Switch to:
Zoltek Companies, Inc. (NAS:ZOLT)
Beneish M-Score
-3.02 (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.

Zoltek Companies, Inc. has a M-score of -3.02 suggests that the company is not a manipulator.

ZOLT' s 10-Year Beneish M-Score Range
Min: -3.8   Max: 15.95
Current: -3.02

-3.8
15.95

During the past 13 years, the highest Beneish M-Score of Zoltek Companies, Inc. was 15.95. The lowest was -3.80. And the median was -2.34.


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 Zoltek Companies, Inc. 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 * 1.0241+0.528 * 1.2726+0.404 * 0.7937+0.892 * 0.7975+0.115 * 0.9543
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3576+4.679 * -0.0963-0.327 * 0.7691
=-3.02

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $30.2 Mil.
Revenue was 35.123 + 40.958 + 30.31 + 33.306 = $139.7 Mil.
Gross Profit was 5.281 + 7.519 + 6.202 + 7.032 = $26.0 Mil.
Total Current Assets was $146.9 Mil.
Total Assets was $356.1 Mil.
Property, Plant and Equipment(Net PPE) was $208.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General & Admin. Expense(SGA) was $14.1 Mil.
Total Current Liabilities was $22.4 Mil.
Long-Term Debt was $17.6 Mil.
Net Income was -2.264 + -0.15 + -0.897 + 3.306 = $-0.0 Mil.
Non Operating Income was -1.817 + -1.449 + -1.211 + 1.72 = $-2.8 Mil.
Cash Flow from Operations was 13.222 + 12.041 + 4.577 + 7.209 = $37.0 Mil.
Accounts Receivable was $37.0 Mil.
Revenue was 35.877 + 44.199 + 48.078 + 47.014 = $175.2 Mil.
Gross Profit was 9.077 + 10.22 + 11.278 + 10.968 = $41.5 Mil.
Total Current Assets was $143.4 Mil.
Total Assets was $358.4 Mil.
Property, Plant and Equipment(Net PPE) was $214.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.1 Mil.
Selling, General & Admin. Expense(SGA) was $13.0 Mil.
Total Current Liabilities was $24.1 Mil.
Long-Term Debt was $28.2 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)
=(30.239 / 139.697) / (37.025 / 175.168)
=0.21646134 / 0.21136851
=1.0241

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)
=(7.519 / 175.168) / (5.281 / 139.697)
=0.2371609 / 0.18636048
=1.2726

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 - (146.929 + 208.727) / 356.051) / (1 - (143.356 + 214.592) / 358.449)
=0.00110939 / 0.00139769
=0.7937

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
=139.697 / 175.168
=0.7975

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))
=(18.075 / (18.075 + 214.592)) / (18.497 / (18.497 + 208.727))
=0.07768614 / 0.08140425
=0.9543

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)
=(14.119 / 139.697) / (13.041 / 175.168)
=0.10106874 / 0.07444853
=1.3576

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)
=((17.597 + 22.374) / 356.051) / ((28.173 + 24.146) / 358.449)
=0.11226201 / 0.1459594
=0.7691

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
=(-0.005 - -2.757 - 37.049) / 356.051
=-0.0963

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.

Zoltek Companies, Inc. has a M-score of -3.02 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.

Zoltek Companies, Inc. Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.09130.59610.91871.34940.92551.08470.88991.07860.94381.1106
GMI 0.98663.36530.19150.84231.04171.24892.13560.88670.47641.1533
AQI 1.2560.94280.51870.58710.23960.51290.60250.3646.21850.9862
SGI 1.0251.6041.66781.63371.23020.74750.92581.18081.22840.7537
DEPI 0.77360.68270.87051.69421.69270.90170.90190.868210.9599
SGAI 0.28440.83111.37290.74681.48761.13830.85910.74970.76141.4332
LVGI 1.14970.88770.85980.43851.15250.60280.6971.13231.45220.7908
TATA -0.0489-0.0805-0.08260.0094-0.0129-0.0409-0.0964-0.00790.019-0.0381
M-score -2.46-1.43-3.00-1.49-2.74-2.79-2.55-2.62-0.51-2.71

Zoltek Companies, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.07861.39041.16110.93890.94380.92270.80620.85891.11061.0241
GMI 0.88680.6270.49980.44720.47630.68130.86271.00491.15331.2726
AQI 0.3640.38031.9493.71316.21859.09882.32551.02290.98620.7937
SGI 1.18081.25221.22471.32641.22841.05610.91850.77560.75370.7975
DEPI 0.86820.84730.85390.853811.03220.96070.98150.95990.9543
SGAI 0.74970.7760.83490.75580.76140.89281.0281.27451.43321.3576
LVGI 1.13231.3941.41831.53091.45221.2870.98730.6330.79080.7691
TATA -0.00790.04730.04950.03270.01890.0276-0.0045-0.0193-0.0381-0.0963
M-score -2.62-2.23-1.91-1.44-0.510.66-2.29-2.82-2.71-3.02
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide