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Gevo Inc (NAS:GEVO)
Beneish M-Score
-3.41 (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.

Gevo Inc has a M-score of -3.41 suggests that the company is not a manipulator.

GEVO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31   Max: 6.15
Current: -3.41

-4.31
6.15

During the past 8 years, the highest Beneish M-Score of Gevo Inc was 6.15. The lowest was -4.31. And the median was -1.67.


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 Gevo 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 * 0.8364+0.528 * 0.6928+0.404 * 0.8984+0.892 * 0.8631+0.115 * 0.9961
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8677+4.679 * -0.1021-0.327 * 0.9947
=-3.41

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1.67 Mil.
Revenue was 8.113 + 6.32 + 7.297 + 8.017 = $29.75 Mil.
Gross Profit was -1.876 + -2.903 + -1.704 + -2.612 = $-9.10 Mil.
Total Current Assets was $28.06 Mil.
Total Assets was $109.25 Mil.
Property, Plant and Equipment(Net PPE) was $77.77 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.57 Mil.
Selling, General & Admin. Expense(SGA) was $12.49 Mil.
Total Current Liabilities was $34.52 Mil.
Long-Term Debt was $16.55 Mil.
Net Income was -21.487 + -3.605 + -7.962 + -6.519 = $-39.57 Mil.
Non Operating Income was -13.749 + 4.412 + 0.681 + 4.876 = $-3.78 Mil.
Cash Flow from Operations was -5.861 + -5.504 + -7.148 + -6.127 = $-24.64 Mil.
Accounts Receivable was $2.32 Mil.
Revenue was 8.924 + 5.899 + 9.501 + 10.141 = $34.47 Mil.
Gross Profit was -0.974 + -3.335 + -1.372 + -1.619 = $-7.30 Mil.
Total Current Assets was $28.32 Mil.
Total Assets was $110.05 Mil.
Property, Plant and Equipment(Net PPE) was $77.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.56 Mil.
Selling, General & Admin. Expense(SGA) was $16.67 Mil.
Total Current Liabilities was $15.04 Mil.
Long-Term Debt was $36.67 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)
=(1.674 / 29.747) / (2.319 / 34.465)
=0.05627458 / 0.06728565
=0.8364

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)
=(-7.3 / 34.465) / (-9.095 / 29.747)
=-0.21180908 / -0.30574512
=0.6928

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 - (28.06 + 77.773) / 109.247) / (1 - (28.32 + 77.899) / 110.047)
=0.03125029 / 0.03478514
=0.8984

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
=29.747 / 34.465
=0.8631

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))
=(6.557 / (6.557 + 77.899)) / (6.574 / (6.574 + 77.773))
=0.07763806 / 0.07793994
=0.9961

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)
=(12.487 / 29.747) / (16.674 / 34.465)
=0.41977342 / 0.48379515
=0.8677

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)
=((16.545 + 34.517) / 109.247) / ((36.672 + 15.037) / 110.047)
=0.46739956 / 0.46988105
=0.9947

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
=(-39.573 - -3.78 - -24.64) / 109.247
=-0.1021

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.

Gevo Inc has a M-score of -3.41 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.

Gevo Inc Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.15070.26370.62895.76880.50580.5526
GMI 5.5582.932-0.18650.27934.55180.9044
AQI 10.39540.13871.76040.92052.15460.9026
SGI 24.84243.93690.37780.33733.4371.0662
DEPI 2.05640.86793.34491.05490.68930.7186
SGAI 0.10940.31044.02981.72240.20890.8536
LVGI 1.40410.51521.20451.04281.35291.0151
TATA -0.3292-0.1102-0.0622-0.1527-0.1295-0.1165
M-score 23.73-0.12-4.310.060.96-3.48

Gevo Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 3.75544.26910.97310.50580.21670.24960.35130.55260.44040.8364
GMI 0.30261.17161.88054.551810.83714.65981.77210.90440.77080.6928
AQI 1.04992.08351.87412.15461.96540.86581.0010.90260.87830.8984
SGI 0.42771.45112.42043.4375.95673.01111.58071.06620.91870.8631
DEPI 1.06391.09040.82850.68930.58070.4890.59210.71860.87280.9961
SGAI 1.4620.4440.28570.20890.12630.24880.60230.85360.86520.8677
LVGI 1.04151.5491.45571.35291.31090.82641.02771.01510.96760.9947
TATA -0.1212-0.0858-0.0736-0.1295-0.1406-0.1266-0.1493-0.1164-0.1302-0.1021
M-score -1.460.98-0.810.966.150.04-2.84-3.48-3.83-3.41
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