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Mattersight Corp (NAS:MATR)
Beneish M-Score
-3.17 (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 -3.17 suggests that the company is not a manipulator.

MATR' s 10-Year Beneish M-Score Range
Min: -6.17   Max: 1.63
Current: -3.17

-6.17
1.63

During the past 13 years, the highest Beneish M-Score of Mattersight Corp was 1.63. The lowest was -6.17. And the median was -3.41.


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 * 1.6324+0.528 * 0.9877+0.404 * 0.8309+0.892 * 0.879+0.115 * 1.0088
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1393+4.679 * -0.2236-0.327 * 1.0537
=-3.17

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $3.30 Mil.
Revenue was 8.286 + 7.68 + 7.34 + 7.013 = $30.32 Mil.
Gross Profit was 5.78 + 5.281 + 5.031 + 4.78 = $20.87 Mil.
Total Current Assets was $22.38 Mil.
Total Assets was $32.08 Mil.
Property, Plant and Equipment(Net PPE) was $4.66 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.13 Mil.
Selling, General & Admin. Expense(SGA) was $30.74 Mil.
Total Current Liabilities was $15.47 Mil.
Long-Term Debt was $1.18 Mil.
Net Income was -2.807 + -4.182 + -3.28 + -3.963 = $-14.23 Mil.
Non Operating Income was -0.033 + -0.005 + 0.284 + -0.37 = $-0.12 Mil.
Cash Flow from Operations was -3.393 + 2.033 + -1.351 + -4.223 = $-6.93 Mil.
Accounts Receivable was $2.30 Mil.
Revenue was 9.267 + 8.665 + 7.964 + 8.598 = $34.49 Mil.
Gross Profit was 6.89 + 5.725 + 5.203 + 5.637 = $23.46 Mil.
Total Current Assets was $19.78 Mil.
Total Assets was $30.75 Mil.
Property, Plant and Equipment(Net PPE) was $5.16 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.52 Mil.
Selling, General & Admin. Expense(SGA) was $30.70 Mil.
Total Current Liabilities was $13.91 Mil.
Long-Term Debt was $1.23 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)
=(3.3 / 30.319) / (2.3 / 34.494)
=0.10884264 / 0.06667826
=1.6324

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)
=(5.281 / 34.494) / (5.78 / 30.319)
=0.67997333 / 0.68841321
=0.9877

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 - (22.383 + 4.657) / 32.078) / (1 - (19.779 + 5.158) / 30.749)
=0.15705468 / 0.18901428
=0.8309

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
=30.319 / 34.494
=0.879

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))
=(3.516 / (3.516 + 5.158)) / (3.128 / (3.128 + 4.657))
=0.40534932 / 0.40179833
=1.0088

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)
=(30.739 / 30.319) / (30.696 / 34.494)
=1.0138527 / 0.88989389
=1.1393

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)
=((1.176 + 15.469) / 32.078) / ((1.233 + 13.909) / 30.749)
=0.51889145 / 0.49243878
=1.0537

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
=(-14.232 - -0.124 - -6.934) / 32.078
=-0.2236

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 -3.17 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.88691.04360.77720.98940.83540.60061.5860.86870.87931.6324
GMI 1.14071.25120.60061.0121.02730.62620.89140.88320.89210.9855
AQI 0.99451.04611.1290.94791.27820.46041.64091.31451.18940.8309
SGI 1.08871.13691.13670.89321.11420.30390.9421.16391.01860.879
DEPI 0.85631.89851.03520.83170.94170.9570.98841.0411.04951.0088
SGAI 0.91661.09281.68141.03590.73152.63321.0450.95860.93911.1411
LVGI 0.98281.17251.37981.00221.2271.35060.56131.19031.06061.0537
TATA -0.1154-0.1147-0.335-0.3148-0.2601-0.15570.7035-0.1348-0.4097-0.2236
M-score -2.97-2.67-4.53-4.10-3.65-5.011.64-3.07-4.48-3.17

Mattersight Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.92390.86871.44711.57490.74290.87930.77810.87071.35531.6324
GMI 0.87340.88320.90820.91650.93060.89210.89960.90860.91390.9877
AQI 1.46351.31451.35131.23841.1611.18941.36451.04250.7920.8309
SGI 1.1951.16391.06331.0181.00491.01860.98350.96690.92190.879
DEPI 0.97151.0411.04931.05321.03071.04951.06831.04421.04541.0088
SGAI 0.87370.95861.06441.09341.06060.93910.92040.94091.02851.1393
LVGI 1.57261.19031.27331.351.59931.06060.88361.12870.72061.0537
TATA -0.0357-0.1348-0.1812-0.2873-0.5755-0.4097-0.354-0.3415-0.2184-0.2236
M-score -2.59-3.07-2.86-3.35-5.58-4.48-4.20-4.28-3.28-3.17
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