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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-1.56 (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.

Veeco Instruments Inc has a M-score of -1.56 signals that the company is a manipulator.

VECO' s 10-Year Beneish M-Score Range
Min: -5.14   Max: 0.14
Current: -1.56

-5.14
0.14

During the past 13 years, the highest Beneish M-Score of Veeco Instruments Inc was 0.14. The lowest was -5.14. And the median was -2.49.


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 Veeco Instruments 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 * 1.4502+0.528 * 1.1873+0.404 * 2.4251+0.892 * 0.899+0.115 * 0.6884
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.387+4.679 * 0.0059-0.327 * 1.0102
=-1.56

* 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 $58.3 Mil.
Revenue was 95.122 + 90.841 + 73.209 + 99.324 = $358.5 Mil.
Gross Profit was 30.673 + 33.777 + 15.642 + 30.308 = $110.4 Mil.
Total Current Assets was $633.6 Mil.
Total Assets was $957.1 Mil.
Property, Plant and Equipment(Net PPE) was $83.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.0 Mil.
Selling, General & Admin. Expense(SGA) was $89.6 Mil.
Total Current Liabilities was $128.0 Mil.
Long-Term Debt was $1.7 Mil.
Net Income was -15.211 + 19.16 + -22.085 + -6.026 = $-24.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 1.625 + -18.401 + -3.883 + -9.141 = $-29.8 Mil.
Accounts Receivable was $44.7 Mil.
Revenue was 97.435 + 61.781 + 106.849 + 132.715 = $398.8 Mil.
Gross Profit was 34.64 + 22.552 + 38.727 + 49.884 = $145.8 Mil.
Total Current Assets was $744.0 Mil.
Total Assets was $938.1 Mil.
Property, Plant and Equipment(Net PPE) was $96.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.3 Mil.
Selling, General & Admin. Expense(SGA) was $71.9 Mil.
Total Current Liabilities was $123.8 Mil.
Long-Term Debt was $2.0 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)
=(58.323 / 358.496) / (44.736 / 398.78)
=0.16268801 / 0.11218216
=1.4502

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)
=(33.777 / 398.78) / (30.673 / 358.496)
=0.36562265 / 0.30795323
=1.1873

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 - (633.593 + 83.141) / 957.072) / (1 - (743.984 + 96.949) / 938.068)
=0.25111799 / 0.10354793
=2.4251

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
=358.496 / 398.78
=0.899

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))
=(16.343 / (16.343 + 96.949)) / (22.04 / (22.04 + 83.141))
=0.14425555 / 0.20954355
=0.6884

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)
=(89.617 / 358.496) / (71.871 / 398.78)
=0.24998047 / 0.18022719
=1.387

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)
=((1.694 + 127.974) / 957.072) / ((1.995 + 123.809) / 938.068)
=0.13548406 / 0.13410968
=1.0102

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
=(-24.162 - 0 - -29.8) / 957.072
=0.0059

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.

Veeco Instruments Inc has a M-score of -1.56 signals that the company is likely to 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.

Veeco Instruments Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.87940.98860.90250.95180.7211.77520.67610.60031.26120.5866
GMI 1.16990.91580.96431.12470.98131.01250.81570.99671.1621.341
AQI 0.96240.95570.8961.05230.75260.75330.42061.40810.98892.5649
SGI 1.39781.05061.07520.91261.10020.63783.29621.05180.5270.6429
DEPI 0.85360.99711.03061.05890.97781.18471.16521.55940.92120.8256
SGAI 0.86820.97671.02281.07060.92761.04970.42591.03661.45821.8188
LVGI 1.15770.99370.92270.91980.97420.86560.84580.5410.67271.1237
TATA -0.1094-0.0802-0.0543-0.1074-0.2868-0.12320.14590.017-0.0865-0.0453
M-score -2.72-2.88-2.79-3.00-4.08-2.70-0.21-2.35-2.97-2.78

Veeco Instruments Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.17021.10690.94771.26120.93760.86811.02960.58661.43451.4502
GMI 1.04931.12161.16381.1621.20071.2431.25011.3411.24221.1873
AQI 1.41120.99510.98140.98891.03761.11221.05392.56492.45342.4251
SGI 0.82090.67140.55270.5270.50660.54170.60810.64290.8240.899
DEPI 1.30681.03990.97120.92120.90770.92380.95470.82560.76680.6884
SGAI 1.18281.25171.34481.45821.56641.55341.68581.81881.45511.387
LVGI 0.57780.64060.65190.67270.76760.86450.79391.12370.93511.0102
TATA 0.0134-0.0169-0.1057-0.0865-0.0816-0.082-0.044-0.04530.01580.0059
M-score -2.09-2.61-3.29-2.97-3.27-3.28-2.91-2.78-1.53-1.56
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