Switch to:
Forward Air Corp  (NAS:FWRD) Beneish M-Score: -2.69 (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.

Forward Air Corp has a M-score of -2.69 suggests that the company is not a manipulator.

NAS:FWRD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56   Max: 47.04
Current: -2.69

-3.56
47.04

During the past 13 years, the highest Beneish M-Score of Forward Air Corp was 47.04. The lowest was -3.56. And the median was -2.58.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Forward Air Corp Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.57 -2.55 -2.29 -2.96 -3.05

Forward Air Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.15 -3.06 -3.05 -3.01 -2.69

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Forward Air 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 * 1.0679+0.528 * 1.0124+0.404 * 1.0752+0.892 * 1.0588+0.115 * 0.9741
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9931+4.679 * -0.0953-0.327 * 0.7269
=-2.69

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun17) TTM:Last Year (Jun16) TTM:
Accounts Receivable was $124 Mil.
Revenue was 267.518 + 246.982 + 264.793 + 249.552 = $1,029 Mil.
Gross Profit was 148.238 + 118.812 + 126.376 + 117.712 = $511 Mil.
Total Current Assets was $148 Mil.
Total Assets was $660 Mil.
Property, Plant and Equipment(Net PPE) was $190 Mil.
Depreciation, Depletion and Amortization(DDA) was $39 Mil.
Selling, General, & Admin. Expense(SGA) was $275 Mil.
Total Current Liabilities was $55 Mil.
Long-Term Debt & Capital Lease Obligation was $21 Mil.
Net Income was 19.55 + 14.243 + 12.706 + 11.931 = $58 Mil.
Non-Recurring Items was 0.018 + -0.026 + 0.153 + -0.004 = $0 Mil.
Cash Flow from Operations was 14.921 + 37.06 + 35.742 + 33.402 = $121 Mil.
Accounts Receivable was $109 Mil.
Revenue was 238.637 + 229.549 + 256.42 + 247.093 = $972 Mil.
Gross Profit was 136.371 + 110.849 + 124.916 + 116.6 = $489 Mil.
Total Current Assets was $164 Mil.
Total Assets was $644 Mil.
Property, Plant and Equipment(Net PPE) was $188 Mil.
(DDA) was $38 Mil.
Selling, General, & Admin. Expense(SGA) was $262 Mil.
Total Current Liabilities was $101 Mil.
Long-Term Debt & Capital Lease Obligation was $1 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(123.535 / 1028.845) / (109.256 / 971.699)
=0.12007154 / 0.11243811
=1.0679

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)
=(488.736 / 971.699) / (511.138 / 1028.845)
=0.50297057 / 0.49680759
=1.0124

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (148.151 + 189.559) / 659.687) / (1 - (163.631 + 188.256) / 644.427)
=0.48807541 / 0.45395367
=1.0752

4. SGI = Sales Growth Index

Ratio of Revenue 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
=1028.845 / 971.699
=1.0588

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(37.964 / (37.964 + 188.256)) / (39.453 / (39.453 + 189.559))
=0.16781894 / 0.17227482
=0.9741

6. SGAI = Sales, General and Administrative expenses Index

The ratio of c 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)
=(275.232 / 1028.845) / (261.759 / 971.699)
=0.26751551 / 0.2693828
=0.9931

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)
=((20.983 + 54.654) / 659.687) / ((0.909 + 100.738) / 644.427)
=0.11465589 / 0.15773237
=0.7269

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
=(58.43 - 0.141 - 121.125) / 659.687
=-0.0953

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.

Forward Air Corp has a M-score of -2.69 suggests that the company will not be a manipulator.


Headlines

No Headline

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)

GF Chat

{{numOfNotice}}
FEEDBACK