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MOD-PAC Corporation (NAS:MPAC)
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.

MOD-PAC Corporation has a M-score of -2.94 suggests that the company is not a manipulator.

MPAC' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of MOD-PAC Corporation 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 MOD-PAC Corporation 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 * 0.979+0.528 * 0.7848+0.404 * 1.2483+0.892 * 1.08+0.115 * 0.9155
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0437+4.679 * -0.1135-0.327 * 0.8531
=-2.94

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

This Year (Jun13) TTM:Last Year (Jun12) TTM:
Accounts Receivable was $6.29 Mil.
Revenue was 14.294 + 14.42 + 16.617 + 15.374 = $60.71 Mil.
Gross Profit was 2.43 + 2.641 + 3.867 + 3.302 = $12.24 Mil.
Total Current Assets was $17.79 Mil.
Total Assets was $33.12 Mil.
Property, Plant and Equipment(Net PPE) was $14.34 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.18 Mil.
Selling, General & Admin. Expense(SGA) was $8.47 Mil.
Total Current Liabilities was $2.68 Mil.
Long-Term Debt was $1.80 Mil.
Net Income was 0.019 + 0.325 + 1.037 + 0.895 = $2.28 Mil.
Non Operating Income was 0.003 + -0.002 + -0.016 + -0.046 = $-0.06 Mil.
Cash Flow from Operations was 0.389 + 0.752 + 2.731 + 2.224 = $6.10 Mil.
Accounts Receivable was $5.95 Mil.
Revenue was 13.49 + 13.801 + 14.559 + 14.36 = $56.21 Mil.
Gross Profit was 1.786 + 1.775 + 2.506 + 2.828 = $8.90 Mil.
Total Current Assets was $14.43 Mil.
Total Assets was $30.65 Mil.
Property, Plant and Equipment(Net PPE) was $15.49 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.09 Mil.
Selling, General & Admin. Expense(SGA) was $7.52 Mil.
Total Current Liabilities was $3.06 Mil.
Long-Term Debt was $1.80 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)
=(6.29 / 60.705) / (5.949 / 56.21)
=0.10361585 / 0.10583526
=0.979

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)
=(2.641 / 56.21) / (2.43 / 60.705)
=0.15824586 / 0.20163084
=0.7848

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 - (17.794 + 14.338) / 33.118) / (1 - (14.431 + 15.488) / 30.65)
=0.02977233 / 0.02384992
=1.2483

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
=60.705 / 56.21
=1.08

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))
=(3.085 / (3.085 + 15.488)) / (3.178 / (3.178 + 14.338))
=0.16610133 / 0.18143412
=0.9155

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)
=(8.474 / 60.705) / (7.518 / 56.21)
=0.13959311 / 0.13374844
=1.0437

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)
=((1.8 + 2.677) / 33.118) / ((1.8 + 3.057) / 30.65)
=0.13518328 / 0.15846656
=0.8531

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
=(2.276 - -0.061 - 6.096) / 33.118
=-0.1135

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.

MOD-PAC Corporation has a M-score of -2.94 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.

MOD-PAC Corporation Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 0.79770.78921.28450.87691.09991.01481.02170.98871.0155
GMI 0.89540.66564.2781.00050.67380.91130.83950.98291.0104
AQI 2.23880.39031.28361.0781.02580.52410.78440.88421.6094
SGI 1.21991.41590.6541.0351.014710.99641.1541.0544
DEPI 0.88550.86940.98360.92781.19050.8611.04710.9171.0358
SGAI 1.01890.96611.38361.0040.78740.95930.93810.91961.0055
LVGI 0.64580.69811.06631.07491.1950.88530.75261.11140.9175
TATA -0.45880.3163-0.1105-0.0823-0.0668-0.1652-0.039-0.0649-0.0918
M-score -4.07-1.16-1.29-2.95-2.85-3.45-2.72-2.74-2.56

MOD-PAC Corporation Quarterly Data

Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13
DSRI 1.19751.0580.92740.98870.80040.97510.99431.01551.02280.979
GMI 0.87721.00171.06020.98291.04061.19611.12371.01030.90310.7848
AQI 0.84190.82720.82090.88421.27951.51191.73891.60941.54851.2483
SGI 1.04181.07351.11881.1541.10861.07091.05061.05441.06751.08
DEPI 0.97320.88160.91670.9171.01961.03821.0211.03580.93220.9155
SGAI 0.93030.92150.91180.91960.96130.97911.00111.00560.99391.0437
LVGI 1.05270.88341.1161.11140.83211.0940.91550.91750.94770.8531
TATA -0.0178-0.0373-0.0761-0.0649-0.0711-0.0582-0.0926-0.0918-0.121-0.1135
M-score -2.48-2.57-2.87-2.74-2.70-2.42-2.48-2.56-2.78-2.94
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