GRMN 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.
Garmin Ltd has a M-score of -2.52 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Garmin Ltd was -1.19. The lowest was -3.31. And the median was -2.32.
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 Garmin Ltd 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 * 1.0469||+||0.528 * 0.9758||+||0.404 * 1.009||+||0.892 * 0.9971||+||0.115 * 1.1261|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9447||+||4.679 * -0.0133||-||0.327 * 1.1111|
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $470 Mil.|
Revenue was 583.221 + 759.695 + 643.637 + 696.563 = $2,683 Mil.
Gross Profit was 330.834 + 394.638 + 352.889 + 383.64 = $1,462 Mil.
Total Current Assets was $2,387 Mil.
Total Assets was $4,739 Mil.
Property, Plant and Equipment(Net PPE) was $417 Mil.
Depreciation, Depletion and Amortization(DDA) was $76 Mil.
Selling, General & Admin. Expense(SGA) was $474 Mil.
Total Current Liabilities was $697 Mil.
Long-Term Debt was $0 Mil.
Net Income was 118.818 + 163.585 + 187.669 + 172.491 = $643 Mil.
Non Operating Income was 12.33 + 22.309 + 0.616 + 28.52 = $64 Mil.
Cash Flow from Operations was 71.173 + 149.813 + 216.61 + 204.298 = $642 Mil.
|Accounts Receivable was $451 Mil.
Revenue was 531.957 + 768.548 + 672.376 + 718.154 = $2,691 Mil.
Gross Profit was 276.133 + 373.854 + 359.055 + 421.813 = $1,431 Mil.
Total Current Assets was $2,314 Mil.
Total Assets was $4,570 Mil.
Property, Plant and Equipment(Net PPE) was $408 Mil.
Depreciation, Depletion and Amortization(DDA) was $86 Mil.
Selling, General & Admin. Expense(SGA) was $503 Mil.
Total Current Liabilities was $605 Mil.
Long-Term Debt was $0 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)|
|=||(470.319 / 2683.116)||/||(450.594 / 2691.035)|
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)|
|=||(394.638 / 2691.035)||/||(330.834 / 2683.116)|
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 - (2387.495 + 417.164) / 4738.914)||/||(1 - (2313.955 + 407.591) / 4570.42)|
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))|
|=||(85.958 / (85.958 + 407.591))||/||(76.326 / (76.326 + 417.164))|
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)|
|=||(474.129 / 2683.116)||/||(503.358 / 2691.035)|
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)|
|=||((0 + 697.108) / 4738.914)||/||((0 + 605.101) / 4570.42)|
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|
|=||(642.563 - 63.775||-||641.894)||/||4738.914|
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.
Garmin Ltd has a M-score of -2.52 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
Garmin Ltd Annual Data
Garmin Ltd Quarterly Data