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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

VECO' s 10-Year Beneish M-Score Range
Min: -4.1   Max: -0.52
Current: -2.78

-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 -2.73.


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 * 0.5866+0.528 * 1.341+0.404 * 2.5649+0.892 * 0.6429+0.115 * 0.8256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8188+4.679 * -0.0453-0.327 * 1.1237
=-2.78

* 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 $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.
Net Income was -22.085 + -6.026 + -4.081 + -10.071 = $-42.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -3.883 + -9.141 + 3.265 + 10.486 = $0.7 Mil.
Accounts Receivable was $63.2 Mil.
Revenue was 106.849 + 132.715 + 136.547 + 139.909 = $516.0 Mil.
Gross Profit was 38.727 + 49.884 + 61.254 + 65.268 = $215.1 Mil.
Total Current Assets was $744.5 Mil.
Total Assets was $937.3 Mil.
Property, Plant and Equipment(Net PPE) was $98.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.2 Mil.
Selling, General & Admin. Expense(SGA) was $73.1 Mil.
Total Current Liabilities was $112.3 Mil.
Long-Term Debt was $2.1 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)
=(23.823 / 331.749) / (63.169 / 516.02)
=0.07181031 / 0.1224158
=0.5866

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)
=(30.308 / 516.02) / (15.642 / 331.749)
=0.41690826 / 0.31090373
=1.341

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 - (613.643 + 89.139) / 947.969) / (1 - (744.484 + 98.302) / 937.304)
=0.25864453 / 0.10084028
=2.5649

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
=331.749 / 516.02
=0.6429

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))
=(16.192 / (16.192 + 98.302)) / (18.425 / (18.425 + 89.139))
=0.14142226 / 0.17129337
=0.8256

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)
=(85.486 / 331.749) / (73.11 / 516.02)
=0.25768277 / 0.14168056
=1.8188

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)
=((1.847 + 128.191) / 947.969) / ((2.138 + 112.287) / 937.304)
=0.13717537 / 0.12207886
=1.1237

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
=(-42.263 - 0 - 0.727) / 947.969
=-0.0453

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 -2.78 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.

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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.61510.60161.17021.10690.94771.26120.93760.86811.02960.5866
GMI 0.91620.99141.04931.12161.16381.1621.20071.2431.25011.341
AQI 1.3811.40811.41120.99510.98140.98891.03761.11221.05392.5649
SGI 1.4451.04950.82090.67140.55270.5270.50660.54170.60810.6429
DEPI 1.50551.55941.30681.03990.97120.92120.90770.92380.95470.8256
SGAI 0.86191.01271.18281.25171.34481.45821.56641.55341.68581.8188
LVGI 0.4980.5410.57780.64060.65190.67270.76760.86450.79391.1237
TATA 0.25880.0170.0134-0.0169-0.1057-0.0865-0.0816-0.082-0.044-0.0453
M-score -0.87-2.35-2.09-2.61-3.29-2.97-3.27-3.28-2.91-2.78
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