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USA Mobility Inc (NAS:USMO)
Beneish M-Score
-2.94 (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.

USA Mobility Inc has a M-score of -2.95 suggests that the company is not a manipulator.

USMO' s 10-Year Beneish M-Score Range
Min: -8.16   Max: -1.14
Current: -2.94

-8.16
-1.14

During the past 13 years, the highest Beneish M-Score of USA Mobility Inc was -1.14. The lowest was -8.16. And the median was -3.43.


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 USA Mobility 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 * 0.8574+0.528 * 0.9996+0.404 * 0.8896+0.892 * 0.9547+0.115 * 1.1173
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0618+4.679 * -0.0705-0.327 * 0.761
=-2.95

* 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 $18.2 Mil.
Revenue was 54.685 + 49.669 + 52.268 + 53.13 = $209.8 Mil.
Gross Profit was 36.353 + 31.758 + 33.961 + 34.915 = $137.0 Mil.
Total Current Assets was $120.2 Mil.
Total Assets was $326.9 Mil.
Property, Plant and Equipment(Net PPE) was $21.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.2 Mil.
Selling, General & Admin. Expense(SGA) was $75.3 Mil.
Total Current Liabilities was $46.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 8.015 + 5.762 + 6.828 + 6.925 = $27.5 Mil.
Non Operating Income was 0.015 + 0.084 + -0.075 + 0.081 = $0.1 Mil.
Cash Flow from Operations was 11.152 + 16.162 + 7.472 + 15.67 = $50.5 Mil.
Accounts Receivable was $22.3 Mil.
Revenue was 51.884 + 55.116 + 55.961 + 56.735 = $219.7 Mil.
Gross Profit was 32.676 + 36.28 + 36.853 + 37.616 = $143.4 Mil.
Total Current Assets was $95.9 Mil.
Total Assets was $322.6 Mil.
Property, Plant and Equipment(Net PPE) was $20.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.2 Mil.
Selling, General & Admin. Expense(SGA) was $74.3 Mil.
Total Current Liabilities was $60.7 Mil.
Long-Term Debt was $0.0 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)
=(18.242 / 209.752) / (22.284 / 219.696)
=0.08696937 / 0.10143107
=0.8574

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)
=(31.758 / 219.696) / (36.353 / 209.752)
=0.65283392 / 0.65309032
=0.9996

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 - (120.168 + 21.122) / 326.898) / (1 - (95.909 + 20.809) / 322.627)
=0.56778567 / 0.63822619
=0.8896

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
=209.752 / 219.696
=0.9547

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))
=(18.232 / (18.232 + 20.809)) / (15.167 / (15.167 + 21.122))
=0.46699623 / 0.41795034
=1.1173

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)
=(75.343 / 209.752) / (74.325 / 219.696)
=0.35920039 / 0.33830839
=1.0618

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)
=((0 + 46.827) / 326.898) / ((0 + 60.726) / 322.627)
=0.14324652 / 0.18822355
=0.761

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
=(27.53 - 0.105 - 50.456) / 326.898
=-0.0705

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.

USA Mobility Inc has a M-score of -2.95 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.

USA Mobility Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.75480.85831.32480.99581.19380.94681.91480.67070.8574
GMI 1.03081.01161.01420.97630.93950.99811.06120.98940.9996
AQI 1.13931.00320.98310.47240.54711.32292.99820.99860.8896
SGI 1.2620.80460.85320.84650.8060.80511.00190.94010.9547
DEPI 0.64791.12021.13880.88870.88991.07021.01650.99151.1173
SGAI 1.03640.95670.92450.95731.08640.9871.02541.00731.0618
LVGI 0.51111.0290.95731.60210.94340.73351.77470.70950.761
TATA -0.1957-0.1834-0.2446-1.0927-0.1631-0.0188-0.0186-0.1445-0.0705
M-score -3.20-3.62-3.41-8.16-3.46-2.56-1.14-3.43-2.95

USA Mobility Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 2.12131.91480.72390.80760.80080.67070.8520.66750.83160.8574
GMI 1.0291.06121.06121.03471.02140.98940.98890.99851.00650.9996
AQI 5.10822.99820.98810.99530.97770.99860.87860.89060.87970.8896
SGI 0.97811.00191.02320.95730.91160.94010.92710.94870.95140.9547
DEPI 1.12771.01650.93880.95880.98450.99151.04481.05671.09391.1173
SGAI 1.03251.02540.98111.01961.03611.00731.05141.05251.05461.0618
LVGI 1.57551.77470.48310.62470.62020.70951.2020.97311.10940.761
TATA 0.0707-0.0186-0.1318-0.1332-0.114-0.1445-0.1474-0.1216-0.1181-0.0705
M-score 0.36-1.14-3.14-3.19-3.16-3.43-3.50-3.44-3.31-2.95
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