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EchoStar Corp (NAS:SATS)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

SATS' s 10-Year Beneish M-Score Range
Min: -3.29   Max: -2.24
Current: -2.87

-3.29
-2.24

During the past 8 years, the highest Beneish M-Score of EchoStar Corp was -2.24. The lowest was -3.29. 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 * 0.9275+0.528 * 0.9416+0.404 * 0.9411+0.892 * 1.0587+0.115 * 1.0855
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9099+4.679 * -0.0807-0.327 * 0.8987
=-2.87

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $492 Mil.
Revenue was 879.828 + 826.023 + 808.087 + 848.908 = $3,363 Mil.
Gross Profit was 338.183 + 295.26 + 270.638 + 266.975 = $1,171 Mil.
Total Current Assets was $2,383 Mil.
Total Assets was $7,172 Mil.
Property, Plant and Equipment(Net PPE) was $3,028 Mil.
Depreciation, Depletion and Amortization(DDA) was $526 Mil.
Selling, General & Admin. Expense(SGA) was $352 Mil.
Total Current Liabilities was $523 Mil.
Long-Term Debt was $2,339 Mil.
Net Income was 30.805 + 12.055 + 4.506 + 4.32 = $52 Mil.
Non Operating Income was -1.405 + -1.187 + 1.324 + 2.775 = $2 Mil.
Cash Flow from Operations was 170.502 + 201.472 + 59.163 + 198.069 = $629 Mil.
Accounts Receivable was $501 Mil.
Revenue was 830.003 + 795.454 + 786.199 + 764.721 = $3,176 Mil.
Gross Profit was 275.636 + 262.305 + 256.396 + 247.145 = $1,041 Mil.
Total Current Assets was $2,283 Mil.
Total Assets was $6,506 Mil.
Property, Plant and Equipment(Net PPE) was $2,525 Mil.
Depreciation, Depletion and Amortization(DDA) was $483 Mil.
Selling, General & Admin. Expense(SGA) was $365 Mil.
Total Current Liabilities was $509 Mil.
Long-Term Debt was $2,380 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)
=(492.164 / 3362.846) / (501.233 / 3176.377)
=0.14635342 / 0.15780022
=0.9275

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)
=(295.26 / 3176.377) / (338.183 / 3362.846)
=0.32788362 / 0.34823361
=0.9416

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 - (2383.046 + 3027.697) / 7172.138) / (1 - (2283.335 + 2525.031) / 6506.327)
=0.24558855 / 0.26097074
=0.9411

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
=3362.846 / 3176.377
=1.0587

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))
=(483.475 / (483.475 + 2525.031)) / (526.141 / (526.141 + 3027.697))
=0.16070269 / 0.14804867
=1.0855

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)
=(352.061 / 3362.846) / (365.482 / 3176.377)
=0.10469138 / 0.11506254
=0.9099

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)
=((2339.338 + 523.175) / 7172.138) / ((2380.172 + 509.349) / 6506.327)
=0.39911572 / 0.4441094
=0.8987

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
=(51.686 - 1.507 - 629.206) / 7172.138
=-0.0807

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 -2.87 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.

EchoStar Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.49771.34010.98530.9919
GMI 0.95380.77170.93521.0092
AQI 1.08111.00310.98630.9993
SGI 1.23471.17491.13051.0515
DEPI 1.07721.12880.91220.8971
SGAI 0.82911.79811.08690.9149
LVGI 0.85792.49410.97690.953
TATA -0.0901-0.0703-0.0804-0.0729
M-score -3.06-3.07-2.81-2.76

EchoStar Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.29380.66560.71610.98530.9351.02960.99120.99191.00270.9275
GMI 0.7530.79250.86560.93520.98871.01121.02481.00920.98110.9416
AQI 0.97280.6990.8940.98631.00780.95150.96670.99930.92620.9411
SGI 1.38281.49621.29881.13051.03480.97191.02871.05151.0511.0587
DEPI 1.01130.60550.77310.91220.97561.00040.93910.89711.05321.0855
SGAI 1.65121.63931.25521.08691.00440.93880.89080.91490.91030.9099
LVGI 2.4390.99610.96610.97690.95060.9640.9730.9530.9240.8987
TATA -0.0685-0.0816-0.0852-0.0804-0.0784-0.0904-0.092-0.0729-0.0841-0.0807
M-score -2.91-3.11-3.05-2.81-2.87-2.89-2.87-2.76-2.82-2.87
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