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IAC/InterActiveCorp (NAS:IACI)
Beneish M-Score
-2.39 (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.

IAC/InterActiveCorp has a M-score of -2.39 suggests that the company is not a manipulator.

IACI' s 10-Year Beneish M-Score Range
Min: -4.45   Max: 10.93
Current: -2.39

-4.45
10.93

During the past 13 years, the highest Beneish M-Score of IAC/InterActiveCorp was 10.93. The lowest was -4.45. And the median was -2.39.


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 IAC/InterActiveCorp 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 * 1.1066+0.528 * 0.9329+0.404 * 0.9718+0.892 * 1.0286+0.115 * 1.0186
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1423+4.679 * 0.0111-0.327 * 1.0423
=-2.39

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $236 Mil.
Revenue was 830.754 + 782.231 + 756.315 + 740.247 = $3,110 Mil.
Gross Profit was 594.064 + 556.039 + 545.215 + 531.053 = $2,226 Mil.
Total Current Assets was $1,554 Mil.
Total Assets was $4,275 Mil.
Property, Plant and Equipment(Net PPE) was $302 Mil.
Depreciation, Depletion and Amortization(DDA) was $119 Mil.
Selling, General & Admin. Expense(SGA) was $1,568 Mil.
Total Current Liabilities was $674 Mil.
Long-Term Debt was $1,080 Mil.
Net Income was 70.172 + 326.812 + -17.996 + 35.885 = $415 Mil.
Non Operating Income was 11.371 + 3.501 + -69.75 + -1.958 = $-57 Mil.
Cash Flow from Operations was 129.387 + 145.89 + 106.067 + 42.704 = $424 Mil.
Accounts Receivable was $207 Mil.
Revenue was 724.455 + 756.872 + 799.411 + 742.249 = $3,023 Mil.
Gross Profit was 498.261 + 508.016 + 526.589 + 486.4 = $2,019 Mil.
Total Current Assets was $1,475 Mil.
Total Assets was $4,235 Mil.
Property, Plant and Equipment(Net PPE) was $294 Mil.
Depreciation, Depletion and Amortization(DDA) was $119 Mil.
Selling, General & Admin. Expense(SGA) was $1,335 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt was $1,080 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)
=(236.086 / 3109.547) / (207.408 / 3022.987)
=0.07592296 / 0.06861029
=1.1066

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)
=(556.039 / 3022.987) / (594.064 / 3109.547)
=0.66797045 / 0.71597921
=0.9329

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 - (1553.881 + 302.459) / 4274.878) / (1 - (1475.386 + 293.964) / 4234.684)
=0.56575603 / 0.58217662
=0.9718

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
=3109.547 / 3022.987
=1.0286

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))
=(118.752 / (118.752 + 293.964)) / (119.082 / (119.082 + 302.459))
=0.28773297 / 0.28249209
=1.0186

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)
=(1568.047 / 3109.547) / (1334.552 / 3022.987)
=0.50426863 / 0.44146799
=1.1423

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)
=((1080 + 673.954) / 4274.878) / ((1080 + 586.897) / 4234.684)
=0.41029335 / 0.39362961
=1.0423

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
=(414.873 - -56.836 - 424.048) / 4274.878
=0.0111

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.

IAC/InterActiveCorp has a M-score of -2.39 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.

IAC/InterActiveCorp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.93934.81890.02147.77571.01931.05251.17660.95460.83621.1066
GMI 0.92330.766310.74670.08720.98361.06841.01090.97540.96750.9329
AQI 0.8810.9881.07070.7430.79591.14091.2341.07030.93150.9718
SGI 1.28470.200213.2440.10850.93191.21541.25821.361.07931.0286
DEPI 1.11611.05280.77272.01540.60151.68831.09230.94640.85491.0186
SGAI 1.09621.60880.087711.24970.98620.89210.92670.99860.96561.1423
LVGI 1.39271.03180.8620.35051.37961.33411.40381.71351.24331.0423
TATA -0.0266-0.0474-0.082-0.132-0.356-0.0598-0.048-0.0439-0.03450.0111
M-score -2.63-0.1412.510.32-4.45-2.44-2.32-2.63-2.86-2.39

IAC/InterActiveCorp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.03930.95460.99820.92690.81730.83620.98460.96081.14211.1066
GMI 0.97360.97550.98450.99080.97510.96740.94770.92880.92860.9329
AQI 1.06271.07031.06791.13420.96690.93150.90620.89490.93450.9718
SGI 1.37551.361.29591.24081.16381.07931.04080.98560.98021.0286
DEPI 1.08290.94640.97590.88380.77840.85490.86581.02651.07281.0186
SGAI 0.99751.0020.97540.97550.960.96231.01751.05891.11331.1423
LVGI 1.18541.71351.71781.60621.57791.24331.28391.28141.31721.0423
TATA -0.0597-0.0439-0.0491-0.0468-0.0306-0.0345-0.0262-0.02130.02390.0111
M-score -2.43-2.63-2.66-2.71-2.88-2.86-2.76-2.81-2.43-2.39
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