Switch to:
Mattersight Corp (NAS:MATR)
Beneish M-Score
-2.95 (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 -2.95 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: -2.95

-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 -3.11.


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 * 1.1471+0.528 * 0.9668+0.404 * 1.0559+0.892 * 1.2085+0.115 * 1.1204
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3584+4.679 * -0.174-0.327 * 0.8137
=-2.95

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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 $4.20 Mil.
Selling, General & Admin. Expense(SGA) was $39.48 Mil.
Total Current Liabilities was $15.56 Mil.
Long-Term Debt was $1.50 Mil.
Net Income was -3.939 + -3.564 + -3.817 + -2.807 = $-14.13 Mil.
Non Operating Income was -0.022 + 0.02 + 0.005 + -0.033 = $-0.03 Mil.
Cash Flow from Operations was 2.863 + -1.111 + -4.577 + -3.393 = $-6.22 Mil.
Accounts Receivable was $2.76 Mil.
Revenue was 7.68 + 7.34 + 7.013 + 9.267 = $31.30 Mil.
Gross Profit was 5.281 + 5.078 + 4.78 + 6.89 = $22.03 Mil.
Total Current Assets was $25.29 Mil.
Total Assets was $35.07 Mil.
Property, Plant and Equipment(Net PPE) was $4.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.96 Mil.
Selling, General & Admin. Expense(SGA) was $24.05 Mil.
Total Current Liabilities was $16.24 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)
=(3.826 / 37.826) / (2.76 / 31.3)
=0.10114736 / 0.08817891
=1.1471

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)
=(7.073 / 31.3) / (7.943 / 37.826)
=0.70380192 / 0.72799133
=0.9668

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 - (30.374 + 7.901) / 45.276) / (1 - (25.29 + 4.647) / 35.073)
=0.15462938 / 0.14643743
=1.0559

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
=37.826 / 31.3
=1.2085

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))
=(2.959 / (2.959 + 4.647)) / (4.203 / (4.203 + 7.901))
=0.38903497 / 0.34724058
=1.1204

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)
=(39.478 / 37.826) / (24.048 / 31.3)
=1.04367366 / 0.76830671
=1.3584

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)
=((1.495 + 15.564) / 45.276) / ((0 + 16.24) / 35.073)
=0.37677798 / 0.46303424
=0.8137

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
=(-14.127 - -0.03 - -6.218) / 45.276
=-0.174

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 -2.95 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 0.98281.17251.37981.00221.17871.40590.56131.19031.06061.0537
TATA -0.1154-0.1147-0.335-0.3148-0.2601-0.15570.7035-0.1348-0.4097-0.2236
M-score -2.97-2.67-4.53-4.10-3.64-5.031.64-3.07-4.48-3.17

Mattersight Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.57490.74290.87930.77810.87071.35531.63241.84362.4041.1471
GMI 0.91650.93060.89210.89960.90670.9120.98550.97910.98010.9668
AQI 1.23841.1611.18941.36451.04250.7920.83090.90721.01851.0559
SGI 1.0181.00491.01860.98350.96690.92190.8790.99131.08481.2085
DEPI 1.05321.03071.04951.06831.04421.04541.00881.01141.18111.1204
SGAI 1.09341.06060.93910.92040.83890.81031.25561.21911.29211.3584
LVGI 1.351.59931.06060.88361.12870.72061.05371.3161.06280.8137
TATA -0.2873-0.5755-0.4097-0.355-0.3415-0.2184-0.2236-0.1863-0.1828-0.174
M-score -3.35-5.58-4.48-4.21-4.27-3.25-3.19-2.77-2.02-2.95
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)

GuruFocus Premium Plus Membership

FEEDBACK