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Speedway Motorsports Inc (NYSE:TRK)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

TRK' s 10-Year Beneish M-Score Range
Min: -3.26   Max: -2.1
Current: -2.54

-3.26
-2.1

During the past 13 years, the highest Beneish M-Score of Speedway Motorsports Inc was -2.10. The lowest was -3.26. And the median was -2.54.


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 * 0.9697+0.528 * 1.0194+0.404 * 0.888+0.892 * 0.9806+0.115 * 0.9771
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0341+4.679 * 0.0042-0.327 * 0.9604
=-2.54

* 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 $34.6 Mil.
Revenue was 82.164 + 137.5 + 176.763 + 84.222 = $480.6 Mil.
Gross Profit was 42.154 + 61.3 + 89.306 + 44.746 = $237.5 Mil.
Total Current Assets was $202.2 Mil.
Total Assets was $1,786.3 Mil.
Property, Plant and Equipment(Net PPE) was $1,105.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $54.7 Mil.
Selling, General & Admin. Expense(SGA) was $91.7 Mil.
Total Current Liabilities was $111.0 Mil.
Long-Term Debt was $453.1 Mil.
Net Income was 50.427 + 12.294 + -67.811 + -1.368 = $-6.5 Mil.
Non Operating Income was -0.087 + 0.037 + -107.637 + -0.11 = $-107.8 Mil.
Cash Flow from Operations was 11.671 + 27.317 + 33.013 + 21.822 = $93.8 Mil.
Accounts Receivable was $36.4 Mil.
Revenue was 82.079 + 142.256 + 181.023 + 84.802 = $490.2 Mil.
Gross Profit was 42.281 + 64.398 + 94.217 + 46.004 = $246.9 Mil.
Total Current Assets was $162.0 Mil.
Total Assets was $1,877.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,148.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $55.5 Mil.
Selling, General & Admin. Expense(SGA) was $90.4 Mil.
Total Current Liabilities was $113.7 Mil.
Long-Term Debt was $503.6 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)
=(34.594 / 480.649) / (36.382 / 490.16)
=0.07197352 / 0.07422474
=0.9697

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)
=(61.3 / 490.16) / (42.154 / 480.649)
=0.50371307 / 0.49413605
=1.0194

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 - (202.208 + 1105.177) / 1786.26) / (1 - (162.002 + 1148.418) / 1877.113)
=0.26808807 / 0.30189605
=0.888

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
=480.649 / 490.16
=0.9806

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))
=(55.499 / (55.499 + 1148.418)) / (54.725 / (54.725 + 1105.177))
=0.04609869 / 0.04718071
=0.9771

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)
=(91.676 / 480.649) / (90.407 / 490.16)
=0.19073378 / 0.18444386
=1.0341

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)
=((453.142 + 110.954) / 1786.26) / ((503.55 + 113.67) / 1877.113)
=0.31579725 / 0.32881345
=0.9604

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
=(-6.458 - -107.797 - 93.823) / 1786.26
=0.0042

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 -2.54 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.0730.97081.26750.82560.92761.05181.15230.92060.95260.9697
GMI 0.99561.01620.98060.96351.0321.03151.05671.00771.0171.0194
AQI 1.68661.56840.95160.81422.00470.92041.00760.94291.00950.888
SGI 1.10381.21851.04280.98991.08790.9010.91231.00720.9690.9806
DEPI 0.96291.01430.99520.92560.99960.90560.99010.98430.95150.9771
SGAI 1.00560.92311.02161.0470.95461.11281.11521.03541.04381.0341
LVGI 1.00880.96550.99550.9971.07450.97310.93920.9420.92550.9604
TATA -0.0498-0.0242-0.0125-0.0233-0.0299-0.0752-0.0318-0.0739-0.04480.0042
M-score -2.29-2.16-2.29-2.87-2.20-2.91-2.53-2.90-2.74-2.54

Speedway Motorsports Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.19880.92060.92730.94091.13240.95261.02731.0450.67810.9697
GMI 1.01911.00770.99911.01531.03831.0171.01911.02761.0091.0194
AQI 0.94050.94290.93610.99141.00561.00951.01460.90880.91130.888
SGI 0.97991.00721.07121.19290.99520.9690.97140.91240.96650.9806
DEPI 1.0510.98430.95510.92570.91980.95150.95970.96960.98150.9771
SGAI 1.0551.03540.98120.90171.05171.04381.03951.08281.01771.0341
LVGI 0.96260.9420.94590.91750.93240.92550.93610.99040.98720.9604
TATA -0.0625-0.0739-0.0703-0.0398-0.0435-0.0448-0.0405-0.0294-0.02980.0042
M-score -2.61-2.90-2.82-2.51-2.54-2.74-2.64-2.69-2.98-2.54
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