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Telular Corporation (NAS:WRLS)
Beneish M-Score
0.00 (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.

Telular Corporation has a M-score of -2.20 signals that the company is a manipulator.

WRLS' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Telular Corporation was 0.00. The lowest was 0.00. And the median was 0.00.


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 Telular Corporation 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 * 0.8397+0.528 * 1.0143+0.404 * 0.9357+0.892 * 1.6145+0.115 * 0.7172
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0493+4.679 * -0.0212-0.327 * 0.8914
=-2.20

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

This Year (Mar13) TTM:Last Year (Mar12) TTM:
Accounts Receivable was $14.19 Mil.
Revenue was 24.793 + 24.782 + 23.449 + 22.899 = $95.92 Mil.
Gross Profit was 13.067 + 12.423 + 12.527 + 12.125 = $50.14 Mil.
Total Current Assets was $32.54 Mil.
Total Assets was $110.36 Mil.
Property, Plant and Equipment(Net PPE) was $4.25 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.86 Mil.
Selling, General & Admin. Expense(SGA) was $28.53 Mil.
Total Current Liabilities was $15.59 Mil.
Long-Term Debt was $20.89 Mil.
Net Income was 1.854 + 2.197 + 1.621 + 1.482 = $7.15 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2.588 + -1.04 + 4.087 + 3.862 = $9.50 Mil.
Accounts Receivable was $10.47 Mil.
Revenue was 19.794 + 13.705 + 13.092 + 12.824 = $59.42 Mil.
Gross Profit was 10.426 + 7.514 + 6.594 + 6.969 = $31.50 Mil.
Total Current Assets was $28.71 Mil.
Total Assets was $111.81 Mil.
Property, Plant and Equipment(Net PPE) was $3.44 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.00 Mil.
Selling, General & Admin. Expense(SGA) was $16.84 Mil.
Total Current Liabilities was $14.46 Mil.
Long-Term Debt was $27.00 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)
=(14.188 / 95.923) / (10.466 / 59.415)
=0.1479103 / 0.1761508
=0.8397

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)
=(12.423 / 59.415) / (13.067 / 95.923)
=0.53021964 / 0.52273177
=1.0143

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 - (32.544 + 4.246) / 110.36) / (1 - (28.71 + 3.444) / 111.811)
=0.66663646 / 0.71242543
=0.9357

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
=95.923 / 59.415
=1.6145

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))
=(3.002 / (3.002 + 3.444)) / (7.862 / (7.862 + 4.246))
=0.46571517 / 0.64932276
=0.7172

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)
=(28.532 / 95.923) / (16.843 / 59.415)
=0.29744691 / 0.2834806
=1.0493

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)
=((20.888 + 15.588) / 110.36) / ((27 + 14.46) / 111.811)
=0.3305183 / 0.3708043
=0.8914

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
=(7.154 - 0 - 9.497) / 110.36
=-0.0212

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.

Telular Corporation has a M-score of -2.20 signals that the company is likely to 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.

Telular Corporation Annual Data

Sep03Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12
DSRI 0.80721.27861.25261.29290.96670.39421.54080.92660.77871.3195
GMI 1.00061.00551.35761.03720.57850.9240.92250.95290.8470.9337
AQI 1.97470.86540.9071.43260.36141.06432.53414.24811.32041.0571
SGI 1.07331.20620.69031.77550.80030.88790.71341.00341.06641.5812
DEPI 1.02640.88660.97610.95941.22921.37610.76360.94810.78810.684
SGAI 0.9820.84931.51250.68260.93171.17541.25580.98821.10681.0937
LVGI 0.72530.99460.94021.99550.93930.52460.74760.61871.38863.5536
TATA 0.03680.0224-0.11090.101-0.1638-0.2348-0.17620.334-0.1508-0.0605
M-score -1.93-1.97-2.96-1.13-3.88-4.08-2.470.43-3.45-2.85

Telular Corporation Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
DSRI 1.13460.85680.91890.77870.66551.75111.2631.31951.21170.8397
GMI 0.91030.88290.8760.8470.84370.86190.91040.93370.99461.0143
AQI 5.59616.60416.25931.32041.04021.05851.07371.05711.08080.9357
SGI 0.93890.97111.03691.06641.12261.24931.40721.58121.74471.6145
DEPI 0.95660.91620.82420.78810.7480.79490.73560.6840.70150.7172
SGAI 1.14591.14941.11751.10680.96881.01571.06411.09371.13141.0493
LVGI 0.5860.76170.89471.38861.39623.62723.53733.55363.52120.8914
TATA 0.46240.37220.3687-0.1508-0.1753-0.0437-0.0648-0.0605-0.0234-0.0212
M-score 1.671.351.26-3.45-3.72-2.71-3.07-2.85-2.58-2.20
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