Switch to:
Penn National Gaming Inc (NAS:PENN)
Beneish M-Score
-2.74 (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.

Penn National Gaming Inc has a M-score of -2.74 suggests that the company is not a manipulator.

PENN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.92   Max: -0.5
Current: -2.74

-3.92
-0.5

During the past 13 years, the highest Beneish M-Score of Penn National Gaming Inc was -0.50. The lowest was -3.92. And the median was -2.49.


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 Penn National Gaming 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 * 0.9909+0.528 * 1.0126+0.404 * 0.9907+0.892 * 1.0957+0.115 * 1.1342
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9188+4.679 * -0.0815-0.327 * 0.9737
=-2.74

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $45 Mil.
Revenue was 733.967 + 739.297 + 700.956 + 664.138 = $2,838 Mil.
Gross Profit was 305.004 + 315.927 + 304.537 + 291.314 = $1,217 Mil.
Total Current Assets was $372 Mil.
Total Assets was $5,139 Mil.
Property, Plant and Equipment(Net PPE) was $2,980 Mil.
Depreciation, Depletion and Amortization(DDA) was $259 Mil.
Selling, General & Admin. Expense(SGA) was $449 Mil.
Total Current Liabilities was $558 Mil.
Long-Term Debt was $5,133 Mil.
Net Income was -9.066 + 4.9 + 2.983 + 1.869 = $1 Mil.
Non Operating Income was 3.66 + 6.431 + 3.198 + 7.071 = $20 Mil.
Cash Flow from Operations was 92.837 + 106.453 + 121.656 + 78.036 = $399 Mil.
Accounts Receivable was $42 Mil.
Revenue was 651.361 + 645.94 + 652.146 + 641.08 = $2,591 Mil.
Gross Profit was 278.121 + 278.545 + 287.636 + 280.274 = $1,125 Mil.
Total Current Assets was $332 Mil.
Total Assets was $4,625 Mil.
Property, Plant and Equipment(Net PPE) was $2,670 Mil.
Depreciation, Depletion and Amortization(DDA) was $267 Mil.
Selling, General & Admin. Expense(SGA) was $446 Mil.
Total Current Liabilities was $485 Mil.
Long-Term Debt was $4,775 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)
=(45.186 / 2838.358) / (41.618 / 2590.527)
=0.01591977 / 0.01606546
=0.9909

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)
=(315.927 / 2590.527) / (305.004 / 2838.358)
=0.4341109 / 0.42869222
=1.0126

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 - (372.476 + 2980.068) / 5138.752) / (1 - (332.265 + 2669.732) / 4624.551)
=0.34759568 / 0.35085655
=0.9907

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
=2838.358 / 2590.527
=1.0957

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))
=(266.742 / (266.742 + 2669.732)) / (259.461 / (259.461 + 2980.068))
=0.09083751 / 0.0800922
=1.1342

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)
=(449.433 / 2838.358) / (446.436 / 2590.527)
=0.15834261 / 0.17233405
=0.9188

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)
=((5132.931 + 557.774) / 5138.752) / ((4775.206 + 484.587) / 4624.551)
=1.10740993 / 1.13736296
=0.9737

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
=(0.686 - 20.36 - 398.982) / 5138.752
=-0.0815

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.

Penn National Gaming Inc has a M-score of -2.74 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.

Penn National Gaming Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.67881.01160.77661.09540.91791.11840.91620.97150.89250.9909
GMI 0.88811.04681.03291.03410.98280.98860.97760.9730.99291.0101
AQI 0.90270.98480.79480.86731.1020.91271.03490.77121.05830.9907
SGI 1.66481.03630.99440.97781.03791.11511.05731.00670.88751.0957
DEPI 0.76251.03580.93820.96930.98141.14751.03080.77791.68660.7845
SGAI 1.36650.85851.10590.97970.98640.87861.20971.12771.64060.4727
LVGI 0.9570.95710.79261.05540.98730.9381.05970.57213.56370.9737
TATA 0.0134-0.0523-0.1492-0.127-0.1193-0.0681-0.0527-0.2657-0.1004-0.0815
M-score -2.29-2.62-3.41-3.06-3.04-2.57-2.80-3.76-4.00-2.71

Penn National Gaming Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.94660.98051.48661.1450.84940.77210.61240.85770.9909
GMI 0.97640.98470.99190.99050.99020.99090.99841.00451.0126
AQI 0.77121.21451.22861.22311.05830.65120.65420.63410.9907
SGI 1.03310.95260.8970.87030.93260.99731.06011.1281.0957
DEPI 0.74650.25360.2850.38771.22564.06544.06793.49641.1342
SGAI 0.99610.98330.96810.9780.92750.93490.94160.89670.9188
LVGI 0.57211.17821.20391.29273.56370.5820.58850.62350.9737
TATA -0.2218-0.4292-0.4039-0.3757-0.0988-0.1044-0.1045-0.0956-0.0815
M-score -3.53-4.61-4.07-4.30-3.92-2.83-2.92-2.66-2.74
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)

GuruFocus Premium Plus Membership

FEEDBACK