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Mantech International Corp (NAS:MANT)
Beneish M-Score
-3.05 (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.

Mantech International Corp has a M-score of -3.05 suggests that the company is not a manipulator.

MANT' s 10-Year Beneish M-Score Range
Min: -3.27   Max: -1.92
Current: -3.05

-3.27
-1.92

During the past 13 years, the highest Beneish M-Score of Mantech International Corp was -1.92. The lowest was -3.27. And the median was -2.51.


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 Mantech International Corp 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 * 1.0164+0.528 * 0.9994+0.404 * 1.1612+0.892 * 0.7841+0.115 * 1.014
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0826+4.679 * -0.1168-0.327 * 0.6926
=-3.05

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $408 Mil.
Revenue was 463.381 + 452.033 + 491.536 + 567.399 = $1,974 Mil.
Gross Profit was 63.592 + 59.024 + 74.846 + 73.795 = $271 Mil.
Total Current Assets was $459 Mil.
Total Assets was $1,537 Mil.
Property, Plant and Equipment(Net PPE) was $28 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General & Admin. Expense(SGA) was $162 Mil.
Total Current Liabilities was $303 Mil.
Long-Term Debt was $0 Mil.
Net Income was 7.708 + 9.634 + -65.598 + 17.718 = $-31 Mil.
Non Operating Income was -10.066 + -0.041 + 0.032 + -0.02 = $-10 Mil.
Cash Flow from Operations was -2.26 + 62.254 + 22.225 + 76.916 = $159 Mil.
Accounts Receivable was $512 Mil.
Revenue was 605.129 + 646.008 + 621.821 + 645.028 = $2,518 Mil.
Gross Profit was 82.09 + 83.711 + 86.397 + 93.535 = $346 Mil.
Total Current Assets was $721 Mil.
Total Assets was $1,819 Mil.
Property, Plant and Equipment(Net PPE) was $28 Mil.
Depreciation, Depletion and Amortization(DDA) was $31 Mil.
Selling, General & Admin. Expense(SGA) was $190 Mil.
Total Current Liabilities was $318 Mil.
Long-Term Debt was $200 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)
=(408.063 / 1974.349) / (512.01 / 2517.986)
=0.2066823 / 0.20334108
=1.0164

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)
=(59.024 / 2517.986) / (63.592 / 1974.349)
=0.13730537 / 0.1373906
=0.9994

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 - (458.519 + 28.372) / 1537.027) / (1 - (721.026 + 27.882) / 1819.299)
=0.68322547 / 0.58835354
=1.1612

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
=1974.349 / 2517.986
=0.7841

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))
=(30.778 / (30.778 + 27.882)) / (30.423 / (30.423 + 28.372))
=0.52468462 / 0.51744196
=1.014

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)
=(161.517 / 1974.349) / (190.278 / 2517.986)
=0.08180772 / 0.07556754
=1.0826

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)
=((0 + 303.048) / 1537.027) / ((200 + 317.881) / 1819.299)
=0.19716505 / 0.28465964
=0.6926

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
=(-30.538 - -10.095 - 159.135) / 1537.027
=-0.1168

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.

Mantech International Corp has a M-score of -3.05 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.

Mantech International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.87860.95460.85041.12090.93410.90781.02760.92741.12750.9335
GMI 1.22720.86051.04831.05070.98880.93891.1461.04681.01681.0481
AQI 1.01721.15260.96271.20040.95140.94471.09530.99220.99620.9435
SGI 1.20071.16371.161.27341.2921.07991.28891.10210.89980.8946
DEPI 0.95371.02691.01280.83620.98060.92881.06660.95950.82931.2896
SGAI 1.03740.86211.0650.92230.98051.04860.81080.9511.16120.984
LVGI 0.93361.02190.74551.730.78040.7181.7190.96950.95490.904
TATA -0.0073-0.0409-0.05710.0039-0.036-0.0189-0.0288-0.0521-0.0169-0.1128
M-score -2.31-2.56-2.66-2.24-2.40-2.56-2.41-2.66-2.56-3.09

Mantech International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.87620.98870.95841.12751.06111.0661.12020.93350.87271.0164
GMI 1.04641.02581.00441.01681.02281.05481.08721.04811.02590.9994
AQI 1.04621.13761.10210.99620.99820.96860.96610.94350.98481.1612
SGI 1.04720.97280.91550.89980.89670.92170.92360.89460.82930.7841
DEPI 0.6480.42550.50330.82931.15541.42741.36791.28961.13051.014
SGAI 1.00141.04931.13841.16121.14511.07110.99830.9841.01351.0826
LVGI 0.93360.83310.90640.95490.90780.90930.92580.9040.8910.6926
TATA -0.0771-0.0055-0.0696-0.0169-0.0229-0.021-0.0131-0.1128-0.1239-0.1168
M-score -2.89-2.49-2.93-2.56-2.59-2.50-2.40-3.09-3.27-3.05
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