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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-1.90 (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 -1.90 signals that the company is a manipulator.

VECO' s 10-Year Beneish M-Score Range
Min: -4.1   Max: -0.52
Current: -1.9

-4.1
-0.52

During the past 13 years, the highest Beneish M-Score of Veeco Instruments Inc was -0.52. The lowest was -4.10. 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 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 * 2.1297+0.528 * 0.9056+0.404 * 1.2273+0.892 * 1.1842+0.115 * 0.7203
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8866+4.679 * -0.1173-0.327 * 1.3329
=-1.90

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $60.1 Mil.
Revenue was 113.569 + 93.341 + 95.122 + 90.841 = $392.9 Mil.
Gross Profit was 37.874 + 32.558 + 30.673 + 33.777 = $134.9 Mil.
Total Current Assets was $555.7 Mil.
Total Assets was $929.5 Mil.
Property, Plant and Equipment(Net PPE) was $78.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.6 Mil.
Selling, General & Admin. Expense(SGA) was $89.8 Mil.
Total Current Liabilities was $168.4 Mil.
Long-Term Debt was $1.5 Mil.
Net Income was -56.912 + -13.977 + -15.211 + 19.16 = $-66.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 48.669 + 10.176 + 1.625 + -18.401 = $42.1 Mil.
Accounts Receivable was $23.8 Mil.
Revenue was 73.209 + 99.324 + 97.435 + 61.781 = $331.7 Mil.
Gross Profit was 15.642 + 30.308 + 34.64 + 22.552 = $103.1 Mil.
Total Current Assets was $613.6 Mil.
Total Assets was $948.0 Mil.
Property, Plant and Equipment(Net PPE) was $89.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.4 Mil.
Selling, General & Admin. Expense(SGA) was $85.5 Mil.
Total Current Liabilities was $128.2 Mil.
Long-Term Debt was $1.8 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)
=(60.085 / 392.873) / (23.823 / 331.749)
=0.15293746 / 0.07181031
=2.1297

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)
=(32.558 / 331.749) / (37.874 / 392.873)
=0.31090373 / 0.34332214
=0.9056

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 - (555.662 + 78.752) / 929.455) / (1 - (613.643 + 89.139) / 947.969)
=0.31743441 / 0.25864453
=1.2273

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
=392.873 / 331.749
=1.1842

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))
=(18.425 / (18.425 + 89.139)) / (24.573 / (24.573 + 78.752))
=0.17129337 / 0.23782241
=0.7203

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)
=(89.76 / 392.873) / (85.486 / 331.749)
=0.22847078 / 0.25768277
=0.8866

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)
=((1.533 + 168.408) / 929.455) / ((1.847 + 128.191) / 947.969)
=0.18283941 / 0.13717537
=1.3329

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
=(-66.94 - 0 - 42.069) / 929.455
=-0.1173

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 -1.90 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.98860.90250.95180.7211.77520.67610.60031.26120.58662.1297
GMI 0.91580.96431.12470.98131.01250.81570.99671.1621.3410.9056
AQI 0.95570.8961.05230.75260.75330.42061.40810.98892.56491.2273
SGI 1.05061.07520.91261.10020.63783.29621.05180.5270.64291.1842
DEPI 0.99711.03061.05890.97781.18471.16521.55940.92120.82560.7203
SGAI 0.97671.02281.07060.92761.04970.42591.03661.45821.81880.8866
LVGI 0.99370.92270.91980.97420.86560.84580.5410.67271.12371.3329
TATA -0.0802-0.0543-0.1074-0.2868-0.12320.14590.017-0.0865-0.0453-0.1173
M-score -2.88-2.79-3.00-4.08-2.70-0.21-2.35-2.97-2.78-1.90

Veeco Instruments Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.94771.26120.93760.86811.02960.58661.43451.45021.69022.1297
GMI 1.16381.1621.20071.2431.25011.3411.24221.18731.0810.9056
AQI 0.98140.98891.03761.11221.05392.56492.45342.42512.1191.2273
SGI 0.55270.5270.50660.54170.60810.64290.8240.8990.96481.1842
DEPI 0.97120.92120.90770.92380.95470.82560.76680.68840.62820.7203
SGAI 1.34481.45821.56641.55341.68581.81881.45511.3871.22410.8866
LVGI 0.65190.67270.76760.86450.79391.12370.93511.01021.34311.3329
TATA -0.1057-0.0865-0.0816-0.082-0.044-0.04530.01580.0059-0.0226-0.1173
M-score -3.29-2.97-3.27-3.28-2.91-2.78-1.53-1.56-1.68-1.90
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