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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-3.02 (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 -2.90 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: -3.02

-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 * 0.6788+0.528 * 0.924+0.404 * 0.9515+0.892 * 1.2142+0.115 * 0.7128
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8275+4.679 * -0.0536-0.327 * 1.0034
=-2.90

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $49.5 Mil.
Revenue was $477.0 Mil.
Gross Profit was $177.2 Mil.
Total Current Assets was $542.1 Mil.
Total Assets was $890.8 Mil.
Property, Plant and Equipment(Net PPE) was $79.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.9 Mil.
Selling, General & Admin. Expense(SGA) was $90.2 Mil.
Total Current Liabilities was $162.2 Mil.
Long-Term Debt was $1.2 Mil.
Net Income was $-32.0 Mil.
Non Operating Income was $0.0 Mil.
Cash Flow from Operations was $15.8 Mil.
Accounts Receivable was $60.1 Mil.
Revenue was $392.9 Mil.
Gross Profit was $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.



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)
=(49.524 / 477.038) / (60.085 / 392.873)
=0.10381563 / 0.15293746
=0.6788

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)
=(134.882 / 392.873) / (177.241 / 477.038)
=0.34332214 / 0.37154482
=0.924

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 - (542.135 + 79.59) / 890.789) / (1 - (555.662 + 78.752) / 929.455)
=0.30205133 / 0.31743441
=0.9515

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
=477.038 / 392.873
=1.2142

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))
=(24.573 / (24.573 + 78.752)) / (39.85 / (39.85 + 79.59))
=0.23782241 / 0.33364032
=0.7128

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)
=(90.188 / 477.038) / (89.76 / 392.873)
=0.18905831 / 0.22847078
=0.8275

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)
=((1.193 + 162.231) / 890.789) / ((1.533 + 168.408) / 929.455)
=0.18345983 / 0.18283941
=1.0034

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
=(-31.978 - 0 - 15.789) / 890.789
=-0.0536

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 -2.90 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 local exchange's 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
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