OTT has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Otelco, Inc. has a M-score of -8.86 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Otelco, Inc. was -1.80. The lowest was -7.23. And the median was -2.59.
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 Otelco, 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 * 1.0196||+||0.528 * 1.0772||+||0.404 * 1.1827||+||0.892 * 0.8165||+||0.115 * 1.3502|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9583||+||4.679 * -0.1435||-||0.327 * 18.5222|
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $8.00 Mil.|
Revenue was 18.782 + 19.338 + 18.98 + 19.666 = $76.77 Mil.
Gross Profit was 9.385 + 10.104 + 10.068 + 10.738 = $40.30 Mil.
Total Current Assets was $19.05 Mil.
Total Assets was $127.61 Mil.
Property, Plant and Equipment(Net PPE) was $53.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.85 Mil.
Selling, General & Admin. Expense(SGA) was $10.71 Mil.
Total Current Liabilities was $16.80 Mil.
Long-Term Debt was $115.06 Mil.
Net Income was 1.394 + -0.202 + 1.472 + 109.648 = $112.31 Mil.
Non Operating Income was 0.654 + -0.035 + -0.946 + 111.694 = $111.37 Mil.
Cash Flow from Operations was 4.3 + 5.664 + 2.453 + 6.842 = $19.26 Mil.
|Accounts Receivable was $9.61 Mil.
Revenue was 20.988 + 23.888 + 24.428 + 24.714 = $94.02 Mil.
Gross Profit was 11.335 + 13.694 + 14.067 + 14.065 = $53.16 Mil.
Total Current Assets was $50.50 Mil.
Total Assets was $168.46 Mil.
Property, Plant and Equipment(Net PPE) was $56.57 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.32 Mil.
Selling, General & Admin. Expense(SGA) was $13.69 Mil.
Total Current Liabilities was $9.40 Mil.
Long-Term Debt was $0.00 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(8.003 / 76.766)||/||(9.613 / 94.018)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(10.104 / 94.018)||/||(9.385 / 76.766)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (19.047 + 53.562) / 127.605)||/||(1 - (50.501 + 56.572) / 168.46)|
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.
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))|
|=||(18.32 / (18.32 + 56.572))||/||(11.851 / (11.851 + 53.562))|
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)|
|=||(10.709 / 76.766)||/||(13.687 / 94.018)|
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)|
|=||((115.061 + 16.795) / 127.605)||/||((0 + 9.398) / 168.46)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(112.312 - 111.367||-||19.259)||/||127.605|
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.
Otelco, Inc. has a M-score of -8.86 suggests that the company will not be a manipulator.
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
Otelco, Inc. Annual Data
Otelco, Inc. Quarterly Data