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Vitesse Semiconductor Corp (NAS:VTSS)
Beneish M-Score
-3.20 (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 -3.20 suggests that the company is not a manipulator.

VTSS' s 10-Year Beneish M-Score Range
Min: -12.99   Max: 6.52
Current: -3.2

-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 -2.98.


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 * 0.8752+0.528 * 0.9508+0.404 * 0.9028+0.892 * 1.0099+0.115 * 0.9173
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0049+4.679 * -0.1366-0.327 * 0.6961
=-3.20

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $10.1 Mil.
Revenue was 24.755 + 28.671 + 27.151 + 25.592 = $106.2 Mil.
Gross Profit was 14.702 + 18.1 + 14.897 + 14.613 = $62.3 Mil.
Total Current Assets was $61.3 Mil.
Total Assets was $67.5 Mil.
Property, Plant and Equipment(Net PPE) was $2.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General & Admin. Expense(SGA) was $30.5 Mil.
Total Current Liabilities was $23.8 Mil.
Long-Term Debt was $16.5 Mil.
Net Income was -5.041 + -2.485 + -4.388 + -5.831 = $-17.7 Mil.
Non Operating Income was -0.028 + -0.028 + -0.018 + -0.032 = $-0.1 Mil.
Cash Flow from Operations was -5.987 + 0.656 + -3.039 + -0.04 = $-8.4 Mil.
Accounts Receivable was $11.4 Mil.
Revenue was 27.083 + 26.875 + 26.418 + 24.753 = $105.1 Mil.
Gross Profit was 16.407 + 14.122 + 14.752 + 13.384 = $58.7 Mil.
Total Current Assets was $75.3 Mil.
Total Assets was $83.4 Mil.
Property, Plant and Equipment(Net PPE) was $3.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.2 Mil.
Selling, General & Admin. Expense(SGA) was $30.1 Mil.
Total Current Liabilities was $55.3 Mil.
Long-Term Debt was $16.2 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)
=(10.081 / 106.169) / (11.406 / 105.129)
=0.09495239 / 0.10849528
=0.8752

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)
=(18.1 / 105.129) / (14.702 / 106.169)
=0.55802871 / 0.58691332
=0.9508

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 - (61.309 + 2.913) / 67.544) / (1 - (75.251 + 3.559) / 83.351)
=0.04918275 / 0.05448045
=0.9028

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
=106.169 / 105.129
=1.0099

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))
=(2.185 / (2.185 + 3.559)) / (2.064 / (2.064 + 2.913))
=0.38039694 / 0.41470766
=0.9173

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)
=(30.542 / 106.169) / (30.094 / 105.129)
=0.28767343 / 0.28625784
=1.0049

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)
=((16.508 + 23.797) / 67.544) / ((16.163 + 55.293) / 83.351)
=0.59672214 / 0.85729025
=0.6961

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
=(-17.745 - -0.106 - -8.41) / 67.544
=-0.1366

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 -3.20 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.15671.06740.93281.09781.20091.3021.22440.96781.05820.8752
GMI 1.01251.00981.04771.0821.11331.08871.03111.00210.93110.9508
AQI 1.17820.82220.91780.61080.49550.75210.91411.04730.9410.9028
SGI 0.84760.86490.87450.88380.86850.91240.96131.00311.04551.0099
DEPI 0.87010.83870.84750.83931.00651.21491.23221.1811.03990.9173
SGAI 0.85330.91760.91611.02461.16641.08711.08851.01250.98091.0049
LVGI 1.04260.81360.85340.58480.61280.76550.77110.85860.83770.6961
TATA -0.2303-0.1501-0.1622-0.1163-0.1387-0.1279-0.1509-0.093-0.0896-0.1366
M-score -3.47-3.25-3.38-3.04-3.11-2.85-2.95-2.86-2.80-3.20
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