FWRD has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Forward Air Corp was 47.03. The lowest was -3.78. And the median was -2.55.
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 Forward Air Corp 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 * 1.0316||+||0.528 * 1.015||+||0.404 * 1.1917||+||0.892 * 1.2158||+||0.115 * 0.791|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0957||+||4.679 * -0.0289||-||0.327 * 2.891|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $122.4 Mil.|
Revenue was 249.694 + 205.918 + 214.062 + 201.477 = $871.2 Mil.
Gross Profit was 119.747 + 91.675 + 102.854 + 98.341 = $412.6 Mil.
Total Current Assets was $193.3 Mil.
Total Assets was $709.4 Mil.
Property, Plant and Equipment(Net PPE) was $173.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.6 Mil.
Selling, General & Admin. Expense(SGA) was $283.5 Mil.
Total Current Liabilities was $116.7 Mil.
Long-Term Debt was $56.9 Mil.
Net Income was 11.824 + 4.837 + 17.046 + 16.744 = $50.5 Mil.
Non Operating Income was -0.089 + -0.048 + 0.145 + -0.055 = $-0.0 Mil.
Cash Flow from Operations was 11.103 + 7.459 + 26.567 + 25.878 = $71.0 Mil.
|Accounts Receivable was $97.6 Mil.
Revenue was 193.852 + 171.569 + 181.085 + 170.033 = $716.5 Mil.
Gross Profit was 97.681 + 80.734 + 85.405 + 80.67 = $344.5 Mil.
Total Current Assets was $137.2 Mil.
Total Assets was $532.5 Mil.
Property, Plant and Equipment(Net PPE) was $179.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.2 Mil.
Selling, General & Admin. Expense(SGA) was $212.8 Mil.
Total Current Liabilities was $43.7 Mil.
Long-Term Debt was $1.4 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(122.356 / 871.151)||/||(97.56 / 716.539)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(91.675 / 716.539)||/||(119.747 / 871.151)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (193.342 + 173.197) / 709.36)||/||(1 - (137.158 + 179.381) / 532.489)|
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.
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))|
|=||(27.186 / (27.186 + 179.381))||/||(34.571 / (34.571 + 173.197))|
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)|
|=||(283.467 / 871.151)||/||(212.796 / 716.539)|
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)|
|=||((56.926 + 116.713) / 709.36)||/||((1.415 + 43.671) / 532.489)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(50.451 - -0.047||-||71.007)||/||709.36|
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.
Forward Air Corp has a M-score of -2.97 suggests that the company will not be a manipulator.
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
Forward Air Corp Annual Data
Forward Air Corp Quarterly Data