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Gevo Inc (NAS:GEVO)
Beneish M-Score
-2.84 (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 -2.84 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: -2.84

-4.31
6.15

During the past 7 years, the highest Beneish M-Score of Gevo Inc was 6.15. The lowest was -4.31. And the median was -1.14.


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 * 0.3513+0.528 * 1.7721+0.404 * 1.001+0.892 * 1.5807+0.115 * 0.5921
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6023+4.679 * -0.1493-0.327 * 1.0277
=-2.84

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1.13 Mil.
Revenue was 8.017 + 8.924 + 5.899 + 9.501 = $32.34 Mil.
Gross Profit was -2.612 + -0.974 + -3.335 + -1.372 = $-8.29 Mil.
Total Current Assets was $20.66 Mil.
Total Assets was $100.95 Mil.
Property, Plant and Equipment(Net PPE) was $76.51 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.56 Mil.
Selling, General & Admin. Expense(SGA) was $18.24 Mil.
Total Current Liabilities was $10.53 Mil.
Long-Term Debt was $37.36 Mil.
Net Income was -6.519 + -14.37 + -7.343 + -11.079 = $-39.31 Mil.
Non Operating Income was 4.876 + -5.81 + 4.228 + -0.137 = $3.16 Mil.
Cash Flow from Operations was -6.127 + -5.396 + -9.489 + -6.384 = $-27.40 Mil.
Accounts Receivable was $2.04 Mil.
Revenue was 10.141 + 7.721 + 0.903 + 1.695 = $20.46 Mil.
Gross Profit was -1.619 + -0.548 + -3.777 + -3.353 = $-9.30 Mil.
Total Current Assets was $20.94 Mil.
Total Assets was $107.48 Mil.
Property, Plant and Equipment(Net PPE) was $82.51 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.05 Mil.
Selling, General & Admin. Expense(SGA) was $19.16 Mil.
Total Current Liabilities was $10.56 Mil.
Long-Term Debt was $39.05 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)
=(1.134 / 32.341) / (2.042 / 20.46)
=0.03506385 / 0.0998045
=0.3513

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)
=(-0.974 / 20.46) / (-2.612 / 32.341)
=-0.45439883 / -0.25642373
=1.7721

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 - (20.658 + 76.505) / 100.953) / (1 - (20.94 + 82.51) / 107.481)
=0.03754222 / 0.0375043
=1.001

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
=32.341 / 20.46
=1.5807

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))
=(4.049 / (4.049 + 82.51)) / (6.563 / (6.563 + 76.505))
=0.04677734 / 0.07900756
=0.5921

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)
=(18.239 / 32.341) / (19.159 / 20.46)
=0.56395906 / 0.93641251
=0.6023

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)
=((37.362 + 10.526) / 100.953) / ((39.045 + 10.563) / 107.481)
=0.47435936 / 0.46155134
=1.0277

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
=(-39.311 - 3.157 - -27.396) / 100.953
=-0.1493

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 -2.84 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

Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.15070.26370.62895.76880.5058
GMI 5.5582.932-0.18650.27934.5518
AQI 10.39540.13871.76040.92052.1546
SGI 24.84243.93690.37780.33733.437
DEPI 2.05640.86793.34491.05490.6893
SGAI 0.10940.31044.02981.72240.2089
LVGI 1.40410.51521.20451.04281.3529
TATA -0.3292-0.1102-0.0622-0.1527-0.1295
M-score 23.73-0.12-4.310.060.96

Gevo Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 3.1675.53115.76883.75544.26910.97310.50580.21670.24960.3513
GMI -0.02070.16030.27930.30261.17161.88054.551810.83714.65981.7721
AQI 0.65031.09160.92051.04992.08351.87412.15461.96540.86581.001
SGI 0.13930.2130.33730.42771.45112.42043.4375.95673.01111.5807
DEPI 1.3311.20541.05491.06391.09040.82850.68930.58070.4890.5921
SGAI 6.3362.88651.72241.4620.4440.28570.20890.12630.24880.6023
LVGI 0.81260.84471.04281.04151.5491.45571.35291.31090.82641.0277
TATA -0.0932-0.1075-0.1527-0.1212-0.0858-0.0736-0.1295-0.1406-0.1266-0.1493
M-score -3.19-0.170.06-1.460.98-0.810.966.150.04-2.84
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