Switch to:
Mattersight Corp (NAS:MATR)
Beneish M-Score
-2.34 (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 -2.34 suggests that the company is not a manipulator.

MATR' s Beneish M-Score Range Over the Past 10 Years
Min: -7.62   Max: 1.63
Current: -2.34

-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 * 1.3493+0.528 * 1.0708+0.404 * 1.4456+0.892 * 1.0551+0.115 * 0.9856
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1697+4.679 * -0.0134-0.327 * 2.0768
=-2.34

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $5.45 Mil.
Revenue was 10.412 + 9.074 + 10.053 + 10.372 = $39.91 Mil.
Gross Profit was 6.969 + 5.879 + 6.807 + 7.479 = $27.13 Mil.
Total Current Assets was $26.80 Mil.
Total Assets was $47.07 Mil.
Property, Plant and Equipment(Net PPE) was $9.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.63 Mil.
Selling, General & Admin. Expense(SGA) was $29.04 Mil.
Total Current Liabilities was $13.61 Mil.
Long-Term Debt was $23.22 Mil.
Net Income was -5.838 + -6.2 + -5.821 + -4.361 = $-22.22 Mil.
Non Operating Income was 0.066 + 0 + 0 + -0.004 = $0.06 Mil.
Cash Flow from Operations was -7.485 + -5.23 + -5.373 + -3.564 = $-21.65 Mil.
Accounts Receivable was $3.83 Mil.
Revenue was 10.482 + 9.742 + 9.316 + 8.286 = $37.83 Mil.
Gross Profit was 7.943 + 7.073 + 6.741 + 5.78 = $27.54 Mil.
Total Current Assets was $30.37 Mil.
Total Assets was $45.28 Mil.
Property, Plant and Equipment(Net PPE) was $7.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.46 Mil.
Selling, General & Admin. Expense(SGA) was $23.53 Mil.
Total Current Liabilities was $15.56 Mil.
Long-Term Debt was $1.50 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)
=(5.447 / 39.911) / (3.826 / 37.826)
=0.13647867 / 0.10114736
=1.3493

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)
=(27.537 / 37.826) / (27.134 / 39.911)
=0.72799133 / 0.67986269
=1.0708

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 - (26.802 + 9.743) / 47.066) / (1 - (30.374 + 7.901) / 45.276)
=0.22353716 / 0.15462938
=1.4456

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
=39.911 / 37.826
=1.0551

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))
=(4.463 / (4.463 + 7.901)) / (5.63 / (5.63 + 9.743))
=0.36096732 / 0.3662265
=0.9856

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)
=(29.035 / 39.911) / (23.525 / 37.826)
=0.72749367 / 0.62192672
=1.1697

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)
=((23.224 + 13.605) / 47.066) / ((1.495 + 15.564) / 45.276)
=0.78249692 / 0.37677798
=2.0768

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
=(-22.22 - 0.062 - -21.652) / 47.066
=-0.0134

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 -2.34 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 local exchange's currency.

Mattersight Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04360.77720.98940.83540.60061.5860.86870.87931.63240.9668
GMI 1.25120.60061.0121.02730.62620.89140.88320.89210.98550.942
AQI 1.04611.1290.94791.27820.46041.64091.31451.18940.82381.0796
SGI 1.13691.13670.89321.11420.30390.9421.16391.01860.8791.3164
DEPI 1.89851.03520.83170.94170.9570.98841.0411.04951.01441.0887
SGAI 1.09281.68141.03590.73152.63321.0450.95860.59911.05971.0602
LVGI 1.17251.37981.00221.17871.40590.56131.19031.06061.05370.7437
TATA -0.1261-0.335-0.3148-0.2601-0.15570.7035-0.1348-0.4097-0.2236-0.2301
M-score -2.73-4.53-4.10-3.64-5.031.64-3.07-4.42-3.16-3.22

Mattersight Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.87071.35531.63241.84362.4041.14710.96681.28210.78371.3493
GMI 0.90670.9120.98550.97910.98010.96680.94190.9731.01021.0708
AQI 1.04250.7920.82380.90721.01851.05591.07960.6230.85061.4456
SGI 0.96690.92190.8790.99131.08481.20851.31641.24611.14151.0551
DEPI 1.04421.04541.01441.01141.16071.07781.08871.04660.88210.9856
SGAI 0.48860.43591.23921.08191.26971.50480.90671.09781.16431.1697
LVGI 1.12870.72061.05371.3161.06280.81370.74370.97120.95122.0768
TATA -0.3415-0.2184-0.2236-0.1863-0.1828-0.1741-0.23-0.201-0.2108-0.0134
M-score -4.21-3.18-3.19-2.75-2.02-2.99-3.19-3.11-3.62-2.34
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)
FEEDBACK