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ExlService Holdings Inc (NAS:EXLS)
Beneish M-Score
-2.64 (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.

ExlService Holdings Inc has a M-score of -2.64 suggests that the company is not a manipulator.

EXLS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31   Max: -0.72
Current: -2.64

-3.31
-0.72

During the past 13 years, the highest Beneish M-Score of ExlService Holdings Inc was -0.72. The lowest was -3.31. And the median was -2.56.


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 ExlService Holdings 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 * 0.9872+0.528 * 0.9438+0.404 * 0.9108+0.892 * 1.1975+0.115 * 0.9686
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9611+4.679 * -0.0673-0.327 * 0.8295
=-2.64

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $111.4 Mil.
Revenue was 170.478 + 167.036 + 165.858 + 163.503 = $666.9 Mil.
Gross Profit was 58.452 + 58.657 + 59.742 + 60.305 = $237.2 Mil.
Total Current Assets was $343.8 Mil.
Total Assets was $646.9 Mil.
Property, Plant and Equipment(Net PPE) was $49.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.8 Mil.
Selling, General & Admin. Expense(SGA) was $133.1 Mil.
Total Current Liabilities was $100.5 Mil.
Long-Term Debt was $35.3 Mil.
Net Income was 16.375 + 13.82 + 14.762 + 15.162 = $60.1 Mil.
Non Operating Income was 5.229 + 1.426 + 0.332 + 0.233 = $7.2 Mil.
Cash Flow from Operations was 37.356 + -10.441 + 42.141 + 27.383 = $96.4 Mil.
Accounts Receivable was $94.2 Mil.
Revenue was 155.621 + 143.51 + 135.286 + 122.457 = $556.9 Mil.
Gross Profit was 55.143 + 50.385 + 43.915 + 37.474 = $186.9 Mil.
Total Current Assets was $301.6 Mil.
Total Assets was $613.7 Mil.
Property, Plant and Equipment(Net PPE) was $48.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $30.1 Mil.
Selling, General & Admin. Expense(SGA) was $115.6 Mil.
Total Current Liabilities was $94.9 Mil.
Long-Term Debt was $60.3 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)
=(111.383 / 666.875) / (94.216 / 556.874)
=0.16702231 / 0.16918728
=0.9872

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)
=(186.917 / 556.874) / (237.156 / 666.875)
=0.33565403 / 0.35562287
=0.9438

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 - (343.772 + 49.708) / 646.897) / (1 - (301.608 + 48.152) / 613.718)
=0.39174243 / 0.43009656
=0.9108

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
=666.875 / 556.874
=1.1975

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))
=(30.107 / (30.107 + 48.152)) / (32.754 / (32.754 + 49.708))
=0.38470975 / 0.39720114
=0.9686

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)
=(133.087 / 666.875) / (115.638 / 556.874)
=0.19956813 / 0.20765559
=0.9611

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)
=((35.252 + 100.461) / 646.897) / ((60.323 + 94.892) / 613.718)
=0.20979074 / 0.25290932
=0.8295

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
=(60.119 - 7.22 - 96.439) / 646.897
=-0.0673

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.

ExlService Holdings Inc has a M-score of -2.64 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.

ExlService Holdings Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.11310.9720.8590.98360.95790.88331.05920.97281.01020.9172
GMI 0.90541.07010.96480.89231.06431.02981.00950.98541.17350.9305
AQI 2.63521.10630.98021.37421.64871.41040.97990.87061.05561.009
SGI 1.64661.47731.01011.05111.32331.42651.22851.08021.04351.2588
DEPI 0.81760.89081.21520.96981.02970.88950.89280.94131.0970.9643
SGAI 0.9761.08811.09311.02630.97530.90420.94160.9991.0540.9621
LVGI 0.5620.88840.92250.83221.08481.21230.8720.94571.47661.0422
TATA -0.033-0.0186-0.0504-0.0565-0.0462-0.0658-0.0492-0.064-0.0601-0.0739
M-score -1.22-2.08-2.83-2.57-2.17-2.40-2.42-2.78-2.75-2.72

ExlService Holdings Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.9520.91640.98821.01021.0681.11991.060.91720.96260.9872
GMI 0.98180.99151.07961.17351.20881.14591.02140.93050.91120.9438
AQI 0.85680.84350.90991.05561.19311.21181.16321.0090.91070.9108
SGI 1.06581.05551.03421.04351.07591.14121.2251.25881.25151.1975
DEPI 1.1061.19741.22541.0970.95470.91740.91830.96430.92770.9686
SGAI 0.98131.00530.98661.0541.06321.02831.00830.96210.95570.9611
LVGI 0.97160.9270.97811.47661.95321.77071.64851.04220.85990.8295
TATA -0.0544-0.0646-0.0806-0.0601-0.0541-0.0559-0.0572-0.0739-0.0521-0.0673
M-score -2.76-2.83-2.80-2.75-2.74-2.61-2.64-2.72-2.57-2.64
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