Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Orbit International Corp (OTCPK:ORBT)
Beneish M-Score
0.00 (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 -1.24 signals that the company is a manipulator.

During the past 13 years, the highest Beneish M-Score of Orbit International Corp was 0.00. The lowest was 0.00. And the median was 0.00.


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 * 1.634+0.528 * 0.9059+0.404 * 0.9814+0.892 * 1.0874+0.115 * 0.98
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7132+4.679 * 0.1211-0.327 * 0.9285
=-1.24

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

This Year (Jun16) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $3.36 Mil.
Revenue was 4.919 + 5.518 + 5.217 + 5.181 = $20.84 Mil.
Gross Profit was 1.653 + 2.298 + 1.955 + 2.03 = $7.94 Mil.
Total Current Assets was $16.26 Mil.
Total Assets was $17.50 Mil.
Property, Plant and Equipment(Net PPE) was $0.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.23 Mil.
Selling, General & Admin. Expense(SGA) was $6.65 Mil.
Total Current Liabilities was $1.96 Mil.
Long-Term Debt was $1.18 Mil.
Net Income was 0.074 + 0.583 + 0.314 + 0.331 = $1.30 Mil.
Non Operating Income was 0.004 + 0.011 + 0.005 + 0.004 = $0.02 Mil.
Cash Flow from Operations was -1.357 + 1.607 + -0.278 + -0.813 = $-0.84 Mil.
Accounts Receivable was $1.89 Mil.
Revenue was 3.957 + 4.8 + 5.396 + 5.007 = $19.16 Mil.
Gross Profit was 1.111 + 1.763 + 2.237 + 1.5 = $6.61 Mil.
Total Current Assets was $15.63 Mil.
Total Assets was $17.17 Mil.
Property, Plant and Equipment(Net PPE) was $0.64 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.44 Mil.
Selling, General & Admin. Expense(SGA) was $8.58 Mil.
Total Current Liabilities was $3.32 Mil.
Long-Term Debt was $0.00 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)
=(3.36 / 20.835) / (1.891 / 19.16)
=0.1612671 / 0.0986952
=1.634

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)
=(6.611 / 19.16) / (7.936 / 20.835)
=0.34504175 / 0.38089753
=0.9059

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 - (16.264 + 0.328) / 17.5) / (1 - (15.625 + 0.641) / 17.174)
=0.05188571 / 0.05287062
=0.9814

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
=20.835 / 19.16
=1.0874

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))
=(0.44 / (0.44 + 0.641)) / (0.233 / (0.233 + 0.328))
=0.40703053 / 0.41532977
=0.98

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)
=(6.65 / 20.835) / (8.575 / 19.16)
=0.31917447 / 0.44754697
=0.7132

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)
=((1.18 + 1.961) / 17.5) / ((0 + 3.32) / 17.174)
=0.17948571 / 0.19331548
=0.9285

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
=(1.302 - 0.024 - -0.841) / 17.5
=0.1211

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 -1.24 signals that the company is likely to 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.

Orbit International Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9741.22281.27540.62851.00941.08421.14640.65770.82231.6429
GMI 1.03190.99821.02671.04411.1420.83121.07591.05311.09020.906
AQI 0.8471.26990.64040.73670.84220.92780.80880.40841.15520.98
SGI 1.03141.03481.05710.96911.00871.16050.94840.84370.77141.0506
DEPI 0.99011.30810.81431.49811.53271.15511.01270.64490.7911.0153
SGAI 1.00751.01821.1251.01871.12350.73861.15731.03491.16520.747
LVGI 0.87641.17311.04630.931910.75031.05480.78960.99410.9042
TATA -0.07560.0166-0.1764-0.1482-0.1510.04710.027-0.3333-0.13320.0364
M-score -2.84-2.08-3.19-3.55-3.12-2.01-2.35-4.68-3.41-1.65

Orbit International Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Jun15Sep15Dec15Jun16
DSRI 1.20640.65771.02040.73760.82231.73611.634
GMI 1.0061.05311.10891.09871.09021.01250.9059
AQI 0.90420.40840.45060.40151.15521.07830.9814
SGI 0.9090.84370.78720.7780.77140.85821.0874
DEPI 0.94820.64490.43770.43960.7911.28060.98
SGAI 0.92761.03491.25531.30381.16520.85040.7132
LVGI 0.72730.78960.96070.9610.99410.91010.9285
TATA -0.0934-0.3333-0.2847-0.3738-0.13320.06830.1211
M-score -2.75-4.68-4.24-4.96-3.41-1.48-1.24
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)
FEEDBACK