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Mattersight Corp (NAS:MATR)
Beneish M-Score
-4.22 (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 -4.22 suggests that the company is not a manipulator.

MATR' s 10-Year Beneish M-Score Range
Min: -7.62   Max: 1.54
Current: -4.22

-7.62
1.54

During the past 13 years, the highest Beneish M-Score of Mattersight Corp was 1.54. The lowest was -7.62. And the median was -3.18.


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 * 0.7781+0.528 * 0.8996+0.404 * 1.3645+0.892 * 0.9835+0.115 * 1.0683
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9204+4.679 * -0.3588-0.327 * 0.8836
=-4.22

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $2.44 Mil.
Revenue was 7.013 + 9.267 + 8.665 + 7.964 = $32.91 Mil.
Gross Profit was 4.78 + 6.89 + 5.725 + 5.203 = $22.60 Mil.
Total Current Assets was $15.21 Mil.
Total Assets was $25.88 Mil.
Property, Plant and Equipment(Net PPE) was $4.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.29 Mil.
Selling, General & Admin. Expense(SGA) was $29.67 Mil.
Total Current Liabilities was $12.29 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -3.963 + -1.543 + -2.633 + -3.323 = $-11.46 Mil.
Non Operating Income was -0.37 + 0 + 0 + 0 = $-0.37 Mil.
Cash Flow from Operations was -4.223 + -1.507 + 6.32 + -2.396 = $-1.81 Mil.
Accounts Receivable was $3.18 Mil.
Revenue was 8.598 + 8.725 + 8.104 + 8.035 = $33.46 Mil.
Gross Profit was 5.637 + 5.227 + 5.007 + 4.799 = $20.67 Mil.
Total Current Assets was $20.42 Mil.
Total Assets was $30.14 Mil.
Property, Plant and Equipment(Net PPE) was $4.81 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.60 Mil.
Selling, General & Admin. Expense(SGA) was $32.77 Mil.
Total Current Liabilities was $16.19 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)
=(2.435 / 32.909) / (3.182 / 33.462)
=0.07399192 / 0.09509294
=0.7781

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)
=(6.89 / 33.462) / (4.78 / 32.909)
=0.61771562 / 0.68668145
=0.8996

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 - (15.207 + 4.922) / 25.882) / (1 - (20.421 + 4.805) / 30.135)
=0.22227803 / 0.16290028
=1.3645

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
=32.909 / 33.462
=0.9835

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))
=(3.599 / (3.599 + 4.805)) / (3.293 / (3.293 + 4.922))
=0.42824845 / 0.4008521
=1.0683

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)
=(29.666 / 32.909) / (32.772 / 33.462)
=0.90145553 / 0.97937959
=0.9204

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 + 12.287) / 25.882) / ((0 + 16.191) / 30.135)
=0.47473147 / 0.53728223
=0.8836

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
=(-11.462 - -0.37 - -1.806) / 25.882
=-0.3588

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 -4.22 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.

Mattersight Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.26410.88691.04360.77720.98940.83540.7211.32110.86870.9114
GMI 0.83421.14071.25120.60061.0121.02730.62620.89140.88320.8921
AQI 2.1680.99451.04611.1290.94791.27820.46041.64091.31451.1894
SGI 1.15971.08871.13691.13670.89321.11420.30390.9421.16391.0186
DEPI 0.84970.85631.89851.03520.83170.94170.9570.98841.0411.0495
SGAI 0.67430.91661.09281.68141.03590.73152.63321.0450.95860.9391
LVGI 1.17050.98281.17251.37981.00221.2271.35060.56131.19030.9743
TATA -0.0572-0.1154-0.1147-0.335-0.3148-0.2601-0.15570.7035-0.1348-0.4137
M-score -1.99-2.97-2.67-4.53-4.10-3.65-4.901.39-3.07-4.44

Mattersight Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.32111.08160.70790.92390.86871.44711.57490.74290.91140.7781
GMI 0.89140.88590.88290.87340.88320.90820.91650.93060.89210.8996
AQI 1.64091.23441.39981.46351.31451.35131.23841.1611.18941.3645
SGI 0.9421.07361.14091.1951.16391.06331.0181.00491.01860.9835
DEPI 0.98840.93210.86480.97151.0411.04931.05321.03071.04951.0683
SGAI 1.0450.91450.88810.87370.95861.06441.09341.06060.93910.9204
LVGI 0.56130.57141.43521.57261.19031.27331.351.59930.97430.8836
TATA 0.70350.79120.0355-0.0357-0.1348-0.1812-0.2873-0.5741-0.4137-0.3588
M-score 1.391.54-2.50-2.59-3.07-2.86-3.35-5.57-4.44-4.22
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