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Vitesse Semiconductor Corp (NAS:VTSS)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

VTSS' s 10-Year Beneish M-Score Range
Min: -12.55   Max: 6.52
Current: -2.95

-12.55
6.52

During the past 13 years, the highest Beneish M-Score of Vitesse Semiconductor Corp was 6.52. The lowest was -12.55. And the median was -3.05.


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 * 1.2244+0.528 * 1.0311+0.404 * 0.9141+0.892 * 0.9613+0.115 * 1.2322
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0885+4.679 * -0.1509-0.327 * 0.7711
=-2.95

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $9.9 Mil.
Revenue was 25.592 + 27.083 + 26.875 + 26.418 = $106.0 Mil.
Gross Profit was 14.613 + 16.407 + 14.122 + 14.752 = $59.9 Mil.
Total Current Assets was $71.5 Mil.
Total Assets was $80.0 Mil.
Property, Plant and Equipment(Net PPE) was $3.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General & Admin. Expense(SGA) was $30.7 Mil.
Total Current Liabilities was $55.9 Mil.
Long-Term Debt was $16.2 Mil.
Net Income was -5.831 + -5.371 + -5.765 + -6.434 = $-23.4 Mil.
Non Operating Income was -0.032 + -1.655 + -0.034 + -0.031 = $-1.8 Mil.
Cash Flow from Operations was -0.04 + -4.523 + -3.279 + -1.739 = $-9.6 Mil.
Accounts Receivable was $8.4 Mil.
Revenue was 24.753 + 25.727 + 29.468 + 30.287 = $110.2 Mil.
Gross Profit was 13.384 + 14.752 + 17.089 + 19.017 = $64.2 Mil.
Total Current Assets was $60.9 Mil.
Total Assets was $68.9 Mil.
Property, Plant and Equipment(Net PPE) was $3.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.8 Mil.
Selling, General & Admin. Expense(SGA) was $29.3 Mil.
Total Current Liabilities was $29.0 Mil.
Long-Term Debt was $51.5 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)
=(9.921 / 105.968) / (8.429 / 110.235)
=0.0936226 / 0.07646392
=1.2244

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)
=(16.407 / 110.235) / (14.613 / 105.968)
=0.58277317 / 0.56520836
=1.0311

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 - (71.536 + 3.308) / 79.998) / (1 - (60.873 + 3.126) / 68.852)
=0.06442661 / 0.07048452
=0.9141

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
=105.968 / 110.235
=0.9613

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))
=(2.798 / (2.798 + 3.126)) / (2.056 / (2.056 + 3.308))
=0.472316 / 0.38329605
=1.2322

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)
=(30.709 / 105.968) / (29.347 / 110.235)
=0.28979503 / 0.26622216
=1.0885

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)
=((16.243 + 55.896) / 79.998) / ((51.523 + 28.996) / 68.852)
=0.90176004 / 1.16945042
=0.7711

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
=(-23.401 - -1.752 - -9.581) / 79.998
=-0.1509

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 -2.95 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.92550.82691.09631.15671.06740.93281.09781.20091.3021.2244
GMI 0.95820.99951.01811.01251.00981.04771.0821.11331.08871.0311
AQI 1.65191.19421.11061.17820.82220.91780.61080.49550.75210.9141
SGI 0.82190.81290.7840.84760.86490.87450.88380.86850.91240.9613
DEPI 0.7790.76350.79580.87010.83870.84750.83931.00651.21491.2322
SGAI 1.24111.17441.09040.85330.91760.91611.02461.16641.08711.0885
LVGI 1.26661.21681.21171.04260.81360.85340.58480.61280.76550.7711
TATA -0.3414-0.3643-0.3614-0.2303-0.1501-0.1622-0.1245-0.1387-0.1279-0.1509
M-score -4.22-4.56-4.33-3.47-3.25-3.38-3.08-3.11-2.85-2.95
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