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Proto Labs Inc (NYSE:PRLB)
Beneish M-Score
-2.31 (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 -2.31 suggests that the company is not a manipulator.

PRLB' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: -2.31
Current: -2.31

-10000000
-2.31

During the past 7 years, the highest Beneish M-Score of Proto Labs Inc was -2.31. 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 * 1.1833+0.528 * 1.0479+0.404 * 0.886+0.892 * 1.2601+0.115 * 1.0711
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0666+4.679 * -0.0353-0.327 * 1.1124
=-2.31

* 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 $36.1 Mil.
Revenue was 73.759 + 67.842 + 63.969 + 58.536 = $264.1 Mil.
Gross Profit was 41.274 + 40.325 + 37.55 + 35.254 = $154.4 Mil.
Total Current Assets was $138.0 Mil.
Total Assets was $361.0 Mil.
Property, Plant and Equipment(Net PPE) was $125.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.1 Mil.
Selling, General & Admin. Expense(SGA) was $68.9 Mil.
Total Current Liabilities was $26.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 11.993 + 12.382 + 11.686 + 10.453 = $46.5 Mil.
Non Operating Income was 0.612 + 0.593 + -0.036 + -0.457 = $0.7 Mil.
Cash Flow from Operations was 17.273 + 13.451 + 12.416 + 15.417 = $58.6 Mil.
Accounts Receivable was $24.2 Mil.
Revenue was 56.069 + 54.574 + 52.866 + 46.074 = $209.6 Mil.
Gross Profit was 33.612 + 33.082 + 32.683 + 29.024 = $128.4 Mil.
Total Current Assets was $107.9 Mil.
Total Assets was $287.0 Mil.
Property, Plant and Equipment(Net PPE) was $91.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.1 Mil.
Selling, General & Admin. Expense(SGA) was $51.3 Mil.
Total Current Liabilities was $18.8 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)
=(36.125 / 264.106) / (24.226 / 209.583)
=0.1367822 / 0.11559144
=1.1833

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)
=(40.325 / 209.583) / (41.274 / 264.106)
=0.61264988 / 0.58462511
=1.0479

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 - (138.002 + 125.475) / 361.036) / (1 - (107.861 + 91.626) / 287.031)
=0.27021959 / 0.30499841
=0.886

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
=264.106 / 209.583
=1.2601

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))
=(11.138 / (11.138 + 91.626)) / (14.126 / (14.126 + 125.475))
=0.10838426 / 0.10118839
=1.0711

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)
=(68.904 / 264.106) / (51.266 / 209.583)
=0.26089525 / 0.24460953
=1.0666

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 + 26.262) / 361.036) / ((0.01 + 18.759) / 287.031)
=0.07274067 / 0.06539015
=1.1124

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
=(46.514 - 0.712 - 58.557) / 361.036
=-0.0353

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 -2.31 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+141.29491.09220.886
SGI 1.27341.29461.28491.2601
DEPI 0.93590.99511.09681.0711
SGAI 0.91460.92871.03531.0666
LVGI 0.40680.8721.08891.1124
TATA -0.0097-0.0584-0.0543-0.0353
M-score -392,391,651,279,507.00-2.43-2.43-2.31

Proto Labs Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.89610.97281.11181.09221.02921.00290.92911.03591.18331.0169
GMI 0.96920.980.99591.00521.01771.03111.04151.04051.04791.062
AQI 1.29491.1181.25031.21781.09221.00340.79630.79020.8860.9178
SGI 1.29461.2891.29241.29391.28491.29191.26031.24731.26011.2526
DEPI 0.99511.12691.41241.21671.09680.94580.77090.88051.07111.1652
SGAI 0.92870.95320.98031.00181.03531.05841.05711.07391.06661.0549
LVGI 0.8720.911.43751.0581.08891.07720.8320.99571.11240.8612
TATA -0.0584-0.0644-0.0595-0.0455-0.0543-0.0488-0.0494-0.0406-0.0353-0.0404
M-score -2.43-2.46-2.39-2.25-2.43-2.47-2.59-2.50-2.31-2.37
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