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Molex, Inc. (NAS:MOLX)
Beneish M-Score
0.00 (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.

Molex, Inc. has a M-score of -2.47 suggests that the company is not a manipulator.

During the past 13 years, the highest Beneish M-Score of Molex, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.

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 Molex, 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 * 0.9113 + 0.528 * 0.9982 + 0.404 * 1.2495 + 0.892 * 1.0489 + 0.115 * 0.9612 - 0.172 * SGAI + 4.679 * TATA - 0.327 * LVGI - 0.172 * 1.0226 + 4.679 * -0.0148 - 0.327 * 0.9215 = -2.47

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

 This Year (Sep13) TTM: Last Year (Sep12) TTM: Accounts Receivable was \$737 Mil. Revenue was 936.367 + 882.933 + 852.858 + 967.735 = \$3,640 Mil. Gross Profit was 302.551 + 256.995 + 248.532 + 289.17 = \$1,097 Mil. Total Current Assets was \$2,088 Mil. Total Assets was \$3,686 Mil. Property, Plant and Equipment(Net PPE) was \$1,128 Mil. Depreciation, Depletion and Amortization(DDA) was \$234 Mil. Selling, General & Admin. Expense(SGA) was \$702 Mil. Total Current Liabilities was \$686 Mil. Long-Term Debt was \$315 Mil. Net Income was 84.079 + 57.148 + 44.767 + 70.394 = \$256 Mil. Non Operating Income was -2.918 + 2.591 + 0.265 + -3.151 = \$-3 Mil. Cash Flow from Operations was 98.851 + 148.062 + -20.087 + 87.173 = \$314 Mil. Accounts Receivable was \$771 Mil. Revenue was 916.921 + 858.526 + 837.08 + 857.598 = \$3,470 Mil. Gross Profit was 268.417 + 257.622 + 255.176 + 262.937 = \$1,044 Mil. Total Current Assets was \$2,185 Mil. Total Assets was \$3,746 Mil. Property, Plant and Equipment(Net PPE) was \$1,179 Mil. Depreciation, Depletion and Amortization(DDA) was \$233 Mil. Selling, General & Admin. Expense(SGA) was \$654 Mil. Total Current Liabilities was \$954 Mil. Long-Term Debt was \$150 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of daysÂ’ 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) = (736.983 / 3639.893) / (770.976 / 3470.125) = 0.20247381 / 0.22217528 = 0.9113

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) = (1044.152 / 3470.125) / (1097.248 / 3639.893) = 0.30089752 / 0.30145062 = 0.9982

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 - (2087.704 + 1128.494) / 3686.017) / (1 - (2184.878 + 1178.875) / 3745.878) = 0.1274598 / 0.10201213 = 1.2495

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 = 3639.893 / 3470.125 = 1.0489

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)) = (233.477 / (233.477 + 1178.875)) / (234.388 / (234.388 + 1128.494)) = 0.16531077 / 0.17197967 = 0.9612

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) = (701.89 / 3639.893) / (654.351 / 3470.125) = 0.19283259 / 0.18856698 = 1.0226

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) = ((315 + 686.451) / 3686.017) / ((150 + 954.469) / 3745.878) = 0.2716892 / 0.29484916 = 0.9215

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 = (256.388 - -3.213 - 313.999) / 3686.017 = -0.0148

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.

Molex, Inc. has a M-score of -2.47 suggests that the company will not be a manipulator.

Related Terms

Historical Data

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

Molex, Inc. Annual Data

 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 DSRI 1.095 0.898 1.0907 0.9093 1.0602 0.9204 1.193 0.9256 0.9519 0.9024 GMI 0.953 1.0131 0.9816 1.1213 1.0216 1.199 0.8562 0.9786 0.9906 1.0428 AQI 0.9487 0.9135 0.9914 1.3565 0.9827 0.7866 0.8903 0.8296 1.0166 1.1313 SGI 1.219 1.1344 1.1227 1.1414 1.0191 0.7757 1.1648 1.1929 0.9726 1.0376 DEPI 1.0088 0.9594 1.1542 0.9886 0.9882 0.9368 1.025 1.0745 1.0052 0.9809 SGAI 0.9092 0.9885 0.9457 0.872 0.9913 1.1373 0.8938 0.8831 1.0509 1.0046 LVGI 1.0768 1.0219 1.1549 0.9785 1.1128 1.1446 1.3384 0.9067 0.9349 0.941 TATA -0.0509 -0.0969 -0.0721 -0.066 -0.0765 -0.2435 -0.0534 -0.048 -0.0827 -0.039 M-score -2.49 -2.95 -2.66 -2.51 -2.80 -3.95 -2.62 -2.62 -2.92 -2.63

Molex, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 DSRI 0.9256 0.8829 0.8855 0.9214 0.9519 1.029 1.0536 0.8948 0.9024 0.9113 GMI 0.9786 0.9908 0.9923 0.9766 0.9906 1.0136 1.0251 1.0418 1.0428 0.9982 AQI 0.8296 0.8482 0.9256 0.8871 1.0166 1 1.0411 1.121 1.1313 1.2495 SGI 1.1929 1.1222 1.0526 1.0066 0.9726 0.9571 0.9996 1.0146 1.0376 1.0489 DEPI 1.0745 0.9996 0.99 0.9888 1.0052 1.0645 1.0644 1.0293 0.9809 0.9612 SGAI 0.8831 0.939 0.997 1.0444 1.0553 1.0428 1.0113 0.995 1.0004 1.0226 LVGI 0.9067 0.9431 0.9456 0.9133 0.9349 0.9567 0.9745 0.9237 0.941 0.9215 TATA -0.048 -0.0715 -0.0807 -0.0802 -0.0827 -0.0869 -0.0692 -0.0338 -0.039 -0.0148 M-score -2.62 -2.85 -2.93 -2.96 -2.92 -2.88 -2.71 -2.62 -2.63 -2.47
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