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EchoStar Corp (NAS:SATS)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

SATS' s 10-Year Beneish M-Score Range
Min: -3.29   Max: -2.23
Current: -2.95

-3.29
-2.23

During the past 8 years, the highest Beneish M-Score of EchoStar Corp was -2.23. 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 * 0.9285+0.528 * 0.8897+0.404 * 0.9114+0.892 * 1.0458+0.115 * 1.0956
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9728+4.679 * -0.0854-0.327 * 0.9135
=-2.95

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $487 Mil.
Revenue was 895.84 + 879.828 + 826.023 + 808.087 = $3,410 Mil.
Gross Profit was 343.383 + 338.183 + 295.26 + 270.638 = $1,247 Mil.
Total Current Assets was $2,472 Mil.
Total Assets was $7,313 Mil.
Property, Plant and Equipment(Net PPE) was $3,081 Mil.
Depreciation, Depletion and Amortization(DDA) was $544 Mil.
Selling, General & Admin. Expense(SGA) was $361 Mil.
Total Current Liabilities was $617 Mil.
Long-Term Debt was $2,333 Mil.
Net Income was 60.168 + 30.805 + 12.055 + 4.506 = $108 Mil.
Non Operating Income was 11.686 + -1.405 + -1.187 + 1.324 = $10 Mil.
Cash Flow from Operations was 290.46 + 170.502 + 201.472 + 59.163 = $722 Mil.
Accounts Receivable was $501 Mil.
Revenue was 848.908 + 830.003 + 795.454 + 786.199 = $3,261 Mil.
Gross Profit was 266.975 + 275.636 + 262.305 + 256.396 = $1,061 Mil.
Total Current Assets was $2,375 Mil.
Total Assets was $6,664 Mil.
Property, Plant and Equipment(Net PPE) was $2,530 Mil.
Depreciation, Depletion and Amortization(DDA) was $497 Mil.
Selling, General & Admin. Expense(SGA) was $355 Mil.
Total Current Liabilities was $578 Mil.
Long-Term Debt was $2,364 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)
=(486.859 / 3409.778) / (501.419 / 3260.564)
=0.1427832 / 0.1537829
=0.9285

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)
=(338.183 / 3260.564) / (343.383 / 3409.778)
=0.32549951 / 0.36584904
=0.8897

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 - (2471.965 + 3080.911) / 7312.681) / (1 - (2375.105 + 2529.575) / 6664.459)
=0.24065114 / 0.26405429
=0.9114

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
=3409.778 / 3260.564
=1.0458

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))
=(497.439 / (497.439 + 2529.575)) / (543.693 / (543.693 + 3080.911))
=0.16433323 / 0.15000066
=1.0956

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)
=(360.889 / 3409.778) / (354.742 / 3260.564)
=0.10583944 / 0.10879774
=0.9728

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)
=((2332.73 + 616.72) / 7312.681) / ((2364.121 + 578.462) / 6664.459)
=0.40333361 / 0.44153366
=0.9135

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
=(107.534 - 10.418 - 721.597) / 7312.681
=-0.0854

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 -2.95 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.66560.71610.98530.9351.02960.99120.99191.00270.92750.9285
GMI 0.79250.86560.93520.98871.01121.02481.00920.98110.94160.8897
AQI 0.6990.8940.98631.00780.95150.96670.99930.92620.94110.9114
SGI 1.49621.29881.13051.03480.97191.02871.05151.0511.05871.0458
DEPI 0.60550.77310.91220.97561.00040.93910.89711.05321.08551.0956
SGAI 1.63931.25521.08691.00440.93880.89080.91490.91030.90990.9728
LVGI 0.99610.96610.97690.95060.9640.9730.9530.9240.89870.9135
TATA -0.0816-0.0852-0.0804-0.0784-0.0904-0.092-0.0729-0.0841-0.0807-0.0854
M-score -3.11-3.05-2.81-2.87-2.89-2.87-2.76-2.82-2.87-2.95
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