Switch to:
GuruFocus has detected 5 Warning Signs with Veeco Instruments Inc $VECO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Veeco Instruments Inc (NAS:VECO)
Beneish M-Score
-3.51 (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.

Veeco Instruments Inc has a M-score of -3.51 suggests that the company is not a manipulator.

VECO' s Beneish M-Score Range Over the Past 10 Years
Min: -5.15   Max: 0.22
Current: -3.51

-5.15
0.22

During the past 13 years, the highest Beneish M-Score of Veeco Instruments Inc was 0.22. The lowest was -5.15. And the median was -2.62.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Veeco Instruments 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 * 1.2006+0.528 * 0.984+0.404 * 0.5899+0.892 * 0.7638+0.115 * 1.002
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1759+4.679 * -0.0988-0.327 * 2.0193
=-3.51

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $51.4 Mil.
Revenue was 94.386 + 93.609 + 85.482 + 75.348 = $348.8 Mil.
Gross Profit was 34.2 + 36.007 + 33.455 + 31.439 = $135.1 Mil.
Total Current Assets was $822.4 Mil.
Total Assets was $1,081.6 Mil.
Property, Plant and Equipment(Net PPE) was $63.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.9 Mil.
Selling, General & Admin. Expense(SGA) was $78.3 Mil.
Total Current Liabilities was $132.8 Mil.
Long-Term Debt was $268.1 Mil.
Net Income was 1.095 + -4.998 + -69.598 + -32.082 = $-105.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 6.332 + 0.464 + 6.823 + -12.333 = $1.3 Mil.
Accounts Receivable was $56.1 Mil.
Revenue was 78.011 + 106.544 + 140.744 + 131.41 = $456.7 Mil.
Gross Profit was 31.956 + 38.785 + 54.25 + 49.069 = $174.1 Mil.
Total Current Assets was $517.5 Mil.
Total Assets was $861.8 Mil.
Property, Plant and Equipment(Net PPE) was $80.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $37.7 Mil.
Selling, General & Admin. Expense(SGA) was $87.1 Mil.
Total Current Liabilities was $157.1 Mil.
Long-Term Debt was $1.1 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(51.433 / 348.825) / (56.089 / 456.709)
=0.14744643 / 0.12281124
=1.2006

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)
=(174.06 / 456.709) / (135.101 / 348.825)
=0.38111795 / 0.38730309
=0.984

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (822.448 + 63.684) / 1081.642) / (1 - (517.488 + 80.225) / 861.756)
=0.18075297 / 0.30640112
=0.5899

4. SGI = Sales Growth Index

Ratio of sales 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
=348.825 / 456.709
=0.7638

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(37.719 / (37.719 + 80.225)) / (29.856 / (29.856 + 63.684))
=0.31980431 / 0.31917896
=1.002

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(78.269 / 348.825) / (87.144 / 456.709)
=0.22437899 / 0.19080859
=1.1759

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)
=((268.098 + 132.813) / 1081.642) / ((1.104 + 157.077) / 861.756)
=0.37065036 / 0.1835566
=2.0193

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
=(-105.583 - 0 - 1.286) / 1081.642
=-0.0988

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.

Veeco Instruments Inc has a M-score of -3.51 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

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

Veeco Instruments Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.95180.7211.52530.78510.60161.26120.58662.12970.67881.6811
GMI 1.12470.98131.01740.81610.99141.1621.3410.90560.9240.9297
AQI 1.05230.75260.75330.42061.40810.98892.56491.22730.95150.8571
SGI 0.91261.10020.74232.83841.04950.5270.64291.18421.21420.6969
DEPI 1.05890.97781.18471.16521.55940.92120.82560.72030.71280.9534
SGAI 1.07060.92761.07790.42451.01271.45821.81880.88660.82751.2353
LVGI 0.91980.97420.86560.84580.5410.67271.12371.33291.00341.0372
TATA -0.1082-0.2902-0.12320.14590.017-0.0865-0.0453-0.1173-0.0536-0.1297
M-score -3.00-4.10-2.84-0.52-2.35-2.97-2.78-1.90-2.90-2.88

Veeco Instruments Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 2.12971.14221.16970.55340.67880.76490.54691.51131.68111.2006
GMI 0.90560.93150.86960.87730.9240.89290.9070.92760.92970.984
AQI 1.22731.19981.15491.31350.95151.00551.0890.87070.85710.5899
SGI 1.18421.10971.2181.37321.21421.14070.91750.71350.69690.7638
DEPI 0.72030.70340.69270.71870.71280.84060.84050.84180.95341.002
SGAI 0.88660.93690.85610.74380.82750.83970.96541.18631.23531.1759
LVGI 1.33291.73611.70881.22051.00340.87540.72651.07961.03722.0193
TATA -0.1173-0.1804-0.1752-0.1629-0.0536-0.0245-0.0303-0.1263-0.1297-0.0988
M-score -1.90-3.31-3.20-3.32-2.90-2.69-3.05-3.02-2.88-3.51
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