Switch to:
GuruFocus has detected 4 Warning Signs with GigPeak Inc $GIG.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
GigPeak Inc (AMEX:GIG)
Beneish M-Score
-1.99 (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.

GigPeak Inc has a M-score of -1.99 signals that the company is a manipulator.

GIG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34   Max: -1.99
Current: -1.99

-3.34
-1.99

During the past 11 years, the highest Beneish M-Score of GigPeak Inc was -1.99. The lowest was -3.34. And the median was -2.72.


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 GigPeak 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 * 0.9902+0.528 * 0.9266+0.404 * 1.9832+0.892 * 1.4543+0.115 * 0.8679
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0096+4.679 * -0.0057-0.327 * 1.6628
=-1.99

* 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 $15.26 Mil.
Revenue was 16.217 + 15.796 + 15.368 + 11.362 = $58.74 Mil.
Gross Profit was 11.511 + 10.648 + 10.175 + 7.679 = $40.01 Mil.
Total Current Assets was $65.36 Mil.
Total Assets was $140.44 Mil.
Property, Plant and Equipment(Net PPE) was $3.84 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.15 Mil.
Selling, General & Admin. Expense(SGA) was $16.34 Mil.
Total Current Liabilities was $16.03 Mil.
Long-Term Debt was $9.85 Mil.
Net Income was 1.529 + 0.671 + 0.085 + -0.052 = $2.23 Mil.
Non Operating Income was -0.146 + 0.014 + -0.081 + -0.004 = $-0.22 Mil.
Cash Flow from Operations was -0.98 + 1.569 + -0.828 + 3.493 = $3.25 Mil.
Accounts Receivable was $10.60 Mil.
Revenue was 11.075 + 10.419 + 9.84 + 9.06 = $40.39 Mil.
Gross Profit was 7.217 + 6.657 + 6.229 + 5.393 = $25.50 Mil.
Total Current Assets was $48.30 Mil.
Total Assets was $69.11 Mil.
Property, Plant and Equipment(Net PPE) was $3.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.60 Mil.
Selling, General & Admin. Expense(SGA) was $11.13 Mil.
Total Current Liabilities was $7.66 Mil.
Long-Term Debt was $0.00 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)
=(15.258 / 58.743) / (10.596 / 40.394)
=0.25974159 / 0.26231619
=0.9902

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)
=(25.496 / 40.394) / (40.013 / 58.743)
=0.63118285 / 0.6811535
=0.9266

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 - (65.36 + 3.84) / 140.435) / (1 - (48.301 + 3.133) / 69.11)
=0.50724534 / 0.25576617
=1.9832

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
=58.743 / 40.394
=1.4543

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))
=(3.595 / (3.595 + 3.133)) / (6.152 / (6.152 + 3.84))
=0.53433413 / 0.61569255
=0.8679

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)
=(16.336 / 58.743) / (11.127 / 40.394)
=0.27809271 / 0.2754617
=1.0096

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)
=((9.853 + 16.029) / 140.435) / ((0 + 7.66) / 69.11)
=0.18429879 / 0.11083779
=1.6628

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
=(2.233 - -0.217 - 3.254) / 140.435
=-0.0057

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.

GigPeak Inc has a M-score of -1.99 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 local exchange's currency.

GigPeak Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.28450.98670.78940.87310.78961.26111.3911.08640.9902
GMI 0.70351.35090.8471.0590.93410.89551.03050.9250.9266
AQI 6.89122.70570.89920.80091.06890.76720.95160.92911.9832
SGI 3.0391.53561.81281.20061.13840.78741.1391.2261.4543
DEPI 0.76022.57540.4751.01530.92150.83570.85981.2280.8679
SGAI 0.44390.79470.49421.08230.89041.01820.98220.86411.0096
LVGI 0.19911.26751.05590.66010.99850.35671.34940.81431.6628
TATA -0.0559-0.2297-0.0117-0.2084-0.1352-0.1174-0.1261-0.0236-0.0057
M-score 1.89-2.09-2.12-3.34-3.18-2.94-2.72-2.27-1.99

GigPeak Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.98861.3911.15530.93731.02551.08640.8881.36591.06450.9902
GMI 1.04161.03051.0050.95440.93430.9250.90420.920.92730.9266
AQI 0.92420.95160.94940.90740.63990.92910.91821.97472.84061.9832
SGI 1.09361.1391.17791.19041.20831.2261.23321.3241.39741.4543
DEPI 0.83070.85980.90161.00271.09341.2281.13081.08580.99780.8679
SGAI 0.91940.98220.97870.90670.90860.86410.93350.98951.05561.0096
LVGI 0.36261.34941.13431.06430.86970.81430.71791.78582.02341.6628
TATA -0.0999-0.1261-0.0948-0.0878-0.0483-0.0236-0.0648-0.0172-0.0264-0.0057
M-score -2.68-2.72-2.69-2.84-2.61-2.27-2.64-1.83-1.83-1.99
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