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IAC/InterActiveCorp (NAS:IACI)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

IACI' s 10-Year Beneish M-Score Range
Min: -4.57   Max: 84.96
Current: -2.49

-4.57
84.96

During the past 13 years, the highest Beneish M-Score of IAC/InterActiveCorp was 84.96. The lowest was -4.57. And the median was -2.35.


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 * 0.9274+0.528 * 0.943+0.404 * 1.0257+0.892 * 1.04+0.115 * 0.9989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1396+4.679 * 0.0191-0.327 * 1.0831
=-2.49

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $232 Mil.
Revenue was 772.512 + 830.754 + 782.231 + 756.315 = $3,142 Mil.
Gross Profit was 580.959 + 594.064 + 556.039 + 545.215 = $2,276 Mil.
Total Current Assets was $1,294 Mil.
Total Assets was $3,958 Mil.
Property, Plant and Equipment(Net PPE) was $298 Mil.
Depreciation, Depletion and Amortization(DDA) was $120 Mil.
Selling, General & Admin. Expense(SGA) was $1,647 Mil.
Total Current Liabilities was $626 Mil.
Long-Term Debt was $1,080 Mil.
Net Income was 26.405 + 70.172 + 326.812 + -17.996 = $405 Mil.
Non Operating Income was 6.988 + 11.371 + 3.501 + -69.75 = $-48 Mil.
Cash Flow from Operations was -3.81 + 129.387 + 145.89 + 106.13 = $378 Mil.
Accounts Receivable was $241 Mil.
Revenue was 740.247 + 724.455 + 756.872 + 799.411 = $3,021 Mil.
Gross Profit was 531.013 + 498.261 + 508.016 + 526.589 = $2,064 Mil.
Total Current Assets was $1,471 Mil.
Total Assets was $4,224 Mil.
Property, Plant and Equipment(Net PPE) was $291 Mil.
Depreciation, Depletion and Amortization(DDA) was $117 Mil.
Selling, General & Admin. Expense(SGA) was $1,390 Mil.
Total Current Liabilities was $601 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)
=(232.464 / 3141.812) / (241.017 / 3020.985)
=0.07399042 / 0.07978093
=0.9274

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)
=(594.064 / 3020.985) / (580.959 / 3141.812)
=0.68318082 / 0.72451089
=0.943

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 - (1293.943 + 297.956) / 3958.105) / (1 - (1471.076 + 291.111) / 4224.056)
=0.59781284 / 0.58282111
=1.0257

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
=3141.812 / 3020.985
=1.04

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))
=(117.455 / (117.455 + 291.111)) / (120.408 / (120.408 + 297.956))
=0.28748109 / 0.28780679
=0.9989

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)
=(1646.979 / 3141.812) / (1389.602 / 3020.985)
=0.5242131 / 0.45998308
=1.1396

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 + 625.752) / 3958.105) / ((1080 + 600.643) / 4224.056)
=0.43095168 / 0.39787422
=1.0831

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
=(405.393 - -47.89 - 377.597) / 3958.105
=0.0191

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 -2.49 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.95460.99820.92690.81730.83620.98460.96081.14211.10660.9274
GMI 0.97550.98450.99080.97510.96740.94770.92880.92860.9330.943
AQI 1.07031.06791.13420.96690.93150.90620.89490.93450.97181.0257
SGI 1.361.29591.24081.16381.07931.04080.98560.98021.02861.04
DEPI 0.94640.97590.88380.77840.85490.86581.02651.07281.01860.9989
SGAI 1.0020.97540.97550.960.96231.01761.0591.11341.14241.1396
LVGI 1.71351.71781.60621.57791.24331.28391.28141.31721.04231.0831
TATA -0.0439-0.0491-0.0468-0.0306-0.0345-0.0262-0.02130.02390.01110.0191
M-score -2.63-2.66-2.71-2.88-2.86-2.76-2.81-2.43-2.39-2.49
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