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Vitesse Semiconductor Corp (NAS:VTSS)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

VTSS' s 10-Year Beneish M-Score Range
Min: -12.99   Max: 6.52
Current: -2.86

-12.99
6.52

During the past 13 years, the highest Beneish M-Score of Vitesse Semiconductor Corp was 6.52. The lowest was -12.99. And the median was -3.01.


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 * 0.9678+0.528 * 1.0021+0.404 * 1.0473+0.892 * 1.0031+0.115 * 1.181
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0125+4.679 * -0.093-0.327 * 0.8586
=-2.86

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $10.1 Mil.
Revenue was 27.151 + 25.592 + 27.083 + 26.875 = $106.7 Mil.
Gross Profit was 14.897 + 14.613 + 16.407 + 14.122 = $60.0 Mil.
Total Current Assets was $95.1 Mil.
Total Assets was $103.2 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 $30.8 Mil.
Total Current Liabilities was $55.2 Mil.
Long-Term Debt was $16.3 Mil.
Net Income was -4.388 + -5.831 + -5.371 + -5.765 = $-21.4 Mil.
Non Operating Income was -0.018 + -0.032 + -1.655 + -0.034 = $-1.7 Mil.
Cash Flow from Operations was -3.039 + -0.04 + -4.523 + -2.416 = $-10.0 Mil.
Accounts Receivable was $10.4 Mil.
Revenue was 26.418 + 24.753 + 25.727 + 29.468 = $106.4 Mil.
Gross Profit was 14.752 + 13.384 + 14.752 + 17.089 = $60.0 Mil.
Total Current Assets was $96.8 Mil.
Total Assets was $104.6 Mil.
Property, Plant and Equipment(Net PPE) was $2.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.6 Mil.
Selling, General & Admin. Expense(SGA) was $30.3 Mil.
Total Current Liabilities was $32.2 Mil.
Long-Term Debt was $52.2 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)
=(10.101 / 106.701) / (10.404 / 106.366)
=0.0946664 / 0.09781321
=0.9678

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)
=(14.613 / 106.366) / (14.897 / 106.701)
=0.56387379 / 0.56268451
=1.0021

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 - (95.118 + 2.944) / 103.179) / (1 - (96.813 + 2.793) / 104.557)
=0.04959343 / 0.04735216
=1.0473

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
=106.701 / 106.366
=1.0031

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))
=(2.612 / (2.612 + 2.793)) / (2.039 / (2.039 + 2.944))
=0.48325624 / 0.40919125
=1.181

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)
=(30.782 / 106.701) / (30.308 / 106.366)
=0.28848839 / 0.28494068
=1.0125

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)
=((16.328 + 55.158) / 103.179) / ((52.166 + 32.201) / 104.557)
=0.69283478 / 0.80689959
=0.8586

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
=(-21.355 - -1.739 - -10.018) / 103.179
=-0.093

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 -2.86 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.74070.95660.13211.52930.85713.24781.05960.71641.15671.2009
GMI 0.83121.22581.17250.91370.91171.00150.93840.91871.01251.1133
AQI 0.95641.53221.12910.89591.09830.0631.17941.59571.17820.4955
SGI 1.39910.8721.06561.09181.02970.73590.9870.84920.84760.8685
DEPI 0.90761.05820.66861.16681.33751.15631.14570.7950.87011.0065
SGAI 0.69431.1070.90040.80021.15641.08120.94751.29070.85331.1664
LVGI 1.09880.85971.39821.30170.84832.73220.67421.25571.04260.6128
TATA -0.0678-0.2739-0.0788-0.08310.1173-2.0611-0.0846-0.1895-0.2303-0.1387
M-score -2.78-3.55-3.60-2.43-1.98-11.23-2.66-3.72-3.47-3.11

Vitesse Semiconductor Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.82691.09631.15671.06740.93281.09781.20091.3021.22440.9678
GMI 0.99951.01811.01251.00981.04771.0821.11331.08871.03111.0021
AQI 1.19421.11061.17820.82220.91780.61080.49550.75210.91411.0473
SGI 0.81290.7840.84760.86490.87450.88380.86850.91240.96131.0031
DEPI 0.76350.79580.87010.83870.84750.83931.00651.21491.23221.181
SGAI 1.17441.09040.85330.91760.91611.02461.16641.08711.08851.0125
LVGI 1.21681.21171.04260.81360.85340.58480.61280.76550.77110.8586
TATA -0.3643-0.3614-0.2303-0.1501-0.1622-0.1163-0.1387-0.1279-0.1509-0.093
M-score -4.56-4.33-3.47-3.25-3.38-3.04-3.11-2.85-2.95-2.86
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