Switch to:
GuruFocus has detected 6 Warning Signs with Exponent Inc $EXPO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Exponent Inc (NAS:EXPO)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

EXPO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.79   Max: -0.97
Current: -2.71

-3.79
-0.97

During the past 13 years, the highest Beneish M-Score of Exponent Inc was -0.97. The lowest was -3.79. And the median was -2.61.


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 * 0.9798+0.528 * 1.0611+0.404 * 1.035+0.892 * 1.0072+0.115 * 1.1272
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.973+4.679 * -0.0644-0.327 * 0.9569
=-2.71

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $87.4 Mil.
Revenue was 77.013 + 77.612 + 77.295 + 83.156 = $315.1 Mil.
Gross Profit was 30.47 + 29.815 + 26.294 + 26.933 = $113.5 Mil.
Total Current Assets was $274.0 Mil.
Total Assets was $403.7 Mil.
Property, Plant and Equipment(Net PPE) was $36.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.1 Mil.
Selling, General & Admin. Expense(SGA) was $23.2 Mil.
Total Current Liabilities was $80.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 10.388 + 11.289 + 10.453 + 15.35 = $47.5 Mil.
Non Operating Income was 1.648 + 2.146 + 1.575 + 1.159 = $6.5 Mil.
Cash Flow from Operations was 29.712 + 22.689 + 14.232 + 0.313 = $66.9 Mil.
Accounts Receivable was $88.6 Mil.
Revenue was 73.681 + 78.994 + 79.864 + 80.293 = $312.8 Mil.
Gross Profit was 28.924 + 36.141 + 29.495 + 25.026 = $119.6 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 $23.7 Mil.
Total Current Liabilities was $80.5 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)
=(87.409 / 315.076) / (88.577 / 312.832)
=0.27742196 / 0.28314559
=0.9798

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)
=(119.586 / 312.832) / (113.512 / 315.076)
=0.38226908 / 0.36026863
=1.0611

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 - (274.044 + 36.71) / 403.744) / (1 - (272.786 + 28.485) / 387.507)
=0.23031921 / 0.2225405
=1.035

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
=315.076 / 312.832
=1.0072

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))
=(5.479 / (5.479 + 28.485)) / (6.131 / (6.131 + 36.71))
=0.16131787 / 0.14311057
=1.1272

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)
=(23.204 / 315.076) / (23.678 / 312.832)
=0.07364572 / 0.07568919
=0.973

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 + 80.236) / 403.744) / ((0 + 80.474) / 387.507)
=0.19872989 / 0.20767109
=0.9569

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
=(47.48 - 6.528 - 66.946) / 403.744
=-0.0644

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 -2.71 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.01920.93231.01151.05310.92611.08760.89111.09050.99890.9798
GMI 2.61810.97621.10390.92990.93921.01820.99930.81480.96941.0622
AQI 0.91061.05461.20251.01721.11831.04111.11251.20480.9971.035
SGI 1.21751.11550.99581.09161.09521.07421.0121.02881.02671.0072
DEPI 1.13640.99840.89060.95020.98120.9520.99640.91610.9951.1272
SGAI 0.08470.99720.82541.02920.96860.96241.07232.07011.00770.9607
LVGI 1.26471.0930.82871.02151.01391.00630.92131.03610.95610.9569
TATA -0.0464-0.0725-0.0379-0.0456-0.0559-0.0478-0.0901-0.0323-0.0487-0.0644
M-score -1.58-2.80-2.44-2.61-2.71-2.53-2.93-2.74-2.69-2.71

Exponent Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.09051.00480.67471.01290.99890.70521.53061.62040.97981.5168
GMI 0.81480.84220.81640.81211.04031.02661.0621.16731.06111.0799
AQI 1.20481.08871.01630.97320.9971.13451.15021.23751.0351.0639
SGI 1.02881.03191.03921.02931.02671.02161.00260.99671.00721.0011
DEPI 0.91610.92710.92010.9860.9951.02061.0121.14211.12721.4147
SGAI 2.07012.01362.01312.19910.7360.74550.75320.63510.9731.0078
LVGI 1.03610.84190.95410.93020.95610.94390.91070.95190.95690.9946
TATA -0.0323-0.0539-0.0363-0.0421-0.0487-0.0308-0.0386-0.0596-0.0644-0.0649
M-score -2.74-2.88-3.17-2.93-2.61-2.74-2.00-1.91-2.71-2.19
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)
FEEDBACK