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Vitesse Semiconductor Corp (NAS:VTSS)
Beneish M-Score
-2.80 (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.

Vitesse Semiconductor Corp has a M-score of -2.80 suggests that the company is not a manipulator.

VTSS' s 10-Year Beneish M-Score Range
Min: -11.23   Max: 6.52
Current: -2.8

-11.23
6.52

During the past 13 years, the highest Beneish M-Score of Vitesse Semiconductor Corp was 6.52. The lowest was -11.23. And the median was -3.11.


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 Vitesse Semiconductor Corp 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 * 1.0582+0.528 * 0.9311+0.404 * 0.941+0.892 * 1.0455+0.115 * 1.0399
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9809+4.679 * -0.0896-0.327 * 0.8377
=-2.80

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $10.9 Mil.
Revenue was 28.671 + 27.151 + 25.592 + 27.083 = $108.5 Mil.
Gross Profit was 18.1 + 14.897 + 14.613 + 16.407 = $64.0 Mil.
Total Current Assets was $97.4 Mil.
Total Assets was $104.8 Mil.
Property, Plant and Equipment(Net PPE) was $2.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.0 Mil.
Selling, General & Admin. Expense(SGA) was $31.0 Mil.
Total Current Liabilities was $56.9 Mil.
Long-Term Debt was $16.4 Mil.
Net Income was -2.485 + -4.388 + -5.831 + -5.371 = $-18.1 Mil.
Non Operating Income was -0.028 + -0.018 + -0.032 + -1.655 = $-1.7 Mil.
Cash Flow from Operations was 0.656 + -3.039 + -0.04 + -4.523 = $-6.9 Mil.
Accounts Receivable was $9.8 Mil.
Revenue was 26.875 + 26.418 + 24.753 + 25.727 = $103.8 Mil.
Gross Profit was 14.122 + 14.752 + 13.384 + 14.752 = $57.0 Mil.
Total Current Assets was $91.3 Mil.
Total Assets was $99.0 Mil.
Property, Plant and Equipment(Net PPE) was $3.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.4 Mil.
Selling, General & Admin. Expense(SGA) was $30.2 Mil.
Total Current Liabilities was $21.9 Mil.
Long-Term Debt was $60.8 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)
=(10.85 / 108.497) / (9.807 / 103.773)
=0.10000277 / 0.09450435
=1.0582

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)
=(14.897 / 103.773) / (18.1 / 108.497)
=0.54937219 / 0.59003475
=0.9311

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 - (97.386 + 2.858) / 104.824) / (1 - (91.259 + 3.107) / 98.961)
=0.04369228 / 0.04643243
=0.941

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
=108.497 / 103.773
=1.0455

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))
=(2.375 / (2.375 + 3.107)) / (2.041 / (2.041 + 2.858))
=0.43323605 / 0.41661564
=1.0399

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)
=(30.981 / 108.497) / (30.21 / 103.773)
=0.28554707 / 0.29111619
=0.9809

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)
=((16.417 + 56.915) / 104.824) / ((60.75 + 21.896) / 98.961)
=0.69957262 / 0.83513707
=0.8377

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
=(-18.075 - -1.733 - -6.946) / 104.824
=-0.0896

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.

Vitesse Semiconductor Corp has a M-score of -2.80 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.

Vitesse Semiconductor Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.95660.13211.52930.85713.24781.05960.71641.15671.20091.0582
GMI 1.22581.17250.91370.91171.00150.93840.91871.01251.11330.9311
AQI 1.53221.12910.89591.09830.0631.17941.59571.17820.49550.941
SGI 0.8721.06561.09181.02970.73590.9870.84920.84760.86851.0455
DEPI 1.05820.66861.16681.33751.15631.14570.7950.87011.00651.0399
SGAI 1.1070.90040.80021.15641.08120.94751.29070.85331.16640.9809
LVGI 0.85971.39821.30170.84832.73220.67421.25571.04260.61280.8377
TATA -0.2739-0.0788-0.08310.1173-2.0611-0.0846-0.1895-0.2303-0.1387-0.0896
M-score -3.55-3.60-2.43-1.98-11.23-2.66-3.72-3.47-3.11-2.80

Vitesse Semiconductor Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.09631.15671.06740.93281.09781.20091.3021.22440.96781.0582
GMI 1.01811.01251.00981.04771.0821.11331.08871.03111.00210.9311
AQI 1.11061.17820.82220.91780.61080.49550.75210.91411.04730.941
SGI 0.7840.84760.86490.87450.88380.86850.91240.96131.00311.0455
DEPI 0.79580.87010.83870.84750.83931.00651.21491.23221.1811.0399
SGAI 1.09040.85330.91760.91611.02461.16641.08711.08851.01250.9809
LVGI 1.21171.04260.81360.85340.58480.61280.76550.77110.85860.8377
TATA -0.3614-0.2303-0.1501-0.1622-0.1163-0.1387-0.1279-0.1509-0.093-0.0896
M-score -4.33-3.47-3.25-3.38-3.04-3.11-2.85-2.95-2.86-2.80
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