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Micron Technology Inc (NAS:MU)
Beneish M-Score
-3.15 (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 -3.15 suggests that the company is not a manipulator.

MU' s Beneish M-Score Range Over the Past 10 Years
Min: -14.31   Max: 4.67
Current: -3.15

-14.31
4.67

During the past 13 years, the highest Beneish M-Score of Micron Technology Inc was 4.67. The lowest was -14.31. And the median was -2.90.


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 * 1.0534+0.528 * 1.5942+0.404 * 0.5898+0.892 * 0.7657+0.115 * 1.1959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1969+4.679 * -0.1231-0.327 * 1.2074
=-3.15

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $1,765 Mil.
Revenue was 3217 + 2898 + 2934 + 3350 = $12,399 Mil.
Gross Profit was 579 + 498 + 579 + 849 = $2,505 Mil.
Total Current Assets was $9,495 Mil.
Total Assets was $27,540 Mil.
Property, Plant and Equipment(Net PPE) was $14,686 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,980 Mil.
Selling, General & Admin. Expense(SGA) was $659 Mil.
Total Current Liabilities was $4,835 Mil.
Long-Term Debt was $9,154 Mil.
Net Income was -170 + -215 + -97 + 206 = $-276 Mil.
Non Operating Income was -10 + -34 + -6 + -4 = $-54 Mil.
Cash Flow from Operations was 896 + 389 + 763 + 1120 = $3,168 Mil.
Accounts Receivable was $2,188 Mil.
Revenue was 3600 + 3853 + 4166 + 4573 = $16,192 Mil.
Gross Profit was 970 + 1202 + 1405 + 1638 = $5,215 Mil.
Total Current Assets was $8,596 Mil.
Total Assets was $24,143 Mil.
Property, Plant and Equipment(Net PPE) was $10,554 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,667 Mil.
Selling, General & Admin. Expense(SGA) was $719 Mil.
Total Current Liabilities was $3,905 Mil.
Long-Term Debt was $6,252 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)
=(1765 / 12399) / (2188 / 16192)
=0.14235019 / 0.13512846
=1.0534

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)
=(5215 / 16192) / (2505 / 12399)
=0.32207263 / 0.20203242
=1.5942

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 - (9495 + 14686) / 27540) / (1 - (8596 + 10554) / 24143)
=0.12196805 / 0.20680943
=0.5898

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
=12399 / 16192
=0.7657

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))
=(2667 / (2667 + 10554)) / (2980 / (2980 + 14686))
=0.20172453 / 0.16868561
=1.1959

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)
=(659 / 12399) / (719 / 16192)
=0.05314945 / 0.04440464
=1.1969

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)
=((9154 + 4835) / 27540) / ((6252 + 3905) / 24143)
=0.50795207 / 0.42070165
=1.2074

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
=(-276 - -54 - 3168) / 27540
=-0.1231

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 -3.15 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 local exchange's currency.

Micron Technology Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
DSRI 0.84881.35990.94040.87850.86150.90122.01250.67660.87581.0534
GMI 1.202-20.12720.1028-0.28631.59951.70160.57750.61251.0321.5942
AQI 0.87360.71021.43151.33710.77291.10651.31861.15291.32870.5898
SGI 1.07891.02690.82231.7661.03610.9371.10191.80290.98990.7657
DEPI 1.03980.90690.8041.04511.03490.94081.21070.98110.96661.1959
SGAI 1.22910.72640.94620.84461.08221.11780.82260.69781.02741.1969
LVGI 1.6021.11321.23630.79430.99391.25251.21720.96290.97381.2074
TATA -0.0854-0.1954-0.2681-0.1182-0.1497-0.2216-0.0987-0.1173-0.0934-0.1231
M-score -3.12-14.31-4.34-2.91-3.06-3.36-2.03-2.69-2.89-3.15

Micron Technology Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 1.03170.67660.60680.75170.8540.87580.95080.85691.01961.0534
GMI 0.52140.61250.75220.86730.94961.0321.16031.3051.47741.5942
AQI 1.41821.15291.21931.46091.55211.32871.19140.86260.65030.5898
SGI 1.82771.80291.49711.27331.12320.98990.88630.81050.760.7657
DEPI 1.0620.98110.96970.95030.98340.96660.99131.04161.10381.1959
SGAI 0.77550.69780.78130.85650.90141.02741.09871.16481.2131.1969
LVGI 1.08780.96290.90350.86711.00530.97381.05991.08571.13891.2074
TATA -0.1353-0.1173-0.0932-0.0787-0.0825-0.0934-0.1077-0.1277-0.1078-0.1231
M-score -2.41-2.69-2.81-2.65-2.68-2.89-3.01-3.32-3.14-3.15
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