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Speedway Motorsports Inc (NYSE:TRK)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

TRK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.13   Max: -1.44
Current: -2.74

-3.13
-1.44

During the past 13 years, the highest Beneish M-Score of Speedway Motorsports Inc was -1.44. The lowest was -3.13. 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 * 0.9005+0.528 * 1.0114+0.404 * 0.8705+0.892 * 1.0192+0.115 * 1.225
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.006+4.679 * -0.04-0.327 * 0.9395
=-2.74

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $55.2 Mil.
Revenue was 83.176 + 87.745 + 144.123 + 179.321 = $494.4 Mil.
Gross Profit was 42.229 + 42.207 + 64.318 + 88.465 = $237.2 Mil.
Total Current Assets was $156.9 Mil.
Total Assets was $1,561.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,028.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $62.0 Mil.
Selling, General & Admin. Expense(SGA) was $99.3 Mil.
Total Current Liabilities was $138.8 Mil.
Long-Term Debt was $311.5 Mil.
Net Income was 0.861 + -6.293 + 8.553 + -32.224 = $-29.1 Mil.
Non Operating Income was -0.068 + -0.454 + -0.749 + -98.925 = $-100.2 Mil.
Cash Flow from Operations was 25.641 + 23.525 + 28.061 + 56.277 = $133.5 Mil.
Accounts Receivable was $60.1 Mil.
Revenue was 85.274 + 84.053 + 139.837 + 175.877 = $485.0 Mil.
Gross Profit was 43.947 + 41.07 + 62.604 + 87.776 = $235.4 Mil.
Total Current Assets was $200.3 Mil.
Total Assets was $1,721.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,044.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $78.2 Mil.
Selling, General & Admin. Expense(SGA) was $96.8 Mil.
Total Current Liabilities was $138.4 Mil.
Long-Term Debt was $390.0 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)
=(55.188 / 494.365) / (60.128 / 485.041)
=0.11163412 / 0.12396478
=0.9005

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)
=(235.397 / 485.041) / (237.219 / 494.365)
=0.48531361 / 0.47984586
=1.0114

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 - (156.867 + 1028.192) / 1561.487) / (1 - (200.301 + 1044.429) / 1721.485)
=0.24107021 / 0.27694403
=0.8705

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
=494.365 / 485.041
=1.0192

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))
=(78.209 / (78.209 + 1044.429)) / (62 / (62 + 1028.192))
=0.06966538 / 0.05687072
=1.225

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)
=(99.272 / 494.365) / (96.817 / 485.041)
=0.2008071 / 0.19960581
=1.006

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)
=((311.549 + 138.77) / 1561.487) / ((390 + 138.414) / 1721.485)
=0.28839113 / 0.30695243
=0.9395

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
=(-29.103 - -100.196 - 133.504) / 1561.487
=-0.04

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 -2.74 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 0.98060.96351.0321.03151.05671.00771.0171.01941.01691.0097
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 0.99520.92560.99960.90560.99010.98430.95150.97710.68021.2109
SGAI 1.02161.0470.95461.11281.11521.03541.04381.03411.04750.9909
LVGI 0.99550.9971.07450.97310.93920.9420.92550.96040.94070.9231
TATA -0.0125-0.0233-0.0476-0.0981-0.0585-0.0446-0.04470.0036-0.0569-0.0278
M-score -2.29-2.87-2.28-3.02-2.66-2.76-2.74-2.54-2.74-2.48

Speedway Motorsports Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.96971.02230.98571.15250.99990.85580.88111.04131.11340.9005
GMI 1.01941.01971.01281.0091.01691.01391.01341.01561.00971.0114
AQI 0.8880.89511.011.00461.04981.040.87910.88740.86950.8705
SGI 0.98060.98240.98921.00391.00761.00851.01751.02151.02511.0192
DEPI 0.97710.98310.95520.95620.68020.67750.71460.65271.21091.225
SGAI 1.03411.03981.05871.0581.04751.03681.0071.00110.99091.006
LVGI 0.96040.92860.87170.86910.94070.94840.96590.95350.92310.9395
TATA 0.00370.0147-0.0061-0.0161-0.0569-0.0571-0.0359-0.0286-0.0278-0.04
M-score -2.54-2.42-2.49-2.38-2.74-2.88-2.81-2.62-2.48-2.74
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