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Taser International Inc (NAS:TASR)
Beneish M-Score
-2.44 (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.

Taser International Inc has a M-score of -2.44 suggests that the company is not a manipulator.

TASR' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 5.77
Current: -2.44

-3.83
5.77

During the past 13 years, the highest Beneish M-Score of Taser International Inc was 5.77. The lowest was -3.83. And the median was -2.52.


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 Taser International Inc 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 * 1.0156+0.528 * 0.9507+0.404 * 1.5426+0.892 * 1.2011+0.115 * 1.0898
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9868+4.679 * -0.075-0.327 * 1.0281
=-2.44

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $20.5 Mil.
Revenue was 36.185 + 40.025 + 35.197 + 32.176 = $143.6 Mil.
Gross Profit was 22.208 + 25.554 + 22.096 + 19.742 = $89.6 Mil.
Total Current Assets was $113.1 Mil.
Total Assets was $164.8 Mil.
Property, Plant and Equipment(Net PPE) was $18.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.9 Mil.
Selling, General & Admin. Expense(SGA) was $49.1 Mil.
Total Current Liabilities was $24.4 Mil.
Long-Term Debt was $0.1 Mil.
Net Income was 3.391 + 6.922 + 5.114 + 4.458 = $19.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0.019 = $0.0 Mil.
Cash Flow from Operations was 4.31 + 9.339 + 10.863 + 7.704 = $32.2 Mil.
Accounts Receivable was $16.8 Mil.
Revenue was 30.434 + 32.116 + 28.773 + 28.222 = $119.5 Mil.
Gross Profit was 18.451 + 19.168 + 16.803 + 16.502 = $70.9 Mil.
Total Current Assets was $80.5 Mil.
Total Assets was $117.1 Mil.
Property, Plant and Equipment(Net PPE) was $21.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.3 Mil.
Selling, General & Admin. Expense(SGA) was $41.4 Mil.
Total Current Liabilities was $16.8 Mil.
Long-Term Debt was $0.1 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)
=(20.501 / 143.583) / (16.807 / 119.545)
=0.14278153 / 0.14059141
=1.0156

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)
=(25.554 / 119.545) / (22.208 / 143.583)
=0.59328286 / 0.62402931
=0.9507

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 - (113.085 + 18.398) / 164.762) / (1 - (80.537 + 21.203) / 117.068)
=0.20198225 / 0.13093245
=1.5426

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
=143.583 / 119.545
=1.2011

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))
=(6.272 / (6.272 + 21.203)) / (4.875 / (4.875 + 18.398))
=0.22828025 / 0.2094702
=1.0898

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)
=(49.12 / 143.583) / (41.443 / 119.545)
=0.34210178 / 0.3466728
=0.9868

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)
=((0.058 + 24.414) / 164.762) / ((0.094 + 16.819) / 117.068)
=0.14852939 / 0.14447159
=1.0281

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
=(19.885 - 0.019 - 32.216) / 164.762
=-0.075

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.

Taser International Inc has a M-score of -2.44 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.

Taser International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.5660.90891.30780.78071.55830.81591.05570.83991.20551.0343
GMI 0.92141.07640.97331.11490.93151.00961.16531.05510.83820.9475
AQI 8.86721.37660.82080.35980.67441.10831.37011.27990.77651.6504
SGI 2.76580.70511.41981.48740.92171.12290.83381.03561.27461.2011
DEPI 2.51720.47940.82280.94721.0891.03180.50910.72821.01181.0788
SGAI 0.71962.70590.78940.74331.28480.99641.07830.93850.8070.9917
LVGI 0.64540.83642.24090.59240.92971.17970.88261.77321.00720.8941
TATA -0.10440.00040.0507-0.0076-0.0345-0.0712-0.0376-0.2345-0.1013-0.0857
M-score 1.68-2.93-2.06-2.31-2.38-2.88-2.55-3.82-2.66-2.39

Taser International Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.14871.30561.02331.20550.90970.92671.1051.03431.01561.1352
GMI 0.99541.01661.00980.83820.86610.86660.87320.94750.95070.9587
AQI 1.10291.18731.05850.83940.86630.90480.90691.65041.54261.2819
SGI 1.07361.12791.13521.27461.29171.24021.24971.20111.20111.2031
DEPI 0.8030.88790.90021.01161.01120.99351.08671.07871.08981.1797
SGAI 0.91670.8790.87420.80690.85540.96231.02350.99230.98680.9776
LVGI 1.52991.27741.22671.03511.10041.17050.95360.89411.02810.7682
TATA -0.1839-0.1951-0.204-0.1013-0.1128-0.0896-0.0753-0.0859-0.075-0.0459
M-score -3.28-3.00-3.33-2.65-2.96-2.91-2.60-2.39-2.44-2.20
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