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Speedway Motorsports Inc (NYSE:TRK)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

TRK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.1   Max: -2.1
Current: -2.48

-3.1
-2.1

During the past 13 years, the highest Beneish M-Score of Speedway Motorsports Inc was -2.10. The lowest was -3.10. And the median was -2.60.


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 * 1.1134+0.528 * 1.0097+0.404 * 0.8695+0.892 * 1.0251+0.115 * 1.2109
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9909+4.679 * -0.0278-0.327 * 0.9231
=-2.48

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $39.8 Mil.
Revenue was 87.745 + 144.123 + 179.321 + 85.274 = $496.5 Mil.
Gross Profit was 42.207 + 64.318 + 88.465 + 43.947 = $238.9 Mil.
Total Current Assets was $142.9 Mil.
Total Assets was $1,539.2 Mil.
Property, Plant and Equipment(Net PPE) was $1,019.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $62.0 Mil.
Selling, General & Admin. Expense(SGA) was $98.3 Mil.
Total Current Liabilities was $108.4 Mil.
Long-Term Debt was $313.7 Mil.
Net Income was -6.293 + 8.553 + -32.224 + -4.399 = $-34.4 Mil.
Non Operating Income was -0.454 + -0.749 + -98.925 + -7.982 = $-108.1 Mil.
Cash Flow from Operations was 23.525 + 28.061 + 56.277 + 8.718 = $116.6 Mil.
Accounts Receivable was $34.9 Mil.
Revenue was 84.053 + 139.837 + 175.877 + 84.542 = $484.3 Mil.
Gross Profit was 41.07 + 62.604 + 87.776 + 43.896 = $235.3 Mil.
Total Current Assets was $165.4 Mil.
Total Assets was $1,694.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,052.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $78.4 Mil.
Selling, General & Admin. Expense(SGA) was $96.8 Mil.
Total Current Liabilities was $105.6 Mil.
Long-Term Debt was $397.7 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)
=(39.783 / 496.463) / (34.855 / 484.309)
=0.08013286 / 0.07196852
=1.1134

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)
=(64.318 / 484.309) / (42.207 / 496.463)
=0.48594183 / 0.48127856
=1.0097

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 - (142.886 + 1019.65) / 1539.197) / (1 - (165.438 + 1052.153) / 1694.481)
=0.24471267 / 0.28143721
=0.8695

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
=496.463 / 484.309
=1.0251

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))
=(78.426 / (78.426 + 1052.153)) / (61.964 / (61.964 + 1019.65))
=0.069368 / 0.05728846
=1.2109

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)
=(98.289 / 496.463) / (96.762 / 484.309)
=0.1979785 / 0.19979393
=0.9909

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)
=((313.706 + 108.369) / 1539.197) / ((397.747 + 105.631) / 1694.481)
=0.27421766 / 0.29706913
=0.9231

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
=(-34.363 - -108.11 - 116.581) / 1539.197
=-0.0278

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 -2.48 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.26750.82560.92761.05181.15230.92060.95260.96970.99991.1134
GMI 0.98061.0270.96821.03151.05671.00771.0171.01941.01691.0097
AQI 0.95160.81422.00470.92041.00760.94291.00950.8881.04980.8695
SGI 1.04280.98991.08790.9010.91231.00720.9690.98061.00761.0251
DEPI 0.99520.92561.03130.87780.99010.98430.95150.97710.68021.2109
SGAI 1.02161.04790.95381.11281.11521.03541.04381.03411.04750.9909
LVGI 0.99550.9971.07450.97310.93920.9420.92550.96040.94070.9231
TATA -0.0125-0.0233-0.0312-0.0981-0.0585-0.096-0.06460.0042-0.0569-0.0278
M-score -2.29-2.84-2.24-3.02-2.66-3.00-2.83-2.54-2.74-2.48

Speedway Motorsports Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.67810.96971.02230.98571.15250.99990.85580.88111.04131.1134
GMI 1.0091.01941.01971.01281.0091.01691.01391.01341.01561.0097
AQI 0.91130.8880.89511.011.00461.04981.040.87910.88740.8695
SGI 0.96650.98060.98240.98921.00391.00761.00851.01751.02151.0251
DEPI 0.98150.97710.98310.95520.95620.68020.67750.71460.65271.2109
SGAI 1.01771.03411.03981.05871.0581.04751.03681.0071.00110.9909
LVGI 0.98720.96040.92860.87170.86910.94070.94840.96590.95350.9231
TATA -0.02950.00370.0147-0.0061-0.0161-0.0569-0.0571-0.0359-0.0286-0.0278
M-score -2.98-2.54-2.42-2.49-2.38-2.74-2.88-2.81-2.62-2.48
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