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iGo Inc (OTCPK:IGOI)
Beneish M-Score
-11.76 (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.

iGo Inc has a M-score of -11.76 suggests that the company is not a manipulator.

IGOI' s 10-Year Beneish M-Score Range
Min: -11.76   Max: -0.5
Current: -11.76

-11.76
-0.5

During the past 13 years, the highest Beneish M-Score of iGo Inc was -0.50. The lowest was -11.76. And the median was -3.31.


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 iGo 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 * 0.455+0.528 * -5.8583+0.404 * 0.5073+0.892 * 0.5666+0.115 * 0.9225
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5031+4.679 * -0.9253-0.327 * 1.4599
=-11.76

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1.07 Mil.
Revenue was 3.21 + 3.429 + 4.708 + 5.582 = $16.93 Mil.
Gross Profit was -1.146 + -0.474 + 0.228 + 0.881 = $-0.51 Mil.
Total Current Assets was $11.67 Mil.
Total Assets was $12.10 Mil.
Property, Plant and Equipment(Net PPE) was $0.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.79 Mil.
Selling, General & Admin. Expense(SGA) was $10.46 Mil.
Total Current Liabilities was $2.70 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.917 + -4.799 + -2.358 + -2.493 = $-12.57 Mil.
Non Operating Income was 0.014 + 0.046 + 0.143 + -0.176 = $0.03 Mil.
Cash Flow from Operations was -0.317 + -2.066 + 1.107 + -0.119 = $-1.40 Mil.
Accounts Receivable was $4.13 Mil.
Revenue was 6.406 + 7.931 + 7.292 + 8.247 = $29.88 Mil.
Gross Profit was 0.894 + 1.507 + 1.437 + 1.445 = $5.28 Mil.
Total Current Assets was $23.20 Mil.
Total Assets was $24.87 Mil.
Property, Plant and Equipment(Net PPE) was $0.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.67 Mil.
Selling, General & Admin. Expense(SGA) was $12.28 Mil.
Total Current Liabilities was $3.80 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)
=(1.065 / 16.929) / (4.131 / 29.876)
=0.0629098 / 0.13827152
=0.455

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)
=(-0.474 / 29.876) / (-1.146 / 16.929)
=0.1768309 / -0.03018489
=-5.8583

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 - (11.669 + 0.133) / 12.103) / (1 - (23.201 + 0.445) / 24.865)
=0.02486987 / 0.04902473
=0.5073

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
=16.929 / 29.876
=0.5666

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))
=(1.674 / (1.674 + 0.445)) / (0.793 / (0.793 + 0.133))
=0.78999528 / 0.85637149
=0.9225

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)
=(10.459 / 16.929) / (12.28 / 29.876)
=0.61781558 / 0.41103227
=1.5031

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 + 2.701) / 12.103) / ((0 + 3.801) / 24.865)
=0.22316781 / 0.15286547
=1.4599

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
=(-12.567 - 0.027 - -1.395) / 12.103
=-0.9253

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.

iGo Inc has a M-score of -11.76 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.

iGo Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.09190.91221.0270.96550.74730.64151.90460.7620.91270.455
GMI 1.16360.98551.20931.00950.84560.9450.93241.50591.2481-5.8465
AQI 0.83090.62671.02270.29430.56780.94143.9570.9470.45910.5073
SGI 1.35361.21771.08140.84050.99260.63440.88580.8850.77860.5666
DEPI 0.91810.84850.96050.8181.30320.91050.89680.93590.95530.9225
SGAI 0.78041.02471.05181.16430.85781.10211.18611.13351.02091.5033
LVGI 1.45221.06640.88241.20530.70620.60021.22951.09570.88891.4599
TATA -0.0497-0.01660.0378-0.2446-0.1355-0.07280.0447-0.1304-0.2573-0.9253
M-score -2.41-2.65-2.06-4.19-3.45-3.43-0.50-3.23-4.02-11.76

iGo Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.77030.7621.42570.84370.84330.91270.93010.91760.43190.455
GMI 1.16541.50581.74421.84371.79631.24811.0881.17972.0798-5.8583
AQI 5.08350.9470.86750.64280.60730.45910.44670.20270.24320.5073
SGI 1.07220.8850.84180.7440.74790.77860.72770.72750.62660.5666
DEPI 0.91440.93590.94880.9610.98690.95530.9350.9380.9240.9225
SGAI 1.09091.13361.1041.12341.08061.0211.05410.99551.35181.5031
LVGI 0.47831.09571.0581.27371.52260.88890.95941.02280.98461.4599
TATA 0.1472-0.1304-0.1634-0.3477-0.3684-0.2573-0.3427-0.4283-0.7585-0.9253
M-score -0.06-3.23-2.70-4.29-4.50-4.02-4.57-5.04-6.68-11.76
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