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Speedway Motorsports Inc (NYSE:TRK)
Beneish M-Score
-2.37 (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 -2.37 suggests that the company is not a manipulator.

TRK' s 10-Year Beneish M-Score Range
Min: -3.13   Max: -1.44
Current: -2.37

-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 -2.56.


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 * 1.1525+0.528 * 1.009+0.404 * 1.0046+0.892 * 1.0039+0.115 * 0.9562
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.058+4.679 * -0.0155-0.327 * 0.8691
=-2.37

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $36.3 Mil.
Revenue was 139.837 + 175.877 + 84.542 + 82.164 = $482.4 Mil.
Gross Profit was 62.604 + 87.776 + 43.896 + 42.154 = $236.4 Mil.
Total Current Assets was $179.1 Mil.
Total Assets was $1,740.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,084.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $55.7 Mil.
Selling, General & Admin. Expense(SGA) was $95.8 Mil.
Total Current Liabilities was $109.7 Mil.
Long-Term Debt was $391.4 Mil.
Net Income was 14.995 + 27.199 + 1.867 + 50.427 = $94.5 Mil.
Non Operating Income was 0.061 + 1.097 + 1.261 + -0.087 = $2.3 Mil.
Cash Flow from Operations was 46.714 + 56.946 + 3.524 + 12.001 = $119.2 Mil.
Accounts Receivable was $31.4 Mil.
Revenue was 137.5 + 176.763 + 84.222 + 82.079 = $480.6 Mil.
Gross Profit was 61.3 + 89.306 + 44.746 + 42.281 = $237.6 Mil.
Total Current Assets was $160.0 Mil.
Total Assets was $1,755.9 Mil.
Property, Plant and Equipment(Net PPE) was $1,116.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $54.7 Mil.
Selling, General & Admin. Expense(SGA) was $90.2 Mil.
Total Current Liabilities was $108.0 Mil.
Long-Term Debt was $473.7 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)
=(36.274 / 482.42) / (31.353 / 480.564)
=0.07519174 / 0.06524209
=1.1525

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)
=(87.776 / 480.564) / (62.604 / 482.42)
=0.49448773 / 0.49009162
=1.009

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 - (179.104 + 1084.405) / 1740.553) / (1 - (160.025 + 1116.825) / 1755.879)
=0.27407611 / 0.27281436
=1.0046

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
=482.42 / 480.564
=1.0039

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))
=(54.727 / (54.727 + 1116.825)) / (55.7 / (55.7 + 1084.405))
=0.04671325 / 0.04885515
=0.9562

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)
=(95.787 / 482.42) / (90.189 / 480.564)
=0.1985552 / 0.18767323
=1.058

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)
=((391.448 + 109.673) / 1740.553) / ((473.694 + 107.993) / 1755.879)
=0.28790907 / 0.33127966
=0.8691

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
=(94.488 - 2.332 - 119.185) / 1740.553
=-0.0155

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 -2.37 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 0.99561.01620.98061.0270.96821.03151.05671.00771.0171.0194
AQI 1.68661.56840.9480.81732.00470.92041.00760.94291.00950.888
SGI 1.10381.21851.04280.98991.08790.9010.91231.00720.9690.9806
DEPI 0.96291.01430.99520.92561.03130.87780.99010.98430.95150.9771
SGAI 1.00560.92311.02161.04790.95381.11281.11521.03541.04381.0341
LVGI 1.00880.96550.95581.03841.07120.97610.93920.9420.92550.9604
TATA -0.0498-0.0242-0.0125-0.0233-0.0312-0.0752-0.0318-0.0739-0.04480.0042
M-score -2.29-2.16-2.28-2.85-2.24-2.91-2.53-2.90-2.74-2.54

Speedway Motorsports Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.94091.13240.95261.02731.0450.67810.96971.02230.98571.1525
GMI 1.01531.03831.0171.01911.02761.0091.01941.01971.01281.009
AQI 0.99141.00561.00951.01460.90880.91130.8880.89511.011.0046
SGI 1.19290.99520.9690.97140.91240.96650.98060.98240.98921.0039
DEPI 0.92570.91980.95150.95970.96960.98150.97710.98310.95520.9562
SGAI 0.90171.05171.04381.03951.08281.01771.03411.03981.05871.058
LVGI 0.91750.93240.92550.93610.99040.98720.96040.92860.87170.8691
TATA -0.0687-0.0732-0.0448-0.0405-0.0295-0.02950.00420.0154-0.0055-0.0155
M-score -2.64-2.68-2.74-2.64-2.69-2.98-2.54-2.42-2.49-2.37
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