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GuruFocus has detected 2 Warning Signs with Mantech International Corp $MANT.
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Mantech International Corp (NAS:MANT)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

MANT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77   Max: 1.36
Current: -2.53

-3.77
1.36

During the past 13 years, the highest Beneish M-Score of Mantech International Corp was 1.36. The lowest was -3.77. And the median was -2.53.


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 * 1.0295+0.528 * 1.0225+0.404 * 0.9756+0.892 * 1.0332+0.115 * 1.0142
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9432+4.679 * -0.0247-0.327 * 1.004
=-2.53

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $240 Mil.
Revenue was 394.178 + 415.402 + 401.354 + 390.662 = $1,602 Mil.
Gross Profit was 55.722 + 59.108 + 59.843 + 57.148 = $232 Mil.
Total Current Assets was $421 Mil.
Total Assets was $1,598 Mil.
Property, Plant and Equipment(Net PPE) was $23 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General & Admin. Expense(SGA) was $141 Mil.
Total Current Liabilities was $192 Mil.
Long-Term Debt was $0 Mil.
Net Income was 13.729 + 14.664 + 14.782 + 13.216 = $56 Mil.
Non Operating Income was -0.062 + 0.092 + 0.045 + 0.008 = $0 Mil.
Cash Flow from Operations was 12.613 + 31.965 + 22.09 + 29.096 = $96 Mil.
Accounts Receivable was $225 Mil.
Revenue was 402.401 + 393.008 + 384.378 + 370.33 = $1,550 Mil.
Gross Profit was 57.087 + 58.017 + 58.135 + 56.181 = $229 Mil.
Total Current Assets was $369 Mil.
Total Assets was $1,506 Mil.
Property, Plant and Equipment(Net PPE) was $22 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General & Admin. Expense(SGA) was $145 Mil.
Total Current Liabilities was $180 Mil.
Long-Term Debt was $0 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)
=(239.606 / 1601.596) / (225.262 / 1550.117)
=0.14960452 / 0.14531935
=1.0295

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)
=(229.42 / 1550.117) / (231.821 / 1601.596)
=0.14800173 / 0.14474374
=1.0225

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 - (421.313 + 23.121) / 1598.464) / (1 - (369.172 + 22.439) / 1506.424)
=0.72196183 / 0.74003932
=0.9756

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
=1601.596 / 1550.117
=1.0332

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))
=(30.276 / (30.276 + 22.439)) / (30.191 / (30.191 + 23.121))
=0.57433368 / 0.56630777
=1.0142

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)
=(140.858 / 1601.596) / (144.534 / 1550.117)
=0.08794852 / 0.0932407
=0.9432

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 + 191.654) / 1598.464) / ((0 + 179.896) / 1506.424)
=0.11989885 / 0.11941923
=1.004

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
=(56.391 - 0.083 - 95.764) / 1598.464
=-0.0247

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 -2.53 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 local exchange's currency.

Mantech International Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.12090.93410.90781.02760.70911.10580.20275.40180.83371.0295
GMI 1.05070.98880.93891.1461.04681.01681.04810.96680.95131.0225
AQI 1.20040.95140.94471.09530.99220.99620.94351.28091.05580.9756
SGI 1.27341.2921.07991.28891.10210.89980.89460.76790.87381.0332
DEPI 0.84380.98060.92881.06660.95950.82931.28960.92810.94341.0142
SGAI 0.92230.98051.04860.81080.9511.16120.9841.16121.06740.9432
LVGI 1.73040.78040.7181.7190.96950.95490.9040.52170.79421.004
TATA 0.0039-0.036-0.0189-0.0288-0.0521-0.0169-0.1128-0.0466-0.0692-0.0247
M-score -2.24-2.40-2.56-2.41-2.87-2.58-3.771.36-3.02-2.53

Mantech International Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.76135.40180.84951.11710.86190.83370.90060.84931.09151.0295
GMI 0.94580.96680.93840.91790.93670.95130.99461.02371.04091.0225
AQI 1.21051.28091.2151.07241.06291.05581.03951.0231.00250.9756
SGI 0.75980.76790.79970.81710.84090.87380.9280.9841.03251.0332
DEPI 0.9640.92810.93510.93220.94240.94340.95660.94940.97951.0142
SGAI 1.14321.16121.15141.13511.12571.06741.01460.96340.91450.9432
LVGI 0.59130.52170.520.79810.84140.79420.88390.72680.77141.004
TATA -0.1291-0.0466-0.0207-0.037-0.0484-0.0692-0.0696-0.07-0.0217-0.0247
M-score -3.361.36-2.72-2.69-2.96-3.02-2.92-2.85-2.36-2.53
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