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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-3.20 (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 -3.20 suggests that the company is not a manipulator.

VECO' s 10-Year Beneish M-Score Range
Min: -5.14   Max: 0.13
Current: -3.2

-5.14
0.13

During the past 13 years, the highest Beneish M-Score of Veeco Instruments Inc was 0.13. The lowest was -5.14. And the median was -2.51.


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 * 1.1697+0.528 * 0.8696+0.404 * 1.1549+0.892 * 1.218+0.115 * 0.6927
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8561+4.679 * -0.1752-0.327 * 1.7088
=-3.20

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was -8.386 + -19.11 + -56.912 + -13.977 = $-98.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 7.673 + 4.288 + 48.669 + 10.176 = $70.8 Mil.
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.



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)
=(83.098 / 436.661) / (58.323 / 358.496)
=0.19030323 / 0.16268801
=1.1697

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)
=(35.136 / 358.496) / (49.069 / 436.661)
=0.30795323 / 0.35413513
=0.8696

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 - (605.751 + 80.002) / 965.881) / (1 - (633.593 + 83.141) / 957.072)
=0.29002331 / 0.25111799
=1.1549

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
=436.661 / 358.496
=1.218

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))
=(22.04 / (22.04 + 83.141)) / (34.698 / (34.698 + 80.002))
=0.20954355 / 0.3025109
=0.6927

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)
=(93.449 / 436.661) / (89.617 / 358.496)
=0.21400812 / 0.24998047
=0.8561

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)
=((1.367 + 222.252) / 965.881) / ((1.694 + 127.974) / 957.072)
=0.23151817 / 0.13548406
=1.7088

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
=(-98.385 - 0 - 70.806) / 965.881
=-0.1752

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 -3.20 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

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.93760.86811.02960.58661.43451.45021.69022.12971.14221.1697
GMI 1.20071.2431.25011.3411.24221.18731.0810.90560.93150.8696
AQI 1.03761.11221.05392.56492.45342.42512.1191.22731.19981.1549
SGI 0.50660.54170.60810.64290.8240.8990.96481.18421.10971.218
DEPI 0.90770.92380.95470.82560.76680.68840.62820.72030.70340.6927
SGAI 1.56641.55341.68581.81881.45511.3871.22410.88660.93690.8561
LVGI 0.76760.86450.79391.12370.93511.01021.34311.33291.73611.7088
TATA -0.0816-0.082-0.044-0.04530.01580.0059-0.0226-0.1173-0.1804-0.1752
M-score -3.27-3.28-2.91-2.78-1.53-1.56-1.68-1.90-3.31-3.20
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