.99581.09161.09521.07421.0121.0288
DEPI 0.91450.9921.13640.99840.89060.95020.98120.9520.99640.9161
SGAI 1.0081.03460.08470.99720.82541.02920.96860.96241.07231.0465
LVGI 0.94451.18531.26471.0930.82871.02151.01391.00630.92131.0361
TATA -0.004-0.0425-0.0464-0.0725-0.0379-0.0456-0.0559-0.0478-0.0901-0.0323
M-score -2.24-2.55-1.58-2.80-2.44-2.61-2.71-2.53-2.93-2.57

Exponent Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.62981.08761.00370.69020.98530.89111.03311.46991.09311.0905
GMI 1.02561.01821.01151.01880.97460.99930.97210.99470.96210.9342
AQI 1.0261.04111.1111.06161.08411.11250.91941.04531.03761.0422
SGI 1.07671.07421.0831.05041.03031.0121.02071.02081.02541.0288
DEPI 0.95450.9521.04041.030.9820.99640.90870.93080.95660.9161
SGAI 0.9560.96241.02341.08161.07191.07231.04281.00831.03461.0465
LVGI 0.99951.00630.94980.93760.91080.92131.25620.99021.11581.0361
TATA -0.0384-0.0478-0.0417-0.0425-0.0879-0.0901-0.0805-0.0684-0.0533-0.0323
M-score -2.91-2.53-2.53-2.87-2.84-2.93-2.96-2.34-2.67-2.57
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