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Taser International Inc (NAS:TASR)
Beneish M-Score
-2.84 (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 -2.84 suggests that the company is not a manipulator.

TASR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83   Max: 5.77
Current: -2.84

-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 -2.53.


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 * 0.7506+0.528 * 1.0014+0.404 * 1.4472+0.892 * 1.1961+0.115 * 1.4187
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0077+4.679 * -0.1086-0.327 * 1.0688
=-2.84

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $24.3 Mil.
Revenue was 50.376 + 46.713 + 44.762 + 46.816 = $188.7 Mil.
Gross Profit was 31.068 + 30.723 + 29.868 + 27.413 = $119.1 Mil.
Total Current Assets was $150.2 Mil.
Total Assets was $213.5 Mil.
Property, Plant and Equipment(Net PPE) was $19.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.3 Mil.
Selling, General & Admin. Expense(SGA) was $62.7 Mil.
Total Current Liabilities was $33.0 Mil.
Long-Term Debt was $0.1 Mil.
Net Income was 1.521 + 6.103 + 7.205 + 5.086 = $19.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 19.345 + -2.039 + 13.008 + 12.794 = $43.1 Mil.
Accounts Receivable was $27.1 Mil.
Revenue was 44.349 + 37.175 + 36.185 + 40.025 = $157.7 Mil.
Gross Profit was 28.713 + 23.214 + 22.208 + 25.554 = $99.7 Mil.
Total Current Assets was $123.2 Mil.
Total Assets was $164.1 Mil.
Property, Plant and Equipment(Net PPE) was $17.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.5 Mil.
Selling, General & Admin. Expense(SGA) was $52.0 Mil.
Total Current Liabilities was $23.8 Mil.
Long-Term Debt was $0.0 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)
=(24.328 / 188.667) / (27.099 / 157.734)
=0.12894677 / 0.17180189
=0.7506

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)
=(30.723 / 157.734) / (31.068 / 188.667)
=0.63200705 / 0.63112256
=1.0014

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 - (150.155 + 19.855) / 213.477) / (1 - (123.199 + 17.848) / 164.14)
=0.20361444 / 0.14069087
=1.4472

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
=188.667 / 157.734
=1.1961

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))
=(4.463 / (4.463 + 17.848)) / (3.259 / (3.259 + 19.855))
=0.20003586 / 0.1409968
=1.4187

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)
=(62.672 / 188.667) / (51.998 / 157.734)
=0.33218316 / 0.32965626
=1.0077

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)
=((0.098 + 33.006) / 213.477) / ((0.039 + 23.776) / 164.14)
=0.15507057 / 0.14508956
=1.0688

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
=(19.915 - 0 - 43.108) / 213.477
=-0.1086

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 -2.84 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.90891.30780.78071.55830.81591.05570.83991.20551.03431.145
GMI 1.07640.97331.11490.93151.00961.16531.05510.83820.94751.0091
AQI 1.37660.82080.35980.67441.15381.3161.18410.83941.63920.7037
SGI 0.70511.41981.48740.92171.12290.83381.03561.27461.20111.1937
DEPI 0.47940.82280.94721.0891.03180.50910.7281.0121.07881.0738
SGAI 2.70590.78940.74331.28480.99641.07630.94030.8070.99170.9745
LVGI 0.83642.24090.59240.92971.18180.8811.72531.03510.99771.1044
TATA 0.00040.0507-0.0076-0.0345-0.0731-0.0376-0.2316-0.1013-0.0956-0.0837
M-score -2.93-2.06-2.31-2.38-2.87-2.57-3.83-2.65-2.47-2.70

Taser International Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.92671.1051.03431.01561.13521.11091.1450.85050.91710.7506
GMI 0.86660.87320.94750.95070.95870.96771.00910.98910.98021.0014
AQI 0.90480.90691.63921.54261.28190.9670.70370.89581.03591.4472
SGI 1.24021.24971.20111.20111.20311.21411.19371.20561.22921.1961
DEPI 1.00681.08711.07891.091.17131.09731.07381.16521.25971.4187
SGAI 0.95481.00970.99850.9940.99740.91960.97880.93260.89311.0077
LVGI 1.16550.95360.99771.03380.77150.89621.10441.03631.09641.0688
TATA -0.0895-0.0752-0.0956-0.0842-0.0562-0.0717-0.0837-0.1042-0.0683-0.1086
M-score -2.91-2.59-2.48-2.49-2.25-2.49-2.70-2.95-2.65-2.84
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