Switch to:
Penn National Gaming Inc (NAS:PENN)
Beneish M-Score
-3.81 (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 -3.81 suggests that the company is not a manipulator.

PENN' s 10-Year Beneish M-Score Range
Min: -8.41   Max: -0.5
Current: -3.81

-8.41
-0.5

During the past 13 years, the highest Beneish M-Score of Penn National Gaming Inc was -0.50. The lowest was -8.41. And the median was -2.50.


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 * 0.8137+0.528 * 0.9887+0.404 * 0.8769+0.892 * 0.9464+0.115 * 1.836
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3838+4.679 * -0.2203-0.327 * 1.1679
=-3.81

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $41 Mil.
Revenue was 664.138 + 651.361 + 645.94 + 652.146 = $2,614 Mil.
Gross Profit was 291.314 + 278.121 + 278.545 + 287.636 = $1,136 Mil.
Total Current Assets was $417 Mil.
Total Assets was $2,281 Mil.
Property, Plant and Equipment(Net PPE) was $803 Mil.
Depreciation, Depletion and Amortization(DDA) was $175 Mil.
Selling, General & Admin. Expense(SGA) was $881 Mil.
Total Current Liabilities was $455 Mil.
Long-Term Debt was $1,235 Mil.
Net Income was 10.996 + -250.407 + 8.499 + 4.176 = $-227 Mil.
Non Operating Income was 7.071 + 3.255 + 3.874 + -0.35 = $14 Mil.
Cash Flow from Operations was 65.561 + 15.317 + 82.811 + 98.265 = $262 Mil.
Accounts Receivable was $53 Mil.
Revenue was 641.08 + 644.702 + 714.435 + 761.371 = $2,762 Mil.
Gross Profit was 277.465 + 273.94 + 304.388 + 330.572 = $1,186 Mil.
Total Current Assets was $508 Mil.
Total Assets was $2,253 Mil.
Property, Plant and Equipment(Net PPE) was $550 Mil.
Depreciation, Depletion and Amortization(DDA) was $269 Mil.
Selling, General & Admin. Expense(SGA) was $672 Mil.
Total Current Liabilities was $395 Mil.
Long-Term Debt was $1,035 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)
=(40.918 / 2613.585) / (53.137 / 2761.588)
=0.01565589 / 0.01924147
=0.8137

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)
=(278.121 / 2761.588) / (291.314 / 2613.585)
=0.42959522 / 0.4345051
=0.9887

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 - (417.243 + 802.52) / 2280.678) / (1 - (507.637 + 550.427) / 2253.44)
=0.46517527 / 0.5304672
=0.8769

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
=2613.585 / 2761.588
=0.9464

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))
=(268.621 / (268.621 + 550.427)) / (174.537 / (174.537 + 802.52))
=0.32796735 / 0.17863543
=1.836

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)
=(880.659 / 2613.585) / (672.455 / 2761.588)
=0.33695441 / 0.24350301
=1.3838

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)
=((1235.061 + 454.877) / 2280.678) / ((1034.835 + 394.833) / 2253.44)
=0.74098053 / 0.63443801
=1.1679

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
=(-226.736 - 13.85 - 261.954) / 2280.678
=-0.2203

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 -3.81 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.9470.69351.01160.77661.09540.91791.11840.91620.97150.8925
GMI 1.02480.98471.04681.04551.02150.98280.98860.97760.9730.9929
AQI 1.27790.90270.98480.79480.86731.1020.91271.03491.25440.8966
SGI 1.23241.62951.03630.99440.97781.03791.11511.05731.00670.8875
DEPI 1.55150.76251.03580.99570.91340.98141.14751.03080.21991.9859
SGAI 0.87931.00780.85851.07471.00820.96870.92361.1881.11241.6406
LVGI 1.18550.9570.95710.79261.05540.98730.9381.05971.13651.1746
TATA 0.0087-0.0074-0.0523-0.1492-0.127-0.1193-0.0681-0.0527-0.5435-0.2075
M-score -2.13-2.30-2.62-3.39-3.08-3.04-2.58-2.80-5.11-3.75

Penn National Gaming Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.91620.97180.91630.70080.97151.00171.51351.16380.89250.8137
GMI 0.97760.97020.9610.96640.9730.98310.98990.98860.99290.9887
AQI 1.03491.05071.04371.06511.25441.21451.22861.22310.89660.8769
SGI 1.05731.05351.06151.06561.00670.93240.8810.85620.88750.9464
DEPI 1.03080.91750.82480.78480.21990.27570.33210.50611.98591.836
SGAI 1.21361.22591.19451.10521.11941.31491.51841.76871.64061.3838
LVGI 1.05971.05181.02720.99671.13651.17821.20391.29271.17461.1679
TATA -0.0527-0.0582-0.0839-0.0915-0.5435-0.5055-0.4689-0.4214-0.2075-0.2203
M-score -2.80-2.79-2.96-3.16-5.11-5.02-4.45-4.63-3.75-3.81
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