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Proto Labs Inc (NYSE:PRLB)
Beneish M-Score
-2.50 (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.

Proto Labs Inc has a M-score of -2.50 suggests that the company is not a manipulator.

PRLB' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: -1.87
Current: -2.5

-10000000
-1.87

During the past 7 years, the highest Beneish M-Score of Proto Labs Inc was -1.87. The lowest was -10000000.00. And the median was -2.43.


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 Proto Labs 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 * 1.0359+0.528 * 1.0405+0.404 * 0.7902+0.892 * 1.2473+0.115 * 0.8805
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0739+4.679 * -0.0406-0.327 * 0.9957
=-2.50

* 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 (Sep14) TTM:
Accounts Receivable was $32.9 Mil.
Revenue was 67.842 + 63.969 + 58.536 + 56.069 = $246.4 Mil.
Gross Profit was 40.325 + 37.55 + 35.254 + 33.612 = $146.7 Mil.
Total Current Assets was $142.5 Mil.
Total Assets was $341.9 Mil.
Property, Plant and Equipment(Net PPE) was $108.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.9 Mil.
Selling, General & Admin. Expense(SGA) was $63.3 Mil.
Total Current Liabilities was $24.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 12.382 + 11.686 + 10.453 + 10.193 = $44.7 Mil.
Non Operating Income was 0.593 + -0.036 + -0.457 + 0.022 = $0.1 Mil.
Cash Flow from Operations was 13.451 + 12.416 + 15.417 + 17.206 = $58.5 Mil.
Accounts Receivable was $25.5 Mil.
Revenue was 54.574 + 52.866 + 46.074 + 44.042 = $197.6 Mil.
Gross Profit was 33.082 + 32.683 + 29.024 + 27.615 = $122.4 Mil.
Total Current Assets was $97.6 Mil.
Total Assets was $279.4 Mil.
Property, Plant and Equipment(Net PPE) was $88.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.7 Mil.
Selling, General & Admin. Expense(SGA) was $47.3 Mil.
Total Current Liabilities was $20.1 Mil.
Long-Term Debt was $0.0 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)
=(32.897 / 246.416) / (25.46 / 197.556)
=0.13350188 / 0.12887485
=1.0359

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)
=(37.55 / 197.556) / (40.325 / 246.416)
=0.61959141 / 0.5955011
=1.0405

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 - (142.54 + 108.626) / 341.926) / (1 - (97.598 + 87.962) / 279.426)
=0.26543755 / 0.33592436
=0.7902

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
=246.416 / 197.556
=1.2473

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))
=(9.737 / (9.737 + 87.962)) / (13.864 / (13.864 + 108.626))
=0.09966325 / 0.11318475
=0.8805

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)
=(63.333 / 246.416) / (47.282 / 197.556)
=0.25701659 / 0.23933467
=1.0739

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)
=((0 + 24.534) / 341.926) / ((0.042 + 20.095) / 279.426)
=0.07175237 / 0.07206559
=0.9957

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
=(44.714 - 0.122 - 58.49) / 341.926
=-0.0406

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.

Proto Labs Inc has a M-score of -2.50 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.

Proto Labs Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.07520.89611.02921.1833
GMI 0.99710.96921.01771.0479
AQI -9.71266463563E+141.29491.09030.8875
SGI 1.27341.29461.28491.2601
DEPI 0.93590.99511.09681.0711
SGAI 0.91460.92871.03531.0666
LVGI 0.40680.8721.08711.1143
TATA -0.0097-0.0584-0.0542-0.0353
M-score -392,391,651,279,507.00-2.43-2.43-2.31

Proto Labs Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.90990.89610.97281.11181.09221.02921.00290.92911.03591.1833
GMI 0.94830.96920.980.99591.00521.01771.03111.04151.04051.0479
AQI 1.45991.29491.1181.25031.21781.09031.00340.79630.79020.8875
SGI 1.29381.29461.2891.29241.29391.28491.29191.26031.24731.2601
DEPI 0.92770.99511.12691.41241.21671.09680.94580.77090.88051.0711
SGAI 0.88320.92870.95320.98031.00181.03531.05841.05711.07391.0666
LVGI 0.95980.8720.911.43751.0581.08711.07720.8320.99571.1143
TATA -0.0381-0.0584-0.0644-0.0595-0.0455-0.0542-0.0488-0.0494-0.0406-0.0353
M-score -2.30-2.43-2.46-2.39-2.25-2.43-2.47-2.59-2.50-2.31
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