Switch to:
Micron Technology Inc (NAS:MU)
Beneish M-Score
-2.60 (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.

Micron Technology Inc has a M-score of -2.60 suggests that the company is not a manipulator.

MU' s 10-Year Beneish M-Score Range
Min: -14.49   Max: 4.67
Current: -2.6

-14.49
4.67

During the past 13 years, the highest Beneish M-Score of Micron Technology Inc was 4.67. The lowest was -14.49. And the median was -2.99.


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 Micron Technology 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 * 1.3936+0.528 * 0.434+0.404 * 1.1847+0.892 * 1.654+0.115 * 0.8467
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7577+4.679 * -0.1717-0.327 * 1.1985
=-2.60

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $2,826 Mil.
Revenue was 4107 + 4042 + 2843 + 2318 = $13,310 Mil.
Gross Profit was 1403 + 1281 + 708 + 556 = $3,948 Mil.
Total Current Assets was $9,991 Mil.
Total Assets was $20,615 Mil.
Property, Plant and Equipment(Net PPE) was $7,859 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,690 Mil.
Selling, General & Admin. Expense(SGA) was $673 Mil.
Total Current Liabilities was $5,305 Mil.
Long-Term Debt was $4,317 Mil.
Net Income was 731 + 358 + 1708 + 43 = $2,840 Mil.
Non Operating Income was -122 + -80 + 1529 + -45 = $1,282 Mil.
Cash Flow from Operations was 1390 + 1507 + 1577 + 624 = $5,098 Mil.
Accounts Receivable was $1,226 Mil.
Revenue was 2078 + 1834 + 1963 + 2172 = $8,047 Mil.
Gross Profit was 366 + 217 + 219 + 234 = $1,036 Mil.
Total Current Assets was $5,364 Mil.
Total Assets was $13,912 Mil.
Property, Plant and Equipment(Net PPE) was $6,973 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,920 Mil.
Selling, General & Admin. Expense(SGA) was $537 Mil.
Total Current Liabilities was $2,117 Mil.
Long-Term Debt was $3,301 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)
=(2826 / 13310) / (1226 / 8047)
=0.21232156 / 0.15235491
=1.3936

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)
=(1281 / 8047) / (1403 / 13310)
=0.12874363 / 0.29661908
=0.434

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 - (9991 + 7859) / 20615) / (1 - (5364 + 6973) / 13912)
=0.13412564 / 0.11321162
=1.1847

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
=13310 / 8047
=1.654

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))
=(1920 / (1920 + 6973)) / (2690 / (2690 + 7859))
=0.21590015 / 0.25500047
=0.8467

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)
=(673 / 13310) / (537 / 8047)
=0.05056349 / 0.06673294
=0.7577

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)
=((4317 + 5305) / 20615) / ((3301 + 2117) / 13912)
=0.46674751 / 0.38944796
=1.1985

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
=(2840 - 1282 - 5098) / 20615
=-0.1717

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.

Micron Technology Inc has a M-score of -2.60 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.

Micron Technology Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
DSRI 0.84560.92581.11450.96371.0110.94041.08640.94370.9191.6397
GMI -0.02241.27151.03091.202-20.12720.1028-0.28631.59951.70160.5775
AQI 0.61630.94082.03810.87360.71021.43151.33710.77291.10651.3186
SGI 1.42461.10811.08031.07891.02690.82231.7661.03610.9371.1019
DEPI 1.02990.96581.191.03980.90690.8041.04511.03490.94081.2107
SGAI 0.58410.88351.30611.22910.72640.94620.84461.08221.11780.8226
LVGI 0.9270.96880.67711.6021.11321.23630.79430.99391.25251.2172
TATA -0.1295-0.1307-0.1542-0.0906-0.1954-0.2681-0.1182-0.1501-0.222-0.0987
M-score -3.45-2.92-2.51-3.04-14.63-4.34-2.71-2.99-3.35-2.37

Micron Technology Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 0.98110.96240.91260.8841.03571.16551.65131.77181.39360.9884
GMI 1.71291.82181.61671.52851.26330.80360.60780.45230.4340.5214
AQI 0.67711.09361.10651.25711.42540.89261.31861.23191.18471.4182
SGI 0.90810.92650.94360.93160.95390.96741.09421.40381.6541.8277
DEPI 0.94350.95160.94081.02121.07921.11420.91250.86850.84670.8213
SGAI 1.12621.18771.10991.04670.89220.82560.82840.74990.75770.7755
LVGI 1.09641.30881.25251.34231.30791.11741.21721.17481.19851.0878
TATA -0.1727-0.2043-0.2869-0.2865-0.2555-0.2194-0.1467-0.17-0.1717-0.1772
M-score -3.20-3.20-3.69-3.72-3.45-3.53-2.61-2.43-2.60-2.68
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)
Free 7-day Trial
FEEDBACK