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Gevo Inc (NAS:GEVO)
Beneish M-Score
-1.46 (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 -1.46 signals that the company is a manipulator.

GEVO' s 10-Year Beneish M-Score Range
Min: -4.31   Max: 0.06
Current: -1.46

-4.31
0.06

During the past 6 years, the highest Beneish M-Score of Gevo Inc was 0.06. The lowest was -4.31. And the median was -2.79.


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 * 3.7554+0.528 * 0.3026+0.404 * 1.0499+0.892 * 0.4277+0.115 * 1.0639
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.462+4.679 * -0.1212-0.327 * 1.0415
=-1.46

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1.66 Mil.
Revenue was 0.903 + 1.695 + 1.127 + 1.859 = $5.58 Mil.
Gross Profit was -3.777 + -3.353 + -3.619 + -1.757 = $-12.51 Mil.
Total Current Assets was $14.94 Mil.
Total Assets was $100.26 Mil.
Property, Plant and Equipment(Net PPE) was $83.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.37 Mil.
Selling, General & Admin. Expense(SGA) was $23.64 Mil.
Total Current Liabilities was $17.11 Mil.
Long-Term Debt was $22.54 Mil.
Net Income was -11.972 + -17.329 + -15.885 + -15.222 = $-60.41 Mil.
Non Operating Income was 2.551 + -2.347 + 1.611 + 0.954 = $2.77 Mil.
Cash Flow from Operations was -12.986 + -15.328 + -12.533 + -10.181 = $-51.03 Mil.
Accounts Receivable was $1.04 Mil.
Revenue was 3.543 + 1.924 + 0.562 + 7.027 = $13.06 Mil.
Gross Profit was -0.96 + -0.887 + -5.517 + -1.483 = $-8.85 Mil.
Total Current Assets was $61.28 Mil.
Total Assets was $142.22 Mil.
Property, Plant and Equipment(Net PPE) was $78.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.37 Mil.
Selling, General & Admin. Expense(SGA) was $37.80 Mil.
Total Current Liabilities was $18.66 Mil.
Long-Term Debt was $35.35 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)
=(1.664 / 5.584) / (1.036 / 13.056)
=0.29799427 / 0.07935049
=3.7554

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)
=(-3.353 / 13.056) / (-3.777 / 5.584)
=-0.67761949 / -2.23961318
=0.3026

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 - (14.937 + 83.242) / 100.255) / (1 - (61.283 + 78.132) / 142.22)
=0.0207072 / 0.01972296
=1.0499

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
=5.584 / 13.056
=0.4277

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))
=(3.374 / (3.374 + 78.132)) / (3.37 / (3.37 + 83.242))
=0.04139573 / 0.03890916
=1.0639

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)
=(23.638 / 5.584) / (37.804 / 13.056)
=4.23316619 / 2.89552696
=1.462

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)
=((22.543 + 17.112) / 100.255) / ((35.351 + 18.661) / 142.22)
=0.39554137 / 0.37977781
=1.0415

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
=(-60.408 - 2.769 - -51.028) / 100.255
=-0.1212

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 -1.46 signals that the company is likely to 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

Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.62895.7688
GMI -0.18650.2793
AQI 1.76040.9205
SGI 0.37780.3373
DEPI 3.34491.0549
SGAI 4.02981.7224
LVGI 1.20451.0428
TATA -0.0622-0.1527
M-score -4.310.06

Gevo Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.49660.38450.41440.62891.67973.1675.53115.76883.7554
GMI 1.48352.8893-0.4489-0.1865-0.0859-0.02070.16030.27930.3026
AQI 1.90214.45632.97041.76041.53810.65031.09160.92051.0499
SGI 2.04611.2470.64610.37780.20360.13930.2130.33730.4277
DEPI 1.33762.5043.26563.34492.27221.3311.20541.05491.0639
SGAI 0.68521.09972.84334.02985.0496.3362.88651.72241.462
LVGI 2.30472.351.68681.20450.95770.81260.84471.04281.0415
TATA -0.1434-0.2032-0.1208-0.0622-0.1017-0.0932-0.1075-0.1527-0.1212
M-score -2.39-1.67-4.15-4.31-3.93-3.19-0.170.06-1.46
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