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Orbit International Corp (NAS:ORBT)
Beneish M-Score
-4.96 (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.

Orbit International Corp has a M-score of -4.96 suggests that the company is not a manipulator.

ORBT' s 10-Year Beneish M-Score Range
Min: -4.96   Max: 2.3
Current: -4.96

-4.96
2.3

During the past 13 years, the highest Beneish M-Score of Orbit International Corp was 2.30. The lowest was -4.96. And the median was -2.46.


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 Orbit International Corp 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 * 0.7376+0.528 * 1.0987+0.404 * 0.4015+0.892 * 0.778+0.115 * 0.4396
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3038+4.679 * -0.3738-0.327 * 0.961
=-4.96

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2.40 Mil.
Revenue was 5.396 + 5.007 + 5.807 + 6.109 = $22.32 Mil.
Gross Profit was 2.237 + 1.5 + 1.989 + 2.366 = $8.09 Mil.
Total Current Assets was $16.73 Mil.
Total Assets was $18.36 Mil.
Property, Plant and Equipment(Net PPE) was $0.72 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.63 Mil.
Selling, General & Admin. Expense(SGA) was $9.58 Mil.
Total Current Liabilities was $1.81 Mil.
Long-Term Debt was $1.89 Mil.
Net Income was -0.171 + -1.062 + -2.726 + 0.127 = $-3.83 Mil.
Non Operating Income was -0.003 + 0.01 + 0.011 + 0.006 = $0.02 Mil.
Cash Flow from Operations was 1.338 + -0.855 + 1.348 + 1.178 = $3.01 Mil.
Accounts Receivable was $4.19 Mil.
Revenue was 6.475 + 6.447 + 7.903 + 7.864 = $28.69 Mil.
Gross Profit was 2.497 + 2.491 + 3.381 + 3.059 = $11.43 Mil.
Total Current Assets was $19.48 Mil.
Total Assets was $23.49 Mil.
Property, Plant and Equipment(Net PPE) was $1.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.29 Mil.
Selling, General & Admin. Expense(SGA) was $9.45 Mil.
Total Current Liabilities was $2.32 Mil.
Long-Term Debt was $2.60 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)
=(2.402 / 22.319) / (4.186 / 28.689)
=0.10762131 / 0.14590958
=0.7376

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)
=(1.5 / 28.689) / (2.237 / 22.319)
=0.39834083 / 0.36256105
=1.0987

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 - (16.732 + 0.724) / 18.364) / (1 - (19.483 + 1.115) / 23.491)
=0.04944457 / 0.12315355
=0.4015

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
=22.319 / 28.689
=0.778

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))
=(0.287 / (0.287 + 1.115)) / (0.631 / (0.631 + 0.724))
=0.20470756 / 0.46568266
=0.4396

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)
=(9.581 / 22.319) / (9.446 / 28.689)
=0.42927551 / 0.32925512
=1.3038

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)
=((1.885 + 1.808) / 18.364) / ((2.6 + 2.316) / 23.491)
=0.20109998 / 0.20927164
=0.961

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
=(-3.832 - 0.024 - 3.009) / 18.364
=-0.3738

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.

Orbit International Corp has a M-score of -4.96 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.

Orbit International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.89951.11010.9741.22281.27540.62851.00941.08421.14640.6577
GMI 1.01190.96371.03190.99821.02671.04411.1420.83121.07591.0531
AQI 0.96272.47220.8471.26990.64040.73670.84220.92780.80880.4084
SGI 1.05091.34651.03141.03481.05710.96911.00871.16050.94840.8437
DEPI 1.21050.44870.99011.30810.81431.49811.53271.15511.01270.6449
SGAI 0.94840.98371.00751.01821.1251.01871.12350.73861.15731.0349
LVGI 0.7592.58540.87641.17311.04630.931910.75031.05480.7896
TATA 0.0828-0.0146-0.07560.0166-0.1548-0.1327-0.14180.04710.027-0.3333
M-score -2.04-2.14-2.84-2.08-3.09-3.48-3.08-2.01-2.35-4.68

Orbit International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.74390.73060.9671.14641.12821.08571.20640.65771.02040.7376
GMI 0.90240.93640.99261.07591.05481.03471.0061.05311.10891.0987
AQI 0.9230.90240.9280.80880.85271.0270.90420.40840.45060.4015
SGI 1.08431.00940.99120.94840.9780.96870.9090.84370.78720.778
DEPI 1.01811.05091.03871.01270.97950.94490.94820.64490.43770.4396
SGAI 0.91151.00340.95831.15730.86860.84310.92761.03491.25531.3038
LVGI 0.76660.86340.99711.05480.8760.77540.72730.78960.96070.961
TATA -0.0606-0.07950.03510.03090.0056-0.0433-0.0934-0.3333-0.2847-0.3738
M-score -2.91-3.11-2.37-2.33-2.33-2.51-2.75-4.68-4.24-4.96
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