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Mattersight Corp (NAS:MATR)
Beneish M-Score
-4.44 (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 -4.44 suggests that the company is not a manipulator.

MATR' s 10-Year Beneish M-Score Range
Min: -6.17   Max: 1.39
Current: -4.44

-6.17
1.39

During the past 13 years, the highest Beneish M-Score of Mattersight Corp was 1.39. The lowest was -6.17. And the median was -3.64.


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 * 0.9114+0.528 * 0.8921+0.404 * 1.1894+0.892 * 1.0186+0.115 * 1.0495
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9391+4.679 * -0.4137-0.327 * 0.9743
=-4.44

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $2.38 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 $0.00 Mil.
Net Income was -1.543 + -2.633 + -3.323 + -3.673 = $-11.17 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -1.507 + 6.32 + -2.396 + -0.867 = $1.55 Mil.
Accounts Receivable was $2.57 Mil.
Revenue was 8.725 + 8.104 + 8.035 + 8.999 = $33.86 Mil.
Gross Profit was 5.227 + 5.007 + 4.799 + 5.509 = $20.54 Mil.
Total Current Assets was $21.65 Mil.
Total Assets was $31.36 Mil.
Property, Plant and Equipment(Net PPE) was $4.73 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.50 Mil.
Selling, General & Admin. Expense(SGA) was $32.09 Mil.
Total Current Liabilities was $14.56 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)
=(2.384 / 34.494) / (2.568 / 33.863)
=0.06911347 / 0.07583498
=0.9114

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)
=(5.725 / 33.863) / (6.89 / 34.494)
=0.6066208 / 0.67997333
=0.8921

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 - (19.779 + 5.158) / 30.749) / (1 - (21.651 + 4.727) / 31.362)
=0.18901428 / 0.15891844
=1.1894

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
=34.494 / 33.863
=1.0186

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))
=(3.5 / (3.5 + 4.727)) / (3.516 / (3.516 + 5.158))
=0.42542847 / 0.40534932
=1.0495

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)
=(30.696 / 34.494) / (32.09 / 33.863)
=0.88989389 / 0.94764197
=0.9391

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 + 13.909) / 30.749) / ((0 + 14.561) / 31.362)
=0.45233991 / 0.46428799
=0.9743

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
=(-11.172 - 0 - 1.55) / 30.749
=-0.4137

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 -4.44 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.43961.32111.08160.70790.92390.86871.44711.57490.74290.9114
GMI 0.75680.89140.88590.88290.87340.88320.90820.91650.93060.8921
AQI 0.48271.64091.23441.39981.46351.31451.35131.23841.1611.1894
SGI 0.60070.9421.07361.14091.1951.16391.06331.0181.00491.0186
DEPI 0.96540.98840.93210.86480.97151.0411.04931.05321.03071.0495
SGAI 1.531.0450.91450.88810.87370.95861.06441.09341.06060.9391
LVGI 0.4730.56130.57141.43521.57261.19031.27331.351.59930.9743
TATA 0.51730.70350.79120.0355-0.0357-0.1348-0.1812-0.2873-0.5741-0.4137
M-score -1.191.391.54-2.50-2.59-3.07-2.86-3.35-5.57-4.44
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