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Exponent Inc (NAS:EXPO)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

EXPO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.47   Max: 6.81
Current: -2.64

-4.47
6.81

During the past 13 years, the highest Beneish M-Score of Exponent Inc was 6.81. The lowest was -4.47. And the median was -2.64.


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 * 1.0129+0.528 * 0.9581+0.404 * 0.9732+0.892 * 1.0293+0.115 * 0.986
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.963+4.679 * -0.0421-0.327 * 0.9302
=-2.64

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $58.4 Mil.
Revenue was 78.994 + 79.864 + 80.293 + 73.611 = $312.8 Mil.
Gross Profit was 31.65 + 29.495 + 25.026 + 24.969 = $111.1 Mil.
Total Current Assets was $269.5 Mil.
Total Assets was $369.0 Mil.
Property, Plant and Equipment(Net PPE) was $29.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.5 Mil.
Selling, General & Admin. Expense(SGA) was $15.6 Mil.
Total Current Liabilities was $69.6 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 11.719 + 11.697 + 10.333 + 9.243 = $43.0 Mil.
Non Operating Income was -2.195 + 0.553 + 2.009 + 1.661 = $2.0 Mil.
Cash Flow from Operations was 19.49 + 13.119 + 1.701 + 22.176 = $56.5 Mil.
Accounts Receivable was $56.0 Mil.
Revenue was 78.557 + 76.574 + 75.962 + 72.772 = $303.9 Mil.
Gross Profit was 30.316 + 26.282 + 24.109 + 22.747 = $103.5 Mil.
Total Current Assets was $254.5 Mil.
Total Assets was $352.1 Mil.
Property, Plant and Equipment(Net PPE) was $28.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.3 Mil.
Selling, General & Admin. Expense(SGA) was $15.7 Mil.
Total Current Liabilities was $71.4 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)
=(58.382 / 312.762) / (55.999 / 303.865)
=0.1866659 / 0.18428908
=1.0129

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)
=(29.495 / 303.865) / (31.65 / 312.762)
=0.3404604 / 0.35535007
=0.9581

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 - (269.458 + 29.39) / 368.981) / (1 - (254.483 + 28.812) / 352.056)
=0.19007212 / 0.19531268
=0.9732

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
=312.762 / 303.865
=1.0293

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))
=(5.263 / (5.263 + 28.812)) / (5.459 / (5.459 + 29.39))
=0.15445341 / 0.15664725
=0.986

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)
=(15.571 / 312.762) / (15.709 / 303.865)
=0.04978546 / 0.0516973
=0.963

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 + 69.563) / 368.981) / ((0 + 71.355) / 352.056)
=0.18852732 / 0.20268082
=0.9302

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
=(42.992 - 2.028 - 56.486) / 368.981
=-0.0421

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 -2.64 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.69020.98530.89111.03311.46991.09311.09051.00480.67471.0129
GMI 1.01880.97460.99930.97210.99470.96210.93420.96460.93160.9581
AQI 1.06161.08411.11250.91941.04531.03761.04221.08871.01630.9732
SGI 1.05041.03031.0121.02071.02081.02541.02881.03191.03921.0293
DEPI 1.030.9820.99640.90870.93080.95660.91610.92710.92010.986
SGAI 1.08161.07191.07231.04281.00831.03461.04651.01121.02180.963
LVGI 0.93760.91080.92131.25620.99021.11581.03610.84190.95410.9302
TATA -0.0425-0.0879-0.0901-0.0805-0.0684-0.0533-0.0323-0.0539-0.0363-0.0421
M-score -2.87-2.84-2.93-2.96-2.34-2.67-2.57-2.64-2.94-2.64
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