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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-3.05 (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 -3.05 suggests that the company is not a manipulator.

VECO' s Beneish M-Score Range Over the Past 10 Years
Min: -5.15   Max: 0.22
Current: -3.05

-5.15
0.22

During the past 13 years, the highest Beneish M-Score of Veeco Instruments Inc was 0.22. The lowest was -5.15. And the median was -2.62.


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 * 0.5469+0.528 * 0.907+0.404 * 1.089+0.892 * 0.9175+0.115 * 0.8405
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9654+4.679 * -0.0303-0.327 * 0.7265
=-3.05

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $41.7 Mil.
Revenue was 75.348 + 78.011 + 106.544 + 140.744 = $400.6 Mil.
Gross Profit was 31.439 + 31.956 + 38.785 + 54.25 = $156.4 Mil.
Total Current Assets was $497.4 Mil.
Total Assets was $819.2 Mil.
Property, Plant and Equipment(Net PPE) was $63.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.4 Mil.
Selling, General & Admin. Expense(SGA) was $82.8 Mil.
Total Current Liabilities was $136.8 Mil.
Long-Term Debt was $1.0 Mil.
Net Income was -32.082 + -15.533 + -9.787 + 5.306 = $-52.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -12.333 + -18.798 + -6.061 + 9.889 = $-27.3 Mil.
Accounts Receivable was $83.1 Mil.
Revenue was 131.41 + 98.341 + 113.569 + 93.341 = $436.7 Mil.
Gross Profit was 49.069 + 35.136 + 37.874 + 32.558 = $154.6 Mil.
Total Current Assets was $605.8 Mil.
Total Assets was $965.9 Mil.
Property, Plant and Equipment(Net PPE) was $80.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.7 Mil.
Selling, General & Admin. Expense(SGA) was $93.4 Mil.
Total Current Liabilities was $222.3 Mil.
Long-Term Debt was $1.4 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)
=(41.695 / 400.647) / (83.098 / 436.661)
=0.10406917 / 0.19030323
=0.5469

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)
=(154.637 / 436.661) / (156.43 / 400.647)
=0.35413513 / 0.39044346
=0.907

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 - (497.441 + 62.981) / 819.15) / (1 - (605.751 + 80.002) / 965.881)
=0.31584936 / 0.29002331
=1.089

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
=400.647 / 436.661
=0.9175

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))
=(34.698 / (34.698 + 80.002)) / (35.416 / (35.416 + 62.981))
=0.3025109 / 0.35992967
=0.8405

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)
=(82.774 / 400.647) / (93.449 / 436.661)
=0.20660082 / 0.21400812
=0.9654

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)
=((1.013 + 136.757) / 819.15) / ((1.367 + 222.252) / 965.881)
=0.16818653 / 0.23151817
=0.7265

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
=(-52.096 - 0 - -27.303) / 819.15
=-0.0303

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 -3.05 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.90250.95180.7211.77520.67610.60031.26120.58662.12970.6788
GMI 0.96431.12470.98131.01250.81570.99671.1621.3410.90560.924
AQI 0.8961.05230.75260.75330.42061.40810.98892.56491.22730.9515
SGI 1.07520.91261.10020.63783.29621.05180.5270.64291.18421.2142
DEPI 1.03061.05890.97781.18471.16521.55940.92120.82560.72030.7128
SGAI 1.02281.07060.92761.04970.42591.03661.45821.81880.88660.8275
LVGI 0.92270.91980.97420.86560.84580.5410.67271.12371.33291.0034
TATA -0.0533-0.1082-0.2868-0.12320.14590.017-0.0865-0.0453-0.1173-0.0536
M-score -2.79-3.00-4.08-2.70-0.21-2.35-2.97-2.78-1.90-2.90

Veeco Instruments Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.43451.45021.69022.12971.14221.16970.55340.67880.76490.5469
GMI 1.24221.18731.0810.90560.93150.86960.87730.9240.89290.907
AQI 2.45342.42512.1191.22731.19981.15491.31350.95151.00551.089
SGI 0.8240.8990.96481.18421.10971.2181.37321.21421.14070.9175
DEPI 0.76680.68840.62820.72030.70340.69270.71870.71280.84060.8405
SGAI 1.45511.3871.22410.88660.93690.85610.74380.82750.83970.9654
LVGI 0.93511.01021.34311.33291.73611.70881.22051.00340.87540.7265
TATA 0.01580.0059-0.0226-0.1173-0.1804-0.1752-0.1629-0.0536-0.0245-0.0303
M-score -1.53-1.56-1.68-1.90-3.31-3.20-3.32-2.90-2.69-3.05
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