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Speedway Motorsports Inc (NYSE:TRK)
Beneish M-Score
-2.81 (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.

Speedway Motorsports Inc has a M-score of -2.81 suggests that the company is not a manipulator.

TRK' s 10-Year Beneish M-Score Range
Min: -3.26   Max: -1.44
Current: -2.81

-3.26
-1.44

During the past 13 years, the highest Beneish M-Score of Speedway Motorsports Inc was -1.44. The lowest was -3.26. And the median was -2.59.


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 Speedway Motorsports 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 * 0.8811+0.528 * 1.0134+0.404 * 0.8791+0.892 * 1.0175+0.115 * 0.7146
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.007+4.679 * -0.0359-0.327 * 0.9659
=-2.81

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $51.3 Mil.
Revenue was 179.321 + 85.274 + 84.053 + 139.837 = $488.5 Mil.
Gross Profit was 88.465 + 43.947 + 41.07 + 62.604 = $236.1 Mil.
Total Current Assets was $177.8 Mil.
Total Assets was $1,595.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,040.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $76.2 Mil.
Selling, General & Admin. Expense(SGA) was $96.7 Mil.
Total Current Liabilities was $130.2 Mil.
Long-Term Debt was $340.6 Mil.
Net Income was -32.224 + -4.399 + -12.947 + 14.995 = $-34.6 Mil.
Non Operating Income was -98.925 + -7.982 + -0.182 + 0.061 = $-107.0 Mil.
Cash Flow from Operations was 56.277 + 8.718 + 18.094 + 46.714 = $129.8 Mil.
Accounts Receivable was $57.3 Mil.
Revenue was 175.877 + 84.542 + 82.164 + 137.5 = $480.1 Mil.
Gross Profit was 87.776 + 43.896 + 42.154 + 61.3 = $235.1 Mil.
Total Current Assets was $203.6 Mil.
Total Assets was $1,774.3 Mil.
Property, Plant and Equipment(Net PPE) was $1,093.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $56.1 Mil.
Selling, General & Admin. Expense(SGA) was $94.3 Mil.
Total Current Liabilities was $130.1 Mil.
Long-Term Debt was $412.0 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)
=(51.324 / 488.485) / (57.25 / 480.083)
=0.10506771 / 0.11925021
=0.8811

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)
=(43.947 / 480.083) / (88.465 / 488.485)
=0.48976115 / 0.48330246
=1.0134

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 - (177.82 + 1040.059) / 1595.381) / (1 - (203.605 + 1093.077) / 1774.264)
=0.23662185 / 0.26917189
=0.8791

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
=488.485 / 480.083
=1.0175

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))
=(56.073 / (56.073 + 1093.077)) / (76.225 / (76.225 + 1040.059))
=0.0487952 / 0.06828459
=0.7146

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)
=(96.655 / 488.485) / (94.328 / 480.083)
=0.19786687 / 0.19648269
=1.007

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)
=((340.625 + 130.211) / 1595.381) / ((412.019 + 130.085) / 1774.264)
=0.29512449 / 0.30553739
=0.9659

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
=(-34.575 - -107.028 - 129.803) / 1595.381
=-0.0359

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.

Speedway Motorsports Inc has a M-score of -2.81 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.

Speedway Motorsports Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.97081.26750.82560.92761.05181.15230.92060.95260.96970.9999
GMI 1.01620.98060.96351.0321.03151.05671.00771.0171.01941.0169
AQI 1.56840.95160.81422.00470.92041.00760.94291.00950.8881.0353
SGI 1.21851.04280.98991.08790.9010.91231.00720.9690.98061.0076
DEPI 1.01430.99520.92560.99960.90560.99010.98430.95150.97710.6802
SGAI 0.92311.02161.0470.95461.11281.11521.03541.04381.03411.0475
LVGI 0.96550.99550.9971.07450.97310.93920.9420.92550.96040.9277
TATA -0.0242-0.0125-0.0233-0.0299-0.0752-0.0318-0.0739-0.04480.0044-0.0561
M-score -2.16-2.29-2.87-2.20-2.91-2.53-2.90-2.74-2.54-2.73

Speedway Motorsports Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.02731.0450.67810.96971.02230.98571.15250.99990.85580.8811
GMI 1.01911.02761.0091.01941.01971.01281.0091.01691.01391.0134
AQI 1.01460.90880.91130.8880.89511.011.00461.03531.040.8791
SGI 0.97140.91240.96650.98060.98240.98921.00391.00761.00851.0175
DEPI 0.95970.96960.98150.97710.98310.95520.95620.68020.67750.7146
SGAI 1.03951.08281.01771.03411.03981.05871.0581.04751.03681.007
LVGI 0.93610.99040.98720.96040.92860.87170.86910.92770.94840.9659
TATA -0.0405-0.0295-0.02950.00450.0155-0.0053-0.0153-0.0561-0.0572-0.0359
M-score -2.64-2.69-2.98-2.53-2.42-2.49-2.37-2.73-2.88-2.81
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