Market Cap : 213.33 M | Enterprise Value : 324.83 M | PE Ratio : | PB Ratio : 0.66 |
---|
NAS:AAOI has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NAS:AAOI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
During the past 11 years, the highest Beneish M-Score of Applied Optoelectronics was -1.61. The lowest was -3.05. And the median was -2.45.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Applied Optoelectronics's Beneish M-Score falls into.
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 Applied Optoelectronics 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 * 1.0104 | + | 0.528 * 1.1237 | + | 0.404 * 0.5947 | + | 0.892 * 1.2292 | + | 0.115 * 0.9889 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.8836 | + | 4.679 * -0.0306 | - | 0.327 * 1.0206 | |||||||
= | -2.50 |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
This Year (Dec20) TTM: | Last Year (Dec19) TTM: |
Accounts Receivable was $43.0 Mil. Revenue was 52.325 + 76.608 + 65.222 + 40.467 = $234.6 Mil. Gross Profit was 11.277 + 19.19 + 13.736 + 6.338 = $50.5 Mil. Total Current Assets was $209.2 Mil. Total Assets was $480.8 Mil. Property, Plant and Equipment(Net PPE) was $260.8 Mil. Depreciation, Depletion and Amortization(DDA) was $24.7 Mil. Selling, General, & Admin. Expense(SGA) was $56.0 Mil. Total Current Liabilities was $103.1 Mil. Long-Term Debt & Capital Lease Obligation was $99.8 Mil. Net Income was -13.439 + -9.616 + -18.6 + -16.797 = $-58.5 Mil. Non Operating Income was 0.022 + 0.019 + 0.098 + 0.151 = $0.3 Mil. Cash Flow from Operations was -14.104 + -6.136 + -15.523 + -8.246 = $-44.0 Mil. |
Accounts Receivable was $34.7 Mil. Revenue was 48.658 + 46.084 + 43.411 + 52.719 = $190.9 Mil. Gross Profit was 11.336 + 11.976 + 10.538 + 12.351 = $46.2 Mil. Total Current Assets was $192.8 Mil. Total Assets was $466.8 Mil. Property, Plant and Equipment(Net PPE) was $256.3 Mil. Depreciation, Depletion and Amortization(DDA) was $24.0 Mil. Selling, General, & Admin. Expense(SGA) was $51.5 Mil. Total Current Liabilities was $91.4 Mil. Long-Term Debt & Capital Lease Obligation was $101.7 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) |
= | (43.042 / 234.622) | / | (34.654 / 190.872) | |
= | 0.18345253 | / | 0.18155623 | |
= | 1.0104 |
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) | |
= | (46.201 / 190.872) | / | (50.541 / 234.622) | |
= | 0.24205227 | / | 0.21541458 | |
= | 1.1237 |
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 - (209.169 + 260.801) / 480.805) | / | (1 - (192.804 + 256.331) / 466.825) | |
= | 0.02253512 | / | 0.03789429 | |
= | 0.5947 |
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 | |
= | 234.622 | / | 190.872 | |
= | 1.2292 |
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)) |
= | (24.014 / (24.014 + 256.331)) | / | (24.733 / (24.733 + 260.801)) | |
= | 0.08565874 | / | 0.08662016 | |
= | 0.9889 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
= | (55.99 / 234.622) | / | (51.549 / 190.872) | |
= | 0.23863917 | / | 0.27007104 | |
= | 0.8836 |
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 in leverage
LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
= | ((99.766 + 103.148) / 480.805) | / | ((101.676 + 91.355) / 466.825) | |
= | 0.42202972 | / | 0.41349756 | |
= | 1.0206 |
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 | |
= | (-58.452 - 0.29 | - | -44.009) | / | 480.805 | |
= | -0.0306 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Applied Optoelectronics has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
No Headline