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Micron Technology Inc  (NAS:MU) Beneish M-Score: -2.23 (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.

Micron Technology Inc has a M-score of -2.23 suggests that the company is not a manipulator.

NAS:MU' s Beneish M-Score Range Over the Past 10 Years
Min: -14.31   Max: 4.67
Current: -2.23

-14.31
4.67

During the past 13 years, the highest Beneish M-Score of Micron Technology Inc was 4.67. The lowest was -14.31. And the median was -2.82.


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.

Micron Technology Inc Annual Data

Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.03 -2.69 -2.89 -3.15 -2.23

Micron Technology Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 -2.90 -2.65 -2.52 -2.23

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 Micron Technology 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 * 1.2994+0.528 * 0.4867+0.404 * 0.8+0.892 * 1.639+0.115 * 1.3414
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6879+4.679 * -0.0835-0.327 * 0.8472
=-2.23

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

This Year (Aug17) TTM:Last Year (Aug16) TTM:
Accounts Receivable was $3,759 Mil.
Revenue was 6138 + 5566 + 4648 + 3970 = $20,322 Mil.
Gross Profit was 3112 + 2609 + 1704 + 1011 = $8,436 Mil.
Total Current Assets was $12,457 Mil.
Total Assets was $35,336 Mil.
Property, Plant and Equipment(Net PPE) was $19,431 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,795 Mil.
Selling, General, & Admin. Expense(SGA) was $743 Mil.
Total Current Liabilities was $5,334 Mil.
Long-Term Debt & Capital Lease Obligation was $9,872 Mil.
Net Income was 2368 + 1647 + 894 + 180 = $5,089 Mil.
Non-Recurring Items was -49 + -83 + 34 + -14 = $-112 Mil.
Cash Flow from Operations was 3203 + 2407 + 1405 + 1138 = $8,153 Mil.
Accounts Receivable was $1,765 Mil.
Revenue was 3217 + 2898 + 2934 + 3350 = $12,399 Mil.
Gross Profit was 579 + 498 + 579 + 849 = $2,505 Mil.
Total Current Assets was $9,495 Mil.
Total Assets was $27,540 Mil.
Property, Plant and Equipment(Net PPE) was $14,686 Mil.
(DDA) was $2,980 Mil.
Selling, General, & Admin. Expense(SGA) was $659 Mil.
Total Current Liabilities was $4,835 Mil.
Long-Term Debt & Capital Lease Obligation was $9,154 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)
=(3759 / 20322) / (1765 / 12399)
=0.18497195 / 0.14235019
=1.2994

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)
=(2505 / 12399) / (8436 / 20322)
=0.20203242 / 0.41511662
=0.4867

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 - (12457 + 19431) / 35336) / (1 - (9495 + 14686) / 27540)
=0.09757754 / 0.12196805
=0.8

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
=20322 / 12399
=1.639

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))
=(2980 / (2980 + 14686)) / (2795 / (2795 + 19431))
=0.16868561 / 0.12575362
=1.3414

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)
=(743 / 20322) / (659 / 12399)
=0.03656136 / 0.05314945
=0.6879

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)
=((9872 + 5334) / 35336) / ((9154 + 4835) / 27540)
=0.43032601 / 0.50795207
=0.8472

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
=(5089 - -112 - 8153) / 35336
=-0.0835

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.

Micron Technology Inc has a M-score of -2.23 suggests that the company will not be a manipulator.

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