Switch to:
Harte-Hanks Inc (NYSE:HHS)
Beneish M-Score
-4.92 (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.

Harte-Hanks Inc has a M-score of -4.92 suggests that the company is not a manipulator.

HHS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.92   Max: -0.46
Current: -4.92

-4.92
-0.46

During the past 13 years, the highest Beneish M-Score of Harte-Hanks Inc was -0.46. The lowest was -4.92. 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 Harte-Hanks 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 * 1.0274+0.528 * 0.9829+0.404 * 0.8767+0.892 * 0.8946+0.115 * 0.9731
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.065+4.679 * -0.4615-0.327 * 1.415
=-4.92

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $115.2 Mil.
Revenue was 129.815 + 121.968 + 122.345 + 121.173 = $495.3 Mil.
Gross Profit was 92.449 + 87.376 + 86.939 + 85.214 = $352.0 Mil.
Total Current Assets was $151.7 Mil.
Total Assets was $414.6 Mil.
Property, Plant and Equipment(Net PPE) was $33.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.2 Mil.
Selling, General & Admin. Expense(SGA) was $315.4 Mil.
Total Current Liabilities was $97.4 Mil.
Long-Term Debt was $74.3 Mil.
Net Income was 2.545 + -170.914 + -4.172 + 1.615 = $-170.9 Mil.
Non Operating Income was -0.471 + 0.575 + -11.019 + 0.407 = $-10.5 Mil.
Cash Flow from Operations was 1.698 + 2.221 + 6.596 + 20.428 = $30.9 Mil.
Accounts Receivable was $125.3 Mil.
Revenue was 146.518 + 134.121 + 140.31 + 132.727 = $553.7 Mil.
Gross Profit was 102.343 + 93.771 + 98.152 + 92.451 = $386.7 Mil.
Total Current Assets was $201.4 Mil.
Total Assets was $644.2 Mil.
Property, Plant and Equipment(Net PPE) was $36.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.9 Mil.
Selling, General & Admin. Expense(SGA) was $331.0 Mil.
Total Current Liabilities was $124.3 Mil.
Long-Term Debt was $64.3 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)
=(115.155 / 495.301) / (125.295 / 553.676)
=0.23249499 / 0.22629661
=1.0274

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)
=(87.376 / 553.676) / (92.449 / 495.301)
=0.69845361 / 0.71063454
=0.9829

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 - (151.706 + 33.913) / 414.621) / (1 - (201.417 + 36.913) / 644.177)
=0.55231645 / 0.63002405
=0.8767

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
=495.301 / 553.676
=0.8946

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))
=(14.92 / (14.92 + 36.913)) / (14.245 / (14.245 + 33.913))
=0.28784751 / 0.29579717
=0.9731

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)
=(315.37 / 495.301) / (331.035 / 553.676)
=0.63672393 / 0.59788577
=1.065

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)
=((74.313 + 97.44) / 414.621) / ((64.312 + 124.269) / 644.177)
=0.41424096 / 0.29274718
=1.415

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
=(-170.926 - -10.508 - 30.943) / 414.621
=-0.4615

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.

Harte-Hanks Inc has a M-score of -4.92 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.

Harte-Hanks Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.98351.07130.91331.04081.12991.36550.8750.97641.05421.0274
GMI 1.03980.40111.03460.99181.00250.92360.97760.98951.01830.9829
AQI 1.0051.02031.04391.00291.00131.00451.01960.91391.06510.8767
SGI 1.04380.98160.93110.79440.95420.74850.9460.9630.98940.8946
DEPI 0.96560.91760.90570.98291.20141.25740.69020.95170.96850.9731
SGAI 0.98476.28541.021.03360.97831.10071.04281.05880.99321.065
LVGI 1.4551.18871.0140.86190.91230.91510.95871.01040.89781.415
TATA -0.035-0.0517-0.057-0.0702-0.0433-0.0182-0.2219-0.0673-0.001-0.4615
M-score -2.75-3.96-2.87-2.92-2.55-2.45-3.71-2.91-2.38-4.92

Harte-Hanks Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.13330.9650.89140.95661.05421.03510.9831.141.0274
GMI 0.93340.96030.99461.00141.01831.0131.00540.99620.9829
AQI 0.91391.01081.02641.04111.06511.13541.12940.85350.8767
SGI 0.82970.9020.98060.98950.98940.96810.93570.91540.8946
DEPI 0.95170.7230.63080.93240.96850.98980.99450.99690.9731
SGAI 1.11261.09381.0631.04540.99320.98680.99481.0191.065
LVGI 1.01040.98240.96620.92650.89780.87910.86911.42281.415
TATA -0.0673-0.0652-0.0492-0.0319-0.001-0.0241-0.027-0.4517-0.4615
M-score -2.92-2.96-2.86-2.65-2.38-2.49-2.58-4.74-4.92
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)

GuruFocus Premium Plus Membership

FEEDBACK