Switch to:
Micron Technology Inc (NAS:MU)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

MU' s 10-Year Beneish M-Score Range
Min: -14.17   Max: 4.67
Current: -2.68

-14.17
4.67

During the past 13 years, the highest Beneish M-Score of Micron Technology Inc was 4.67. The lowest was -14.17. And the median was -2.80.


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 * 0.6766+0.528 * 0.6125+0.404 * 1.1757+0.892 * 1.8029+0.115 * 0.9811
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6978+4.679 * -0.1169-0.327 * 0.9676
=-2.68

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $2,524 Mil.
Revenue was 4227 + 3982 + 4107 + 4042 = $16,358 Mil.
Gross Profit was 1385 + 1368 + 1403 + 1281 = $5,437 Mil.
Total Current Assets was $10,245 Mil.
Total Assets was $22,498 Mil.
Property, Plant and Equipment(Net PPE) was $8,682 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,103 Mil.
Selling, General & Admin. Expense(SGA) was $707 Mil.
Total Current Liabilities was $4,811 Mil.
Long-Term Debt was $4,955 Mil.
Net Income was 1150 + 806 + 731 + 358 = $3,045 Mil.
Non Operating Income was 198 + -21 + -122 + -80 = $-25 Mil.
Cash Flow from Operations was 1347 + 1455 + 1390 + 1507 = $5,699 Mil.
Accounts Receivable was $2,069 Mil.
Revenue was 2843 + 2318 + 2078 + 1834 = $9,073 Mil.
Gross Profit was 708 + 556 + 366 + 217 = $1,847 Mil.
Total Current Assets was $8,911 Mil.
Total Assets was $19,118 Mil.
Property, Plant and Equipment(Net PPE) was $7,626 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,804 Mil.
Selling, General & Admin. Expense(SGA) was $562 Mil.
Total Current Liabilities was $4,125 Mil.
Long-Term Debt was $4,452 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)
=(2524 / 16358) / (2069 / 9073)
=0.15429759 / 0.22803924
=0.6766

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)
=(1368 / 9073) / (1385 / 16358)
=0.20357103 / 0.3323756
=0.6125

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 - (10245 + 8682) / 22498) / (1 - (8911 + 7626) / 19118)
=0.15872522 / 0.13500366
=1.1757

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
=16358 / 9073
=1.8029

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))
=(1804 / (1804 + 7626)) / (2103 / (2103 + 8682))
=0.19130435 / 0.19499305
=0.9811

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)
=(707 / 16358) / (562 / 9073)
=0.04322044 / 0.06194203
=0.6978

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)
=((4955 + 4811) / 22498) / ((4452 + 4125) / 19118)
=0.43408303 / 0.44863479
=0.9676

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
=(3045 - -25 - 5699) / 22498
=-0.1169

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 -2.68 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DSRI 0.92580.94080.84881.35990.94040.87850.86150.90122.01250.6766
GMI 1.27151.03091.202-20.12720.1028-0.28631.59951.70160.57750.6125
AQI 0.94082.03810.87360.71021.43151.33710.77291.10651.31861.1757
SGI 1.10811.08031.07891.02690.82231.7661.03610.9371.10191.8029
DEPI 0.96581.191.03980.90690.8041.04511.03490.94081.21070.9811
SGAI 0.88351.30611.22910.72640.94620.84461.08221.11780.82260.6978
LVGI 0.96880.67711.6021.11321.23630.79430.99391.25251.21720.9676
TATA -0.1307-0.1542-0.0906-0.1954-0.2681-0.1182-0.1501-0.2216-0.0987-0.1169
M-score -2.92-2.67-3.15-14.31-4.34-2.91-3.06-3.36-2.03-2.68

Micron Technology Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 0.99290.90120.89211.13811.31892.01252.07571.54361.03170.6766
GMI 1.90741.70161.61751.21820.76750.57750.42750.4340.52140.6125
AQI 1.09361.10651.25711.42540.89261.31861.23191.18471.41821.1757
SGI 0.92010.9370.92490.96050.97411.10191.4141.6541.82771.8029
DEPI 0.95160.94081.02121.07921.11421.21071.14711.10891.0620.9811
SGAI 1.19581.11781.05430.8860.820.82260.74450.75770.77550.6978
LVGI 1.30881.25251.34231.29051.11741.21721.17481.19851.08780.9676
TATA -0.208-0.2224-0.2166-0.1808-0.1456-0.0987-0.1265-0.13-0.1353-0.1169
M-score -3.15-3.36-3.35-3.01-3.05-2.03-1.92-2.24-2.41-2.68
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