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Speedway Motorsports Inc (NYSE:TRK)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

TRK' s 10-Year Beneish M-Score Range
Min: -3.26   Max: -1.44
Current: -2.49

-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 -2.54.


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 * 0.9857+0.528 * 1.0128+0.404 * 1.01+0.892 * 0.9892+0.115 * 0.9552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0587+4.679 * -0.0056-0.327 * 0.8717
=-2.49

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 27.199 + 1.867 + 50.427 + 12.294 = $91.8 Mil.
Non Operating Income was 1.097 + 1.261 + -0.087 + 0.037 = $2.3 Mil.
Cash Flow from Operations was 56.946 + 3.524 + 11.671 + 27.317 = $99.5 Mil.
Accounts Receivable was $58.7 Mil.
Revenue was 176.763 + 84.222 + 82.079 + 142.256 = $485.3 Mil.
Gross Profit was 89.306 + 44.746 + 42.281 + 64.398 = $240.7 Mil.
Total Current Assets was $193.1 Mil.
Total Assets was $1,798.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,126.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $55.1 Mil.
Selling, General & Admin. Expense(SGA) was $90.1 Mil.
Total Current Liabilities was $136.2 Mil.
Long-Term Debt was $494.2 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)
=(57.25 / 480.083) / (58.716 / 485.32)
=0.11925021 / 0.12098409
=0.9857

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)
=(43.896 / 485.32) / (87.776 / 480.083)
=0.4960253 / 0.48976115
=1.0128

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 - (203.605 + 1093.077) / 1774.264) / (1 - (193.13 + 1126.139) / 1798.643)
=0.26917189 / 0.26651982
=1.01

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
=480.083 / 485.32
=0.9892

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))
=(55.053 / (55.053 + 1126.139)) / (56.073 / (56.073 + 1093.077))
=0.046608 / 0.0487952
=0.9552

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)
=(94.328 / 480.083) / (90.074 / 485.32)
=0.19648269 / 0.18559713
=1.0587

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)
=((412.019 + 130.085) / 1774.264) / ((494.24 + 136.186) / 1798.643)
=0.30553739 / 0.35050091
=0.8717

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
=(91.787 - 2.308 - 99.458) / 1774.264
=-0.0056

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 -2.49 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 -0.0498-0.0242-0.0125-0.0233-0.0299-0.0752-0.0318-0.0739-0.04270.0042
M-score -2.29-2.16-2.29-2.87-2.20-2.91-2.53-2.90-2.73-2.54

Speedway Motorsports Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.92730.94091.13240.95261.02731.0450.67810.96971.02230.9857
GMI 0.99911.01531.03831.0171.01911.02761.0091.01941.01971.0128
AQI 0.93610.99141.00561.00951.01460.90880.91130.8880.89511.01
SGI 1.07121.19290.99520.9690.97140.91240.96650.98060.98240.9892
DEPI 0.95510.92570.91980.95150.95970.96960.98150.97710.98310.9552
SGAI 0.98120.90171.05171.04381.03951.08281.01771.03411.03981.0587
LVGI 0.94590.91750.93240.92550.93610.99040.98720.96040.92860.8717
TATA -0.0635-0.0397-0.0435-0.0427-0.0385-0.0273-0.02760.00420.0154-0.0056
M-score -2.79-2.51-2.54-2.73-2.64-2.68-2.97-2.54-2.42-2.49
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