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Exponent Inc (NAS:EXPO)
Beneish M-Score
-1.82 (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 -2.68 suggests that the company is not a manipulator.

EXPO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.41   Max: 6.81
Current: -1.82

-4.41
6.81

During the past 13 years, the highest Beneish M-Score of Exponent Inc was 6.81. The lowest was -4.41. And the median was -2.65.


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 * 0.9989+0.528 * 0.9756+0.404 * 0.997+0.892 * 1.0267+0.115 * 0.995
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9404+4.679 * -0.0487-0.327 * 0.9561
=-2.68

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $88.6 Mil.
Revenue was $312.8 Mil.
Gross Profit was $111.2 Mil.
Total Current Assets was $272.8 Mil.
Total Assets was $387.5 Mil.
Property, Plant and Equipment(Net PPE) was $28.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.5 Mil.
Selling, General & Admin. Expense(SGA) was $15.3 Mil.
Total Current Liabilities was $80.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was $43.6 Mil.
Non Operating Income was $2.0 Mil.
Cash Flow from Operations was $60.5 Mil.
Accounts Receivable was $86.4 Mil.
Revenue was $304.7 Mil.
Gross Profit was $105.7 Mil.
Total Current Assets was $255.5 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.



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)
=(88.577 / 312.832) / (86.368 / 304.704)
=0.28314559 / 0.28344886
=0.9989

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)
=(105.676 / 304.704) / (111.203 / 312.832)
=0.34681527 / 0.35547195
=0.9756

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 - (272.786 + 28.485) / 387.507) / (1 - (255.498 + 28.264) / 365.299)
=0.2225405 / 0.2232062
=0.997

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
=312.832 / 304.704
=1.0267

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))
=(5.404 / (5.404 + 28.264)) / (5.479 / (5.479 + 28.485))
=0.16050849 / 0.16131787
=0.995

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)
=(15.295 / 312.832) / (15.842 / 304.704)
=0.04889206 / 0.05199144
=0.9404

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 + 80.474) / 387.507) / ((0 + 79.345) / 365.299)
=0.20767109 / 0.21720563
=0.9561

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
=(43.599 - 1.993 - 60.489) / 387.507
=-0.0487

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 -2.68 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 local exchange's currency.

Exponent Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96091.01920.93231.01151.05310.92611.08760.89111.09050.9989
GMI 0.98562.61810.97621.10390.92990.93921.01820.99930.93420.9756
AQI 1.40490.91061.05461.20251.01721.11831.04111.11251.20480.997
SGI 1.08571.21751.11550.99581.09161.09521.07421.0121.02881.0267
DEPI 0.9921.13640.99840.89060.95020.98120.9520.99640.91610.995
SGAI 1.03460.08470.99720.82541.02920.96860.96241.07231.04650.9404
LVGI 1.18531.26471.0930.82871.02151.01391.00630.92131.03610.9561
TATA -0.0425-0.0464-0.0725-0.0379-0.0456-0.0559-0.0478-0.0901-0.0323-0.0487
M-score -2.55-1.58-2.80-2.44-2.61-2.71-2.53-2.93-2.50-2.68
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