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Concur Technologies Inc (NAS:CNQR)
Beneish M-Score
-2.65 (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.

Concur Technologies Inc has a M-score of -2.65 suggests that the company is not a manipulator.

CNQR' s 10-Year Beneish M-Score Range
Min: -5.11   Max: 16.45
Current: -2.65

-5.11
16.45

During the past 13 years, the highest Beneish M-Score of Concur Technologies Inc was 16.45. The lowest was -5.11. And the median was -2.58.


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 Concur Technologies 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 * 0.93+0.528 * 1.0983+0.404 * 1.1614+0.892 * 1.318+0.115 * 0.99
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9733+4.679 * -0.1051-0.327 * 1.0417
=-2.65

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $126.8 Mil.
Revenue was 178.365 + 169.522 + 163.078 + 156.922 = $667.9 Mil.
Gross Profit was 118.377 + 108.541 + 104.555 + 108.027 = $439.5 Mil.
Total Current Assets was $1,026.6 Mil.
Total Assets was $1,745.2 Mil.
Property, Plant and Equipment(Net PPE) was $97.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $58.0 Mil.
Selling, General & Admin. Expense(SGA) was $377.6 Mil.
Total Current Liabilities was $516.7 Mil.
Long-Term Debt was $397.1 Mil.
Net Income was -0.032 + -55.981 + -24.22 + -7.532 = $-87.8 Mil.
Non Operating Income was 13.099 + -1.368 + -1.712 + -0.927 = $9.1 Mil.
Cash Flow from Operations was 25.471 + 22.789 + 12.099 + 26.252 = $86.6 Mil.
Accounts Receivable was $103.4 Mil.
Revenue was 138.71 + 127.37 + 122.798 + 117.881 = $506.8 Mil.
Gross Profit was 102.165 + 90.806 + 87.802 + 85.473 = $366.2 Mil.
Total Current Assets was $1,088.3 Mil.
Total Assets was $1,681.9 Mil.
Property, Plant and Equipment(Net PPE) was $78.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.7 Mil.
Selling, General & Admin. Expense(SGA) was $294.3 Mil.
Total Current Liabilities was $468.6 Mil.
Long-Term Debt was $376.8 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)
=(126.791 / 667.887) / (103.439 / 506.759)
=0.189839 / 0.20411872
=0.93

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)
=(108.541 / 506.759) / (118.377 / 667.887)
=0.72272224 / 0.65804545
=1.0983

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 - (1026.563 + 97.297) / 1745.203) / (1 - (1088.288 + 78.021) / 1681.893)
=0.35602907 / 0.30654982
=1.1614

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
=667.887 / 506.759
=1.318

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))
=(45.731 / (45.731 + 78.021)) / (57.95 / (57.95 + 97.297))
=0.36953746 / 0.37327613
=0.99

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)
=(377.569 / 667.887) / (294.328 / 506.759)
=0.56531868 / 0.58080468
=0.9733

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)
=((397.144 + 516.696) / 1745.203) / ((376.826 + 468.619) / 1681.893)
=0.52362963 / 0.50267466
=1.0417

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
=(-87.765 - 9.092 - 86.611) / 1745.203
=-0.1051

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.

Concur Technologies Inc has a M-score of -2.65 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 own currency.

Concur Technologies Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.31150.94791.35851.04120.73281.05490.94861.07241.02750.9919
GMI 1.00380.97460.98940.92290.96890.96770.97851.0031.00011.009
AQI 0.89111.01513.08060.5081.33421.00290.6321.44961.05980.8602
SGI 0.99671.27021.35241.3291.66911.1491.18311.19311.25851.2409
DEPI 1.98611.780.77150.82490.83850.99071.00481.01780.93441.1345
SGAI 1.02051.01220.99371.06551.03360.98931.1061.19061.00891.0301
LVGI 0.93870.96660.90.480.9791.36041.95360.94061.08361.3396
TATA -0.0732-0.08040.1253-0.07-0.072-0.0592-0.0566-0.0744-0.0791-0.0574
M-score -2.45-2.57-0.41-2.58-2.36-2.71-3.12-2.42-2.61-2.69

Concur Technologies Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.08581.04211.02750.95350.9361.00390.99191.03390.95660.93
GMI 1.01131.00751.00010.99480.99770.99151.0091.03961.06471.0983
AQI 1.15661.19181.05980.99661.02550.70620.86020.78630.84411.1614
SGI 1.23971.2571.25851.25051.22321.2151.24091.26791.30551.318
DEPI 0.94070.89430.89831.01691.0431.18851.18011.09691.10390.99
SGAI 1.03951.0181.00891.01371.07231.05261.03011.00560.97340.9733
LVGI 1.00081.00081.08361.10141.09731.46141.33961.38451.39711.0417
TATA -0.0829-0.0834-0.0795-0.0881-0.0834-0.0657-0.0574-0.0673-0.0992-0.1051
M-score -2.52-2.54-2.61-2.75-2.76-2.85-2.69-2.71-2.85-2.65
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