SNDK has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of SanDisk Corp was 25.25. The lowest was -10.19. And the median was -2.16.
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 SanDisk 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 * 1.1485||+||0.528 * 0.9078||+||0.404 * 1.0939||+||0.892 * 1.1064||+||0.115 * 0.9116|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1626||+||4.679 * -0.0644||-||0.327 * 1.4127|
|This Year (Sep14) TTM:||Last Year (Sep13) TTM:|
|Accounts Receivable was $871 Mil.|
Revenue was 1746.491 + 1634.011 + 1511.945 + 1727.858 = $6,620 Mil.
Gross Profit was 817.138 + 759.65 + 751.29 + 857.155 = $3,185 Mil.
Total Current Assets was $4,354 Mil.
Total Assets was $10,708 Mil.
Property, Plant and Equipment(Net PPE) was $692 Mil.
Depreciation, Depletion and Amortization(DDA) was $545 Mil.
Selling, General & Admin. Expense(SGA) was $567 Mil.
Total Current Liabilities was $2,215 Mil.
Long-Term Debt was $1,188 Mil.
Net Income was 262.661 + 273.946 + 268.948 + 337.78 = $1,143 Mil.
Non Operating Income was 0.825 + -1.179 + 0 + 6.209 = $6 Mil.
Cash Flow from Operations was 587.696 + 240.86 + 382.079 + 616.815 = $1,827 Mil.
|Accounts Receivable was $685 Mil.
Revenue was 1625.153 + 1476.263 + 1340.729 + 1541.503 = $5,984 Mil.
Gross Profit was 801.993 + 676.819 + 531.516 + 603.012 = $2,613 Mil.
Total Current Assets was $3,948 Mil.
Total Assets was $8,945 Mil.
Property, Plant and Equipment(Net PPE) was $673 Mil.
Depreciation, Depletion and Amortization(DDA) was $452 Mil.
Selling, General & Admin. Expense(SGA) was $441 Mil.
Total Current Liabilities was $1,193 Mil.
Long-Term Debt was $820 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(870.552 / 6620.305)||/||(685.103 / 5983.648)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(759.65 / 5983.648)||/||(817.138 / 6620.305)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (4354.134 + 692.362) / 10708.261)||/||(1 - (3947.905 + 673.219) / 8944.531)|
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.
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))|
|=||(451.569 / (451.569 + 673.219))||/||(544.885 / (544.885 + 692.362))|
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)|
|=||(567.065 / 6620.305)||/||(440.85 / 5983.648)|
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)|
|=||((1188.356 + 2214.946) / 10708.261)||/||((819.681 + 1192.646) / 8944.531)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(1143.335 - 5.855||-||1827.45)||/||10708.261|
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.
SanDisk Corp has a M-score of -2.73 suggests that the company will not be a manipulator.
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
SanDisk Corp Annual Data
SanDisk Corp Quarterly Data