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SanDisk Corp (NAS:SNDK)
Beneish M-Score
-3.14 (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.

SanDisk Corp has a M-score of -3.14 suggests that the company is not a manipulator.

SNDK' s Beneish M-Score Range Over the Past 10 Years
Min: -10.19   Max: 25.25
Current: -3.14

-10.19
25.25

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 -2.24.


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 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 * 0.9718+0.528 * 1.1016+0.404 * 0.5173+0.892 * 0.8682+0.115 * 1.0057
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0665+4.679 * -0.0698-0.327 * 1.1124
=-3.14

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $497 Mil.
Revenue was 1365.736 + 1543.15 + 1452.285 + 1237.196 = $5,598 Mil.
Gross Profit was 543.325 + 624.858 + 602.83 + 484.379 = $2,255 Mil.
Total Current Assets was $6,153 Mil.
Total Assets was $9,512 Mil.
Property, Plant and Equipment(Net PPE) was $790 Mil.
Depreciation, Depletion and Amortization(DDA) was $608 Mil.
Selling, General & Admin. Expense(SGA) was $576 Mil.
Total Current Liabilities was $3,693 Mil.
Long-Term Debt was $0 Mil.
Net Income was 78.353 + 135.469 + 133.011 + 80.973 = $428 Mil.
Non Operating Income was 0 + 0.447 + -1.759 + 0 = $-1 Mil.
Cash Flow from Operations was 355.143 + 433.979 + 274.972 + 28.864 = $1,093 Mil.
Accounts Receivable was $589 Mil.
Revenue was 1332.241 + 1735.254 + 1746.491 + 1634.011 = $6,448 Mil.
Gross Profit was 545.002 + 739.77 + 817.138 + 759.65 = $2,862 Mil.
Total Current Assets was $3,753 Mil.
Total Assets was $9,461 Mil.
Property, Plant and Equipment(Net PPE) was $770 Mil.
Depreciation, Depletion and Amortization(DDA) was $598 Mil.
Selling, General & Admin. Expense(SGA) was $622 Mil.
Total Current Liabilities was $2,091 Mil.
Long-Term Debt was $1,211 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)
=(497.183 / 5598.367) / (589.246 / 6447.997)
=0.08880858 / 0.09138435
=0.9718

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)
=(624.858 / 6447.997) / (543.325 / 5598.367)
=0.44379053 / 0.40286605
=1.1016

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 - (6153.38 + 790.402) / 9511.856) / (1 - (3752.986 + 769.933) / 9461.221)
=0.26998664 / 0.52195187
=0.5173

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
=5598.367 / 6447.997
=0.8682

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))
=(598.27 / (598.27 + 769.933)) / (607.987 / (607.987 + 790.402))
=0.43726698 / 0.43477673
=1.0057

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)
=(576.354 / 5598.367) / (622.416 / 6447.997)
=0.10295038 / 0.09652858
=1.0665

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 + 3692.609) / 9511.856) / ((1211.097 + 2090.676) / 9461.221)
=0.3882112 / 0.34897959
=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
=(427.806 - -1.312 - 1092.958) / 9511.856
=-0.0698

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 -3.14 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.

SanDisk Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.31620.63270.30661.80391.15941.20941.34460.89321.14860.8739
GMI 1.10861.232716.39780.05230.76851.08791.29310.71681.0041.1413
AQI 3.23461.40480.97970.9761.0991.05460.9111.00811.05480.5724
SGI 1.41261.19610.86011.06431.35331.17310.89231.22121.07420.8396
DEPI 0.79470.79330.95810.90650.94421.03191.15580.92980.93331.0282
SGAI 1.27721.09581.30120.66990.7320.80921.17481.02481.18831.1739
LVGI 1.66330.9711.26420.80511.01150.87140.97441.18661.07121.0691
TATA -0.0582-0.0587-0.3601-0.0118-0.0209-0.0087-0.0101-0.0786-0.0677-0.0714
M-score -1.42-2.663.05-2.14-2.16-2.03-2.19-2.97-2.63-3.22

SanDisk Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.89321.11071.03531.14851.14860.97120.90560.97840.87390.9718
GMI 0.71680.7120.79880.90781.0041.0971.14131.16771.14131.1016
AQI 1.00811.09541.05361.09391.05481.0161.00590.96480.57240.5173
SGI 1.22121.22241.1541.10641.07421.01680.93110.86960.83960.8682
DEPI 0.92860.92780.91140.91160.93330.97881.00051.02551.02821.0057
SGAI 1.02481.00961.07291.16261.18831.24911.29521.20011.17391.0665
LVGI 1.18661.11671.46521.41271.07121.21331.21971.13631.06911.1124
TATA -0.0788-0.0597-0.0437-0.0645-0.0679-0.0903-0.0913-0.0716-0.0712-0.0698
M-score -2.97-2.62-2.77-2.73-2.63-2.97-3.10-2.95-3.22-3.14
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