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Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-3.31 (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 -3.31 suggests that the company is not a manipulator.

VECO' s 10-Year Beneish M-Score Range
Min: -5.14   Max: 0.13
Current: -3.31

-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 * 1.1422+0.528 * 0.9315+0.404 * 1.1998+0.892 * 1.1097+0.115 * 0.7034
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9369+4.679 * -0.1804-0.327 * 1.7361
=-3.31

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $64.3 Mil.
Revenue was 98.341 + 113.569 + 93.341 + 95.122 = $400.4 Mil.
Gross Profit was 35.136 + 37.874 + 32.558 + 30.673 = $136.2 Mil.
Total Current Assets was $574.7 Mil.
Total Assets was $942.1 Mil.
Property, Plant and Equipment(Net PPE) was $80.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.5 Mil.
Selling, General & Admin. Expense(SGA) was $91.0 Mil.
Total Current Liabilities was $196.1 Mil.
Long-Term Debt was $1.5 Mil.
Net Income was -19.11 + -56.912 + -13.977 + -15.211 = $-105.2 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 4.288 + 48.669 + 10.176 + 1.625 = $64.8 Mil.
Accounts Receivable was $50.7 Mil.
Revenue was 90.841 + 73.209 + 99.324 + 97.435 = $360.8 Mil.
Gross Profit was 33.777 + 15.642 + 30.308 + 34.64 = $114.4 Mil.
Total Current Assets was $625.2 Mil.
Total Assets was $954.6 Mil.
Property, Plant and Equipment(Net PPE) was $86.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.3 Mil.
Selling, General & Admin. Expense(SGA) was $87.5 Mil.
Total Current Liabilities was $113.5 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)
=(64.285 / 400.373) / (50.72 / 360.809)
=0.16056278 / 0.14057299
=1.1422

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)
=(37.874 / 360.809) / (35.136 / 400.373)
=0.3169738 / 0.34028518
=0.9315

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 - (574.717 + 80.301) / 942.09) / (1 - (625.204 + 86.912) / 954.557)
=0.30471823 / 0.25398274
=1.1998

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
=400.373 / 360.809
=1.1097

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))
=(20.269 / (20.269 + 86.912)) / (29.526 / (29.526 + 80.301))
=0.18911001 / 0.268841
=0.7034

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)
=(90.975 / 400.373) / (87.505 / 360.809)
=0.22722561 / 0.24252444
=0.9369

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)
=((1.451 + 196.093) / 942.09) / ((1.771 + 113.522) / 954.557)
=0.20968697 / 0.12078168
=1.7361

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
=(-105.21 - 0 - 64.758) / 942.09
=-0.1804

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 -3.31 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.26120.93760.86811.02960.58661.43451.45021.69022.12971.1422
GMI 1.1621.20071.2431.25011.3411.24221.18731.0810.90560.9315
AQI 0.98891.03761.11221.05392.56492.45342.42512.1191.22731.1998
SGI 0.5270.50660.54170.60810.64290.8240.8990.96481.18421.1097
DEPI 0.92120.90770.92380.95470.82560.76680.68840.62820.72030.7034
SGAI 1.45821.56641.55341.68581.81881.45511.3871.22410.88660.9369
LVGI 0.67270.76760.86450.79391.12370.93511.01021.34311.33291.7361
TATA -0.0865-0.0816-0.082-0.044-0.04530.01580.0059-0.0226-0.1173-0.1804
M-score -2.97-3.27-3.28-2.91-2.78-1.53-1.56-1.68-1.90-3.31
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