Switch to:
Taser International Inc (NAS:TASR)
Beneish M-Score
-2.47 (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 -2.47 suggests that the company is not a manipulator.

TASR' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 1.69
Current: -2.47

-3.83
1.69

During the past 13 years, the highest Beneish M-Score of Taser International Inc was 1.69. 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 * 1.0343+0.528 * 0.9475+0.404 * 1.6392+0.892 * 1.2011+0.115 * 1.0787
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9929+4.679 * -0.0956-0.327 * 0.9977
=-2.47

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $22.5 Mil.
Revenue was 40.025 + 35.197 + 32.176 + 30.434 = $137.8 Mil.
Gross Profit was 25.554 + 22.096 + 19.742 + 18.451 = $85.8 Mil.
Total Current Assets was $97.5 Mil.
Total Assets was $148.4 Mil.
Property, Plant and Equipment(Net PPE) was $19.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.1 Mil.
Selling, General & Admin. Expense(SGA) was $46.6 Mil.
Total Current Liabilities was $23.1 Mil.
Long-Term Debt was $0.1 Mil.
Net Income was 5.375 + 5.114 + 4.458 + 3.298 = $18.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 9.339 + 10.863 + 7.704 + 4.52 = $32.4 Mil.
Accounts Receivable was $18.1 Mil.
Revenue was 32.116 + 28.773 + 28.222 + 25.641 = $114.8 Mil.
Gross Profit was 19.168 + 16.803 + 16.502 + 15.241 = $67.7 Mil.
Total Current Assets was $79.1 Mil.
Total Assets was $116.2 Mil.
Property, Plant and Equipment(Net PPE) was $22.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.5 Mil.
Selling, General & Admin. Expense(SGA) was $39.1 Mil.
Total Current Liabilities was $18.1 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)
=(22.488 / 137.832) / (18.101 / 114.752)
=0.16315515 / 0.15774017
=1.0343

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)
=(22.096 / 114.752) / (25.554 / 137.832)
=0.59008993 / 0.62280893
=0.9475

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 - (97.467 + 19.043) / 148.382) / (1 - (79.053 + 21.952) / 116.236)
=0.21479694 / 0.13103514
=1.6392

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
=137.832 / 114.752
=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))
=(6.52 / (6.52 + 21.952)) / (5.132 / (5.132 + 19.043))
=0.22899691 / 0.21228542
=1.0787

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)
=(46.613 / 137.832) / (39.086 / 114.752)
=0.33818707 / 0.3406128
=0.9929

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)
=((0.067 + 23.129) / 148.382) / ((0.103 + 18.109) / 116.236)
=0.15632624 / 0.15668123
=0.9977

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
=(18.245 - 0 - 32.426) / 148.382
=-0.0956

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 -2.47 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 0.56961.00641.17380.78071.55830.81591.05570.83991.20551.0343
GMI 0.92141.07640.97331.11490.93151.00961.16531.05510.83820.9475
AQI 8.86721.37660.82080.35980.67441.15381.3161.18410.83941.6392
SGI 2.76580.70511.41981.48740.92171.12290.83381.03561.27461.2011
DEPI 2.51720.47940.82280.94721.0891.03180.50910.7281.0121.0788
SGAI 0.71962.70590.78940.74331.28480.99641.07630.94030.8070.9923
LVGI 0.64540.83642.24090.59240.92971.18180.8811.72531.03510.9977
TATA -0.10440.00040.0507-0.0076-0.0345-0.0731-0.0376-0.2316-0.1013-0.0956
M-score 1.69-2.84-2.18-2.31-2.38-2.87-2.57-3.83-2.65-2.47

Taser International Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.04030.83991.14871.30561.02331.20550.90970.92671.1051.0343
GMI 1.04051.05530.99531.01651.00990.83820.86620.86660.87320.9475
AQI 1.08311.18411.10291.18731.05850.83940.86630.90480.90691.6392
SGI 0.92931.03561.07361.12791.13521.27461.29171.24021.24971.2011
DEPI 0.7610.72810.80280.88250.91.01181.01141.00661.0871.0787
SGAI 1.01340.94070.91810.87990.87420.80690.85540.96231.02350.9929
LVGI 1.69061.72531.52991.27741.22671.03511.10041.17050.95360.9977
TATA -0.1632-0.2316-0.1838-0.1945-0.2034-0.1013-0.1123-0.0895-0.0752-0.0956
M-score -3.47-3.83-3.28-2.99-3.32-2.65-2.96-2.91-2.60-2.47
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide