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Orbit International Corp (OTCPK:ORBT)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

ORBT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.96   Max: 2.3
Current: -2.59

-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 -2.51.


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 * 1.4604+0.528 * 1.0303+0.404 * 1.165+0.892 * 0.8221+0.115 * 0.7279
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0821+4.679 * -0.0927-0.327 * 0.9412
=-2.59

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

This Year (Sep15) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $3.58 Mil.
Revenue was 5.217 + 4.8 + 5.396 + 5.007 = $20.42 Mil.
Gross Profit was 1.955 + 1.763 + 2.237 + 1.5 = $7.46 Mil.
Total Current Assets was $15.65 Mil.
Total Assets was $17.03 Mil.
Property, Plant and Equipment(Net PPE) was $0.47 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.37 Mil.
Selling, General & Admin. Expense(SGA) was $8.49 Mil.
Total Current Liabilities was $1.62 Mil.
Long-Term Debt was $1.50 Mil.
Net Income was 0.314 + -0.115 + -0.171 + -1.062 = $-1.03 Mil.
Non Operating Income was 0.005 + 0.007 + -0.003 + 0.01 = $0.02 Mil.
Cash Flow from Operations was 0 + 0.042 + 1.338 + -0.855 = $0.53 Mil.
Accounts Receivable was $2.98 Mil.
Revenue was 5.807 + 6.109 + 6.475 + 6.447 = $24.84 Mil.
Gross Profit was 1.989 + 2.366 + 2.497 + 2.491 = $9.34 Mil.
Total Current Assets was $17.85 Mil.
Total Assets was $19.73 Mil.
Property, Plant and Equipment(Net PPE) was $0.98 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.46 Mil.
Selling, General & Admin. Expense(SGA) was $9.54 Mil.
Total Current Liabilities was $3.84 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)
=(3.579 / 20.42) / (2.981 / 24.838)
=0.17526934 / 0.12001771
=1.4604

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)
=(9.343 / 24.838) / (7.455 / 20.42)
=0.3761575 / 0.36508325
=1.0303

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 - (15.653 + 0.469) / 17.03) / (1 - (17.853 + 0.975) / 19.731)
=0.05331767 / 0.04576555
=1.165

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
=20.42 / 24.838
=0.8221

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))
=(0.463 / (0.463 + 0.975)) / (0.372 / (0.372 + 0.469))
=0.32197497 / 0.44233056
=0.7279

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)
=(8.487 / 20.42) / (9.54 / 24.838)
=0.41562194 / 0.3840889
=1.0821

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)
=((1.495 + 1.622) / 17.03) / ((0 + 3.837) / 19.731)
=0.18302995 / 0.19446556
=0.9412

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
=(-1.034 - 0.019 - 0.525) / 17.03
=-0.0927

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 -2.59 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 1.21050.44870.99011.30810.80791.511.53271.15511.01270.6449
SGAI 0.94840.98371.00751.01821.13451.01010.930.89231.15731.0349
LVGI 0.7592.58540.87641.17311.04630.931910.75031.05480.7896
TATA 0.0828-0.0146-0.07560.0166-0.1548-0.1327-0.14180.04710.0328-0.3333
M-score -2.04-2.14-2.84-2.08-3.09-3.47-3.04-2.04-2.32-4.68

Orbit International Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Sep15
DSRI 0.9671.14641.12821.08571.20640.65771.02040.73761.4604
GMI 0.99261.07591.05481.03471.0061.05311.10891.09871.0303
AQI 0.9280.80880.85271.0270.90420.40840.45060.40151.165
SGI 0.99120.94840.9780.96870.9090.84370.78720.7780.8221
DEPI 1.03871.01270.97950.94490.94820.64490.43770.43960.7279
SGAI 0.95831.15730.86860.84310.92761.03491.25531.30381.0821
LVGI 0.99711.05480.8760.77540.72730.78960.96070.9610.9412
TATA 0.03510.03090.0056-0.0433-0.0934-0.3333-0.2847-0.3738-0.0927
M-score -2.37-2.33-2.33-2.51-2.75-4.68-4.24-4.96-2.59
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