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Micron Technology Beneish M-Score

: -2.61 (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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Micron Technology's Beneish M-Score or its related term are showing as below:

MU' s Beneish M-Score Range Over the Past 10 Years
Min: -14.48   Med: -2.75   Max: 23.65
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Micron Technology was 23.65. The lowest was -14.48. And the median was -2.75.


Micron Technology Beneish M-Score Historical Data

The historical data trend for Micron Technology'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.

Micron Technology Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.45 -2.37 -3.43 -2.57 -2.64

Micron Technology Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
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 -2.74 -2.64 -2.68 -2.53 -2.61

Competitive Comparison

For the Semiconductors subindustry, Micron Technology'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.

   

Micron Technology Beneish M-Score Distribution

For the Semiconductors industry and Technology sector, Micron Technology's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Micron Technology's Beneish M-Score falls into.



Micron Technology 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 Micron Technology 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 * 1.1585+0.528 * 0.7178+0.404 * 0.9715+0.892 * 1.2708+0.115 * 1.0206
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9046+4.679 * -0.081-0.327 * 1.002
=-2.61

* 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 (May22) TTM:Last Year (May21) TTM:
Total Receivables was $6,229 Mil.
Revenue was 8642 + 7786 + 7687 + 8274 = $32,389 Mil.
Gross Profit was 4035 + 3676 + 3565 + 3912 = $15,188 Mil.
Total Current Assets was $22,708 Mil.
Total Assets was $65,296 Mil.
Property, Plant and Equipment(Net PPE) was $37,355 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,855 Mil.
Selling, General, & Admin. Expense(SGA) was $1,022 Mil.
Total Current Liabilities was $7,009 Mil.
Long-Term Debt & Capital Lease Obligation was $7,485 Mil.
Net Income was 2626 + 2263 + 2306 + 2720 = $9,915 Mil.
Non Operating Income was 8 + 1 + -113 + 21 = $-83 Mil.
Cash Flow from Operations was 3838 + 3628 + 3938 + 3884 = $15,288 Mil.
Total Receivables was $4,231 Mil.
Revenue was 7422 + 6236 + 5773 + 6056 = $25,487 Mil.
Gross Profit was 3126 + 1649 + 1736 + 2068 = $8,579 Mil.
Total Current Assets was $18,561 Mil.
Total Assets was $55,943 Mil.
Property, Plant and Equipment(Net PPE) was $32,767 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,160 Mil.
Selling, General, & Admin. Expense(SGA) was $889 Mil.
Total Current Liabilities was $5,462 Mil.
Long-Term Debt & Capital Lease Obligation was $6,931 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)
=(6229 / 32389) / (4231 / 25487)
=0.19231838 / 0.1660062
=1.1585

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)
=(8579 / 25487) / (15188 / 32389)
=0.33660297 / 0.46892463
=0.7178

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 - (22708 + 37355) / 65296) / (1 - (18561 + 32767) / 55943)
=0.08014273 / 0.08249468
=0.9715

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
=32389 / 25487
=1.2708

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))
=(6160 / (6160 + 32767)) / (6855 / (6855 + 37355))
=0.15824492 / 0.15505542
=1.0206

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)
=(1022 / 32389) / (889 / 25487)
=0.03155392 / 0.03488053
=0.9046

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)
=((7485 + 7009) / 65296) / ((6931 + 5462) / 55943)
=0.22197378 / 0.22152906
=1.002

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
=(9915 - -83 - 15288) / 65296
=-0.081

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.

Micron Technology has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


Micron Technology Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Micron Technology's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Micron Technology Business Description

Micron Technology logo
Address
8000 South Federal Way, Post Office Box 6, Boise, ID, USA, 83716-9632
Micron historically focused on designing and manufacturing DRAM for PCs. The firm then expanded into the NAND flash memory market. It increased its DRAM scale with the purchase of Elpida (completed in mid-2013) and Inotera (completed in December 2016). The firm's DRAM and NAND products tailored to PCs, data centers, smartphones, game consoles, automotives, and other computing devices.
Executives
Murphy Mark J. officer: EVP & Chief Financial Officer DELPHI AUTOMOTIVE PLC 5725 DELPHI DRIVE TROY MI 48098
Beard Robert P officer: SVP, General Counsel&Secretary 8000 S. FEDERAL WAY BOISE ID 83716
Haynesworth Linnie M director 214 N TRYON STREET CHARLOTTE NC 28202
Allen Scott R. officer: CVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Marosvari Paul officer: VP, Chief Accounting Officer 8000 S. FEDERAL WAY BOISE ID 83716
Wright Mary Ann director 250 STEPHENSON HIGHWAY TROY MI 48083
Gomo Steven J director 495 E. JAVA DRIVE SUNNYVALE CA 94089
Mccarthy Mary Pat director 2704 WEST 112TH STREET LEAWOOD KS 66211
Bokan Michael W officer: SVP, WORLDWIDE SALES 8000 S FEDERAL WAY MS 1-557 BOISE ID 83716
Zinsner David officer: SVP & Chief Financial Officer 1001 MURPHY RANCH ROAD MILPITAS CA 95035
Bhatia Manish H officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Sadana Sumit officer: EVP & Chief Business Officer 47544 AVALON HEIGHTS TERRACE FREMONT CA 94539
Mehrotra Sanjay officer: President & CEO C/O WESTERN DIGITAL CORPORATION 3355 MICHELSON DRIVE, SUITE 100 IRVINE CA 92612
Maddock Ernest E officer: CFO & VP, Finance LAM RESEARCH 4650 CUSHING PARKWAY FREMONT CA 94538

Micron Technology Headlines

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