Switch to:
Mattersight Corp (NAS:MATR)
Beneish M-Score
-1.98 (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.

Mattersight Corp has a M-score of -1.98 signals that the company is a manipulator.

MATR' s 10-Year Beneish M-Score Range
Min: -7.62   Max: 2.97
Current: -1.98

-7.62
2.97

During the past 13 years, the highest Beneish M-Score of Mattersight Corp was 2.97. The lowest was -7.62. And the median was -3.15.


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 Mattersight 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 * 2.404+0.528 * 0.9801+0.404 * 1.0185+0.892 * 1.0848+0.115 * 1.1811
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0714+4.679 * -0.1828-0.327 * 1.0628
=-1.98

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $6.41 Mil.
Revenue was 9.742 + 9.316 + 8.286 + 7.68 = $35.02 Mil.
Gross Profit was 7.073 + 6.741 + 5.78 + 5.281 = $24.88 Mil.
Total Current Assets was $25.05 Mil.
Total Assets was $39.99 Mil.
Property, Plant and Equipment(Net PPE) was $7.60 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.76 Mil.
Selling, General & Admin. Expense(SGA) was $30.93 Mil.
Total Current Liabilities was $25.45 Mil.
Long-Term Debt was $1.73 Mil.
Net Income was -3.564 + -3.817 + -2.807 + -4.182 = $-14.37 Mil.
Non Operating Income was 0.02 + 0.005 + -0.033 + -0.005 = $-0.01 Mil.
Cash Flow from Operations was -1.111 + -4.577 + -3.393 + 2.033 = $-7.05 Mil.
Accounts Receivable was $2.46 Mil.
Revenue was 7.34 + 7.013 + 9.267 + 8.665 = $32.29 Mil.
Gross Profit was 5.078 + 4.78 + 6.89 + 5.725 = $22.47 Mil.
Total Current Assets was $20.22 Mil.
Total Assets was $30.59 Mil.
Property, Plant and Equipment(Net PPE) was $4.85 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.12 Mil.
Selling, General & Admin. Expense(SGA) was $26.61 Mil.
Total Current Liabilities was $19.56 Mil.
Long-Term Debt was $0.00 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)
=(6.413 / 35.024) / (2.459 / 32.285)
=0.18310302 / 0.0761654
=2.404

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)
=(6.741 / 32.285) / (7.073 / 35.024)
=0.69608177 / 0.71022727
=0.9801

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 - (25.05 + 7.595) / 39.989) / (1 - (20.22 + 4.854) / 30.59)
=0.1836505 / 0.18032037
=1.0185

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
=35.024 / 32.285
=1.0848

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))
=(3.117 / (3.117 + 4.854)) / (3.759 / (3.759 + 7.595))
=0.39104253 / 0.33107275
=1.1811

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)
=(30.932 / 35.024) / (26.613 / 32.285)
=0.88316583 / 0.8243147
=1.0714

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)
=((1.725 + 25.451) / 39.989) / ((0 + 19.56) / 30.59)
=0.67958689 / 0.63942465
=1.0628

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
=(-14.37 - -0.013 - -7.048) / 39.989
=-0.1828

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.

Mattersight Corp has a M-score of -1.98 signals that the company is likely to 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.

Mattersight Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.88691.04360.77720.98940.83540.21054.52440.86870.87931.6324
GMI 1.14071.25120.60061.0120.9610.91730.65040.88320.89210.9855
AQI 0.99451.04611.1290.94791.27821.29730.58231.31451.18940.8309
SGI 1.08871.13691.13670.89321.11420.86710.33021.16391.01860.879
DEPI 0.85631.89851.03520.83170.94171.00160.94441.0411.04951.0088
SGAI 0.91661.09281.68141.03590.77351.17882.20760.95860.93911.1411
LVGI 0.98281.17251.37981.00221.21481.02990.74351.19031.06061.0537
TATA -0.1154-0.1147-0.335-0.3148-0.2601-0.15570.7035-0.1348-0.4137-0.2236
M-score -2.97-2.67-4.53-4.10-3.69-4.022.97-3.07-4.49-3.17

Mattersight Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.44711.57490.74290.87930.77810.87071.35531.63241.84362.404
GMI 0.90820.91650.93060.89210.89960.90670.9120.98550.97910.9801
AQI 1.35131.23841.1611.18941.36451.04250.7920.83090.90721.0185
SGI 1.06331.0181.00491.01860.98350.96690.92190.8790.99131.0848
DEPI 1.04911.05321.03071.04951.06831.04421.04541.00881.01141.1811
SGAI 1.06441.09341.06060.93910.92040.83890.91951.01941.00241.0714
LVGI 1.27331.351.59931.06060.88361.12870.72061.05371.3161.0628
TATA -0.1812-0.2873-0.5741-0.4137-0.3599-0.3456-0.2232-0.2236-0.1863-0.1828
M-score -2.86-3.35-5.57-4.49-4.23-4.29-3.29-3.15-2.73-1.98
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK