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Mattersight Corp (NAS:MATR)
Beneish M-Score
-2.75 (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 -2.75 suggests that the company is not a manipulator.

MATR' s 10-Year Beneish M-Score Range
Min: -7.62   Max: 1.63
Current: -2.75

-7.62
1.63

During the past 13 years, the highest Beneish M-Score of Mattersight Corp was 1.63. The lowest was -7.62. And the median was -3.19.


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 * 1.8436+0.528 * 0.9811+0.404 * 0.9072+0.892 * 0.9913+0.115 * 1.0114
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1124+4.679 * -0.1863-0.327 * 1.316
=-2.75

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $4.45 Mil.
Revenue was 9.316 + 8.286 + 7.68 + 7.34 = $32.62 Mil.
Gross Profit was 6.741 + 5.78 + 5.281 + 5.031 = $22.83 Mil.
Total Current Assets was $24.95 Mil.
Total Assets was $37.69 Mil.
Property, Plant and Equipment(Net PPE) was $5.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.38 Mil.
Selling, General & Admin. Expense(SGA) was $32.71 Mil.
Total Current Liabilities was $22.24 Mil.
Long-Term Debt was $1.31 Mil.
Net Income was -3.817 + -2.807 + -4.182 + -3.28 = $-14.09 Mil.
Non Operating Income was 0.005 + -0.033 + -0.005 + 0.284 = $0.25 Mil.
Cash Flow from Operations was -4.577 + -3.393 + 2.033 + -1.379 = $-7.32 Mil.
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.



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)
=(4.45 / 32.622) / (2.435 / 32.909)
=0.13641101 / 0.07399192
=1.8436

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)
=(5.78 / 32.909) / (6.741 / 32.622)
=0.68668145 / 0.69992643
=0.9811

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 - (24.945 + 5.148) / 37.694) / (1 - (15.207 + 4.922) / 25.882)
=0.20165013 / 0.22227803
=0.9072

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
=32.622 / 32.909
=0.9913

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))
=(3.293 / (3.293 + 4.922)) / (3.38 / (3.38 + 5.148))
=0.4008521 / 0.39634146
=1.0114

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)
=(32.714 / 32.622) / (29.666 / 32.909)
=1.00282018 / 0.90145553
=1.1124

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)
=((1.307 + 22.242) / 37.694) / ((0 + 12.287) / 25.882)
=0.62474134 / 0.47473147
=1.316

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
=(-14.086 - 0.251 - -7.316) / 37.694
=-0.1863

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 -2.75 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.86871.44711.57490.74290.87930.77810.87071.35531.63241.8436
GMI 0.88320.90820.91650.93060.89210.89960.90860.91390.98770.9811
AQI 1.31451.35131.23841.1611.18941.36451.04250.7920.83090.9072
SGI 1.16391.06331.0181.00491.01860.98350.96690.92190.8790.9913
DEPI 1.0411.04931.05321.03071.04951.06831.04421.04541.00881.0114
SGAI 0.95861.06441.09341.06060.93910.92040.94091.02851.13931.1124
LVGI 1.19031.27331.351.59931.06060.88361.12870.72061.05371.316
TATA -0.1348-0.1812-0.2873-0.5755-0.4097-0.355-0.3415-0.2184-0.2236-0.1863
M-score -3.07-2.86-3.35-5.58-4.48-4.21-4.28-3.28-3.17-2.75
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