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Micron Technology Inc (NAS:MU)
Beneish M-Score
-3.01 (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 -3.01 suggests that the company is not a manipulator.

MU' s Beneish M-Score Range Over the Past 10 Years
Min: -14.17   Max: 4.67
Current: -3.01

-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 -2.99.


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 * 0.9508+0.528 * 1.1603+0.404 * 1.1914+0.892 * 0.8863+0.115 * 0.9913
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0987+4.679 * -0.1077-0.327 * 1.0599
=-3.01

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

This Year (Nov15) TTM:Last Year (Nov14) TTM:
Accounts Receivable was $1,939 Mil.
Revenue was 3350 + 3600 + 3853 + 4166 = $14,969 Mil.
Gross Profit was 849 + 970 + 1202 + 1405 = $4,426 Mil.
Total Current Assets was $8,510 Mil.
Total Assets was $24,388 Mil.
Property, Plant and Equipment(Net PPE) was $11,060 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,761 Mil.
Selling, General & Admin. Expense(SGA) was $705 Mil.
Total Current Liabilities was $4,025 Mil.
Long-Term Debt was $6,326 Mil.
Net Income was 206 + 471 + 491 + 934 = $2,102 Mil.
Non Operating Income was -4 + 18 + -16 + -6 = $-8 Mil.
Cash Flow from Operations was 1120 + 1030 + 1335 + 1251 = $4,736 Mil.
Accounts Receivable was $2,301 Mil.
Revenue was 4573 + 4227 + 3982 + 4107 = $16,889 Mil.
Gross Profit was 1638 + 1385 + 1368 + 1403 = $5,794 Mil.
Total Current Assets was $9,672 Mil.
Total Assets was $22,542 Mil.
Property, Plant and Equipment(Net PPE) was $9,132 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,255 Mil.
Selling, General & Admin. Expense(SGA) was $724 Mil.
Total Current Liabilities was $4,419 Mil.
Long-Term Debt was $4,608 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)
=(1939 / 14969) / (2301 / 16889)
=0.12953437 / 0.13624252
=0.9508

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)
=(970 / 16889) / (849 / 14969)
=0.34306353 / 0.29567773
=1.1603

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 - (8510 + 11060) / 24388) / (1 - (9672 + 9132) / 22542)
=0.19755618 / 0.1658238
=1.1914

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
=14969 / 16889
=0.8863

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))
=(2255 / (2255 + 9132)) / (2761 / (2761 + 11060))
=0.19803284 / 0.19976847
=0.9913

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)
=(705 / 14969) / (724 / 16889)
=0.04709733 / 0.04286814
=1.0987

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)
=((6326 + 4025) / 24388) / ((4608 + 4419) / 22542)
=0.42443005 / 0.40045249
=1.0599

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
=(2102 - -8 - 4736) / 24388
=-0.1077

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 -3.01 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

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
DSRI 0.94080.84881.35990.94040.87850.86150.90122.01250.67660.8758
GMI 1.03091.202-20.12720.1028-0.28631.59951.70160.57750.61251.032
AQI 2.03810.87360.71021.43151.33710.77291.10651.31861.15291.3287
SGI 1.08031.07891.02690.82231.7661.03610.9371.10191.80290.9899
DEPI 1.191.03980.90690.8041.04511.03490.94081.21070.98110.9666
SGAI 1.30611.22910.72640.94620.84461.08221.11780.82260.69781.0274
LVGI 0.67711.6021.11321.23630.79430.99391.25251.21720.96290.9738
TATA -0.1542-0.0906-0.1954-0.2681-0.1182-0.1501-0.2216-0.0987-0.1173-0.0934
M-score -2.67-3.15-14.31-4.34-2.91-3.06-3.36-2.03-2.69-2.89

Micron Technology Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
DSRI 2.01252.07571.54361.03170.67660.60680.75170.8540.87580.9508
GMI 0.57750.42750.4340.52140.61250.75220.86730.94961.0321.1603
AQI 1.31861.23191.18471.41821.15291.21931.46091.55211.32871.1914
SGI 1.10191.4141.6541.82771.80291.49711.27331.12320.98990.8863
DEPI 1.21071.14711.10891.0620.98110.96970.95030.98340.96660.9913
SGAI 0.82260.74450.75770.77550.69780.78130.85650.90141.02741.0987
LVGI 1.21721.17481.19851.08780.96290.90350.86711.00530.97381.0599
TATA -0.0987-0.1265-0.13-0.1353-0.1173-0.0932-0.0787-0.0825-0.0934-0.1077
M-score -2.03-1.92-2.24-2.41-2.69-2.81-2.65-2.68-2.89-3.01
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