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Mantech International Corp (NAS:MANT)
Beneish M-Score
-3.36 (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 -3.36 suggests that the company is not a manipulator.

MANT' s 10-Year Beneish M-Score Range
Min: -3.36   Max: -1.88
Current: -3.36

-3.36
-1.88

During the past 13 years, the highest Beneish M-Score of Mantech International Corp was -1.88. The lowest was -3.36. 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 * 0.7613+0.528 * 0.9458+0.404 * 1.2105+0.892 * 0.7598+0.115 * 0.964
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1432+4.679 * -0.1291-0.327 * 0.5913
=-3.36

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $284 Mil.
Revenue was 447.2 + 463.381 + 452.033 + 491.536 = $1,854 Mil.
Gross Profit was 64.413 + 63.592 + 59.024 + 74.846 = $262 Mil.
Total Current Assets was $436 Mil.
Total Assets was $1,509 Mil.
Property, Plant and Equipment(Net PPE) was $27 Mil.
Depreciation, Depletion and Amortization(DDA) was $31 Mil.
Selling, General & Admin. Expense(SGA) was $157 Mil.
Total Current Liabilities was $261 Mil.
Long-Term Debt was $0 Mil.
Net Income was 15.487 + 7.708 + 9.634 + -65.598 = $-33 Mil.
Non Operating Income was 0.067 + -10.066 + -0.041 + 0.032 = $-10 Mil.
Cash Flow from Operations was 89.794 + -2.26 + 62.254 + 22.225 = $172 Mil.
Accounts Receivable was $491 Mil.
Revenue was 567.399 + 605.129 + 646.008 + 621.821 = $2,440 Mil.
Gross Profit was 73.795 + 82.09 + 83.711 + 86.397 = $326 Mil.
Total Current Assets was $768 Mil.
Total Assets was $1,864 Mil.
Property, Plant and Equipment(Net PPE) was $29 Mil.
Depreciation, Depletion and Amortization(DDA) was $31 Mil.
Selling, General & Admin. Expense(SGA) was $181 Mil.
Total Current Liabilities was $345 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)
=(284.17 / 1854.15) / (491.275 / 2440.357)
=0.1532616 / 0.20131276
=0.7613

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)
=(63.592 / 2440.357) / (64.413 / 1854.15)
=0.13358414 / 0.14123722
=0.9458

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 - (436.086 + 26.661) / 1508.509) / (1 - (767.597 + 29.053) / 1864.392)
=0.69324214 / 0.57270252
=1.2105

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
=1854.15 / 2440.357
=0.7598

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))
=(30.843 / (30.843 + 29.053)) / (30.575 / (30.575 + 26.661))
=0.51494257 / 0.53419177
=0.964

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)
=(157.442 / 1854.15) / (181.258 / 2440.357)
=0.0849133 / 0.0742752
=1.1432

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 + 260.803) / 1508.509) / ((200 + 345.126) / 1864.392)
=0.17288793 / 0.29238808
=0.5913

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
=(-32.769 - -10.008 - 172.013) / 1508.509
=-0.1291

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 -3.36 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 0.77351.03110.85041.12090.93410.90781.02760.70911.10580.9813
GMI 1.00791.01741.04831.05070.98880.93891.1461.04681.01681.0481
AQI 0.99951.17310.96271.20040.95140.94471.09530.99220.99620.9435
SGI 1.23931.18551.161.27341.2921.07991.28891.10210.89980.8946
DEPI 0.91091.03851.01390.84380.98060.92881.06660.95950.82931.2896
SGAI 0.97981.00130.97780.92230.98051.04860.81080.9511.16120.984
LVGI 0.93261.0230.74541.73040.78040.7181.7190.96950.95490.904
TATA -0.0081-0.0409-0.05710.0039-0.036-0.0189-0.0288-0.0521-0.0169-0.1128
M-score -2.49-2.40-2.64-2.24-2.40-2.56-2.41-2.87-2.58-3.05

Mantech International Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.98870.95841.10581.06111.0661.12020.98130.87270.74540.7613
GMI 1.02581.00441.01681.02281.05481.08721.04811.02590.99940.9458
AQI 1.13761.10210.99620.99820.96860.96610.94350.98481.16121.2105
SGI 0.97280.91550.89980.89670.92170.92360.89460.82930.78410.7598
DEPI 0.42550.50330.82931.15541.42741.36791.28961.13051.0140.964
SGAI 1.04931.13841.16121.14511.07110.99830.9841.01351.08261.1432
LVGI 0.83310.90640.95490.90780.90930.92580.9040.8910.69260.5913
TATA -0.0055-0.0696-0.0169-0.0229-0.021-0.0131-0.1128-0.1239-0.1168-0.1291
M-score -2.49-2.93-2.58-2.59-2.50-2.40-3.05-3.27-3.30-3.36
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