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Motorcar Parts of America Beneish M-Score

: -2.04 (As of Today)
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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 -2.04 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Motorcar Parts of America's Beneish M-Score or its related term are showing as below:

MPAA' s Beneish M-Score Range Over the Past 10 Years
Min: -7.17   Med: -1.93   Max: 21.62
Current: -2.04

During the past 13 years, the highest Beneish M-Score of Motorcar Parts of America was 21.62. The lowest was -7.17. And the median was -1.93.


Motorcar Parts of America Beneish M-Score Historical Data

The historical data trend for Motorcar Parts of America's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Motorcar Parts of America Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.13 -2.28 -2.30 -2.88 -2.00

Motorcar Parts of America Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.61 -2.44 -1.93 -2.00 -2.04

Competitive Comparison

For the Auto Parts subindustry, Motorcar Parts of America's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

   

Motorcar Parts of America Beneish M-Score Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcar Parts of America's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Motorcar Parts of America's Beneish M-Score falls into.



Motorcar Parts of America Beneish M-Score 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 Motorcar Parts of America 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 * 1.1221+0.528 * 1.0746+0.404 * 0.9603+0.892 * 1.1191+0.115 * 0.8495
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9882+4.679 * 0.0489-0.327 * 1.0446
=-2.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $100.8 Mil.
Revenue was 163.985 + 163.916 + 161.81 + 175.548 = $665.3 Mil.
Gross Profit was 30.302 + 25.768 + 32.575 + 35.951 = $124.6 Mil.
Total Current Assets was $528.9 Mil.
Total Assets was $1,000.4 Mil.
Property, Plant and Equipment(Net PPE) was $129.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.9 Mil.
Selling, General, & Admin. Expense(SGA) was $81.7 Mil.
Total Current Liabilities was $413.9 Mil.
Long-Term Debt & Capital Lease Obligation was $91.6 Mil.
Net Income was -0.175 + -0.322 + 3.139 + 3.683 = $6.3 Mil.
Non Operating Income was -0.678 + 3.442 + -0.385 + -3.917 = $-1.5 Mil.
Cash Flow from Operations was -0.982 + -22.688 + 2.165 + -19.6 = $-41.1 Mil.
Total Receivables was $80.3 Mil.
Revenue was 149.034 + 168.128 + 122.568 + 154.73 = $594.5 Mil.
Gross Profit was 23.571 + 32.107 + 24.241 + 39.726 = $119.6 Mil.
Total Current Assets was $441.0 Mil.
Total Assets was $903.9 Mil.
Property, Plant and Equipment(Net PPE) was $141.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.7 Mil.
Selling, General, & Admin. Expense(SGA) was $73.8 Mil.
Total Current Liabilities was $335.6 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 Total 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)
=(100.813 / 665.259) / (80.283 / 594.46)
=0.15153948 / 0.13505198
=1.1221

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)
=(119.645 / 594.46) / (124.596 / 665.259)
=0.2012667 / 0.18728946
=1.0746

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 - (528.935 + 129.541) / 1000.426) / (1 - (440.981 + 141.211) / 903.94)
=0.34180439 / 0.35593955
=0.9603

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
=665.259 / 594.46
=1.1191

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))
=(11.738 / (11.738 + 141.211)) / (12.865 / (12.865 + 129.541))
=0.07674454 / 0.09034029
=0.8495

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)
=(81.654 / 665.259) / (73.838 / 594.46)
=0.12274017 / 0.12421021
=0.9882

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)
=((91.649 + 413.858) / 1000.426) / ((101.693 + 335.578) / 903.94)
=0.50529175 / 0.48373896
=1.0446

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
=(6.325 - -1.538 - -41.105) / 1000.426
=0.0489

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.

Motorcar Parts of America has a M-score of -2.04 suggests that the company is unlikely to be a manipulator.


Motorcar Parts of America Beneish M-Score Related Terms

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Motorcar Parts of America Business Description

Motorcar Parts of America logo
Traded in Other Exchanges
Address
2929 California Street, Torrance, CA, USA, 90503
Motorcar Parts of America Inc is a US-based manufacturer, remanufacturer, and distributor of aftermarket automotive and light truck applications. It manufactures and distributes heavy-duty truck and industrial and agricultural application parts. It produces starter engines, alternators, hub assemblies, bearings, and master cylinders. The company supplies its products to the automotive aftermarket either under its own brands, as part of a private-label service, or to warranty replacement programs of automobile manufacturers. It primarily sells rotating electrical products, wheel hub products, brake master cylinders products in the US, of which a majority of the revenue is derived from the sales of rotating electrical products.
Executives
Warfield Patricia W director 2929 CALIFORNIA STREET TORRANCE CA 90503
Rankin Jamy P. director C/O MOTOR CAR PARTS OF AMERICA, INC. 2929 CALIFORNIA STREET TORRANCE CA 90503
Shah Kamlesh officer: Chief Accounting Officer C/O MOTORCAR PARTS OF AMERICA, INC. 2929 CALIFORNIA STREET TORRANCE CA 90503
Stone Juliet Lynn officer: VP, Gen Counsel and Secretary C/O MOTORCAR PARTS OF AMERICA, INC. 2020 CALIFORNIA STREET TORRANCE CA 90503
Vargo Timothy D director 700 KEOUGH DRIVE PIPERTON TN 38017
Whittaker Barbara L director 1594 HERONWOOD COURT BLOOMFIELD HILLS MI 48302
Ferguson Joseph Edwin director 5103 SOUTH GARTH AVENUE LOS ANGELES CA 90056
Bryan David director 605 STAPP ROAD BOULDER CREEK CA 95006
Schooner Douglas Earl officer: Vice President, Manufacturing 2929 CALIFORNIA STREET TORRANCE CA 90503
Borneo Rudolph J director 50 O'FARRELL STREET SAN FRANCISCO CA 94108
Gay Philip director 6300 CANOGA AVENUE SUITE 1700 WOODLAND HILLS CA 91367
Lee David Sung officer: CFO 2929 CALIFORNIA STREET TORRANCE CA 90503
Selwyn Joffe director, officer: President, CEO & Chairman
Kratz Steven officer: Chief Operating Officer 2929 CALIFORNIA STREET C/O MORTORCAR PARTS OF AMERICA INC TORRANCE CA 90503
Daly Kevin Gerard officer: Chief Accounting Officer 2929 CALIFORNIA STREET TORRANCE CA 90503

Motorcar Parts of America Headlines

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