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Exponent Inc (NAS:EXPO)
Beneish M-Score
-2.94 (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 -2.94 suggests that the company is not a manipulator.

EXPO' s 10-Year Beneish M-Score Range
Min: -4.47   Max: 6.81
Current: -2.94

-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 * 0.6747+0.528 * 0.9316+0.404 * 1.0163+0.892 * 1.0392+0.115 * 0.9201
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0218+4.679 * -0.0363-0.327 * 0.9541
=-2.94

* 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 $60.2 Mil.
Revenue was 79.864 + 80.293 + 73.611 + 78.557 = $312.3 Mil.
Gross Profit was 29.495 + 25.026 + 24.969 + 30.316 = $109.8 Mil.
Total Current Assets was $269.1 Mil.
Total Assets was $368.1 Mil.
Property, Plant and Equipment(Net PPE) was $27.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.5 Mil.
Selling, General & Admin. Expense(SGA) was $16.0 Mil.
Total Current Liabilities was $64.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 11.697 + 10.333 + 9.243 + 11.04 = $42.3 Mil.
Non Operating Income was 0.553 + 2.009 + 1.661 + -0.896 = $3.3 Mil.
Cash Flow from Operations was 13.119 + 1.701 + 22.176 + 15.346 = $52.3 Mil.
Accounts Receivable was $85.8 Mil.
Revenue was 76.574 + 75.962 + 72.772 + 75.231 = $300.5 Mil.
Gross Profit was 26.282 + 24.109 + 22.747 + 25.295 = $98.4 Mil.
Total Current Assets was $255.2 Mil.
Total Assets was $351.1 Mil.
Property, Plant and Equipment(Net PPE) was $28.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.2 Mil.
Selling, General & Admin. Expense(SGA) was $15.0 Mil.
Total Current Liabilities was $64.5 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)
=(60.156 / 312.325) / (85.795 / 300.539)
=0.19260706 / 0.28547044
=0.6747

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)
=(25.026 / 300.539) / (29.495 / 312.325)
=0.32752155 / 0.35157608
=0.9316

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 - (269.121 + 27.499) / 368.074) / (1 - (255.218 + 28.831) / 351.12)
=0.19412944 / 0.19102016
=1.0163

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
=312.325 / 300.539
=1.0392

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))
=(5.2 / (5.2 + 28.831)) / (5.476 / (5.476 + 27.499))
=0.15280186 / 0.1660652
=0.9201

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)
=(15.971 / 312.325) / (15.041 / 300.539)
=0.05113584 / 0.05004675
=1.0218

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 + 64.521) / 368.074) / ((0 + 64.511) / 351.12)
=0.17529356 / 0.18372921
=0.9541

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
=(42.313 - 3.327 - 52.342) / 368.074
=-0.0363

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 -2.94 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00370.69020.98530.89111.03311.46991.09311.09051.00480.6747
GMI 1.01151.01880.97460.99930.97210.99470.96210.93420.96460.9316
AQI 1.1111.06161.08411.11250.91941.04531.03761.04221.08871.0163
SGI 1.0831.05041.03031.0121.02071.02081.02541.02881.03191.0392
DEPI 1.04041.030.9820.99640.90870.93080.95660.91610.92710.9201
SGAI 1.02341.08161.07191.07231.04281.00831.03461.04651.01121.0218
LVGI 0.94980.93760.91080.92131.25620.99021.11581.03610.84190.9541
TATA -0.0417-0.0425-0.0879-0.0901-0.0805-0.0684-0.0533-0.0323-0.0539-0.0363
M-score -2.53-2.87-2.84-2.93-2.96-2.34-2.67-2.57-2.64-2.94
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