IACI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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 -2.36.
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 * 0.9822||+||0.528 * 0.9529||+||0.404 * 1.0523||+||0.892 * 1.0698||+||0.115 * 0.9712|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1337||+||4.679 * -0.0355||-||0.327 * 1.0037|
|This Year (Sep15) TTM:||Last Year (Sep14) TTM:|
|Accounts Receivable was $247 Mil.|
Revenue was 838.561 + 771.132 + 772.512 + 830.754 = $3,213 Mil.
Gross Profit was 633.3 + 587.856 + 580.959 + 594.064 = $2,396 Mil.
Total Current Assets was $1,246 Mil.
Total Assets was $4,027 Mil.
Property, Plant and Equipment(Net PPE) was $299 Mil.
Depreciation, Depletion and Amortization(DDA) was $119 Mil.
Selling, General & Admin. Expense(SGA) was $1,800 Mil.
Total Current Liabilities was $653 Mil.
Long-Term Debt was $1,000 Mil.
Net Income was 65.611 + 59.305 + 26.405 + 70.172 = $221 Mil.
Non Operating Income was 34.398 + -1.638 + 6.988 + 11.371 = $51 Mil.
Cash Flow from Operations was 98.328 + 89.589 + -3.81 + 129.387 = $313 Mil.
|Accounts Receivable was $235 Mil.
Revenue was 782.231 + 756.315 + 740.247 + 724.455 = $3,003 Mil.
Gross Profit was 556.039 + 545.215 + 531.053 + 501.881 = $2,134 Mil.
Total Current Assets was $1,455 Mil.
Total Assets was $4,238 Mil.
Property, Plant and Equipment(Net PPE) was $301 Mil.
Depreciation, Depletion and Amortization(DDA) was $115 Mil.
Selling, General & Admin. Expense(SGA) was $1,484 Mil.
Total Current Liabilities was $654 Mil.
Long-Term Debt was $1,080 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(246.978 / 3212.959)||/||(235.035 / 3003.248)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(587.856 / 3003.248)||/||(633.3 / 3212.959)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1246.246 + 299.078) / 4027.318)||/||(1 - (1455.279 + 300.955) / 4238.41)|
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.
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))|
|=||(115.008 / (115.008 + 300.955))||/||(119.035 / (119.035 + 299.078))|
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)|
|=||(1799.752 / 3212.959)||/||(1483.885 / 3003.248)|
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)|
|=||((1000 + 653.457) / 4027.318)||/||((1080 + 653.693) / 4238.41)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(221.493 - 51.119||-||313.494)||/||4027.318|
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 -2.63 suggests that the company will not be a manipulator.
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
IAC/InterActiveCorp Annual Data
IAC/InterActiveCorp Quarterly Data