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EchoStar Corp (NAS:SATS)
Beneish M-Score
-2.76 (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.

EchoStar Corp has a M-score of -2.76 suggests that the company is not a manipulator.

SATS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.87   Max: 0.15
Current: -2.76

-3.87
0.15

During the past 10 years, the highest Beneish M-Score of EchoStar Corp was 0.15. The lowest was -3.87. And the median was -2.87.


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 EchoStar Corp 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 * 1.2304+0.528 * 0.9833+0.404 * 0.7741+0.892 * 0.9718+0.115 * 1.1523
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0584+4.679 * -0.0628-0.327 * 1.2387
=-2.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $508 Mil.
Revenue was 742.349 + 757.629 + 816.359 + 790.587 = $3,107 Mil.
Gross Profit was 327.742 + 327.266 + 332.334 + 338.393 = $1,326 Mil.
Total Current Assets was $3,717 Mil.
Total Assets was $8,977 Mil.
Property, Plant and Equipment(Net PPE) was $3,628 Mil.
Depreciation, Depletion and Amortization(DDA) was $500 Mil.
Selling, General & Admin. Expense(SGA) was $395 Mil.
Total Current Liabilities was $548 Mil.
Long-Term Debt was $3,630 Mil.
Net Income was 36.801 + 55.786 + 49.155 + 63.374 = $205 Mil.
Non Operating Income was 6.039 + 10.336 + 8.885 + 0.286 = $26 Mil.
Cash Flow from Operations was 219.075 + 162.785 + 192.849 + 168.528 = $743 Mil.
Accounts Receivable was $425 Mil.
Revenue was 760.879 + 793.595 + 798.653 + 843.887 = $3,197 Mil.
Gross Profit was 333.204 + 337.207 + 330.19 + 340.836 = $1,341 Mil.
Total Current Assets was $2,258 Mil.
Total Assets was $7,289 Mil.
Property, Plant and Equipment(Net PPE) was $3,320 Mil.
Depreciation, Depletion and Amortization(DDA) was $539 Mil.
Selling, General & Admin. Expense(SGA) was $384 Mil.
Total Current Liabilities was $543 Mil.
Long-Term Debt was $2,196 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)
=(508.201 / 3106.924) / (425.006 / 3197.014)
=0.16357046 / 0.13293842
=1.2304

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)
=(1341.437 / 3197.014) / (1325.735 / 3106.924)
=0.41959059 / 0.42670339
=0.9833

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 - (3717.489 + 3628.379) / 8977.337) / (1 - (2257.653 + 3320.222) / 7289.143)
=0.18173195 / 0.23476944
=0.7741

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
=3106.924 / 3197.014
=0.9718

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))
=(539.056 / (539.056 + 3320.222)) / (500.483 / (500.483 + 3628.379))
=0.13967794 / 0.12121572
=1.1523

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)
=(394.601 / 3106.924) / (383.624 / 3197.014)
=0.12700697 / 0.11999447
=1.0584

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)
=((3629.973 + 548.235) / 8977.337) / ((2195.985 + 542.865) / 7289.143)
=0.46541731 / 0.37574376
=1.2387

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
=(205.116 - 25.546 - 743.237) / 8977.337
=-0.0628

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.

EchoStar Corp has a M-score of -2.76 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 local exchange's currency.

EchoStar Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 6.8711.58180.49771.34010.98530.99190.76831.2056
GMI 0.29570.88880.95380.77170.93521.00920.85680.8979
AQI 0.49081.47871.08111.00310.98630.99930.88880.9665
SGI 1.39280.88521.23471.17491.13051.05151.04970.9124
DEPI 0.23771.10551.07721.12880.91220.89711.11921.1073
SGAI 1.26060.99990.82911.79811.08690.92380.98541.1085
LVGI 5.45820.9550.85792.49010.97850.9530.90250.9496
TATA -0.2086-0.0744-0.0901-0.0703-0.0804-0.0729-0.0965-0.0833
M-score 0.13-2.23-3.06-3.07-2.81-2.76-3.17-2.82

EchoStar Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.92750.92850.76830.77620.87950.93111.20561.2721.23541.2304
GMI 0.94160.88970.85680.84560.85850.87190.89790.93280.95240.9833
AQI 0.94110.91140.88880.94090.98450.97560.96650.9750.9250.7741
SGI 1.05871.04581.04971.03170.99080.93760.91240.92490.9380.9718
DEPI 1.08551.09561.11920.99821.04021.07391.10731.13521.13891.1523
SGAI 0.91890.98220.98541.04911.09271.12291.10851.06641.0661.0584
LVGI 0.89870.91350.90250.95470.93820.93160.94960.93650.95911.2387
TATA -0.0807-0.0854-0.0965-0.0958-0.0936-0.0859-0.0833-0.0768-0.0769-0.0628
M-score -2.87-2.96-3.17-3.21-3.11-3.07-2.82-2.68-2.72-2.76
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