RELL 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 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.
During the past 13 years, the highest Beneish M-Score of Richardson Electronics was 3.98. The lowest was -3.86. And the median was -2.42.
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 Richardson Electronics 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 * 0.8827||+||0.528 * 0.9979||+||0.404 * 2.5588||+||0.892 * 0.9877||+||0.115 * 1.0269|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1352||+||4.679 * -0.0403||-||0.327 * 1.1593|
|This Year (Nov14) TTM:||Last Year (Nov13) TTM:|
|Accounts Receivable was $17.6 Mil.|
Revenue was 33.841 + 34.699 + 35.383 + 32.884 = $136.8 Mil.
Gross Profit was 10.462 + 10.658 + 10.164 + 9.651 = $40.9 Mil.
Total Current Assets was $171.5 Mil.
Total Assets was $194.3 Mil.
Property, Plant and Equipment(Net PPE) was $8.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.4 Mil.
Selling, General & Admin. Expense(SGA) was $46.8 Mil.
Total Current Liabilities was $21.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -1.057 + -0.083 + -2.475 + -0.532 = $-4.1 Mil.
Non Operating Income was -0.033 + 0.059 + 0.023 + 0.422 = $0.5 Mil.
Cash Flow from Operations was -2.008 + -0.328 + 6.05 + -0.501 = $3.2 Mil.
|Accounts Receivable was $20.2 Mil.
Revenue was 35.436 + 34.257 + 35.183 + 33.63 = $138.5 Mil.
Gross Profit was 11.007 + 10.192 + 10.247 + 9.91 = $41.4 Mil.
Total Current Assets was $194.8 Mil.
Total Assets was $206.7 Mil.
Property, Plant and Equipment(Net PPE) was $5.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.0 Mil.
Selling, General & Admin. Expense(SGA) was $41.7 Mil.
Total Current Liabilities was $19.6 Mil.
Long-Term Debt was $0.0 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(17.625 / 136.807)||/||(20.216 / 138.506)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(10.658 / 138.506)||/||(10.462 / 136.807)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (171.546 + 8.352) / 194.286)||/||(1 - (194.779 + 5.935) / 206.696)|
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.
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))|
|=||(1.013 / (1.013 + 5.935))||/||(1.382 / (1.382 + 8.352))|
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)|
|=||(46.757 / 136.807)||/||(41.701 / 138.506)|
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)|
|=||((0 + 21.385) / 194.286)||/||((0 + 19.624) / 206.696)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-4.147 - 0.471||-||3.213)||/||194.286|
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.
Richardson Electronics has a M-score of -2.23 suggests that the company will not be a manipulator.
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
Richardson Electronics Annual Data
Richardson Electronics Quarterly Data