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Mattersight Corp (NAS:MATR)
Beneish M-Score
-3.62 (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 -3.62 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: -3.62

-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 * 0.7837+0.528 * 1.0102+0.404 * 0.8506+0.892 * 1.1415+0.115 * 0.8821
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1643+4.679 * -0.2109-0.327 * 0.9512
=-3.62

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $5.74 Mil.
Revenue was 9.074 + 10.053 + 10.372 + 10.482 = $39.98 Mil.
Gross Profit was 5.879 + 6.807 + 7.479 + 7.943 = $28.11 Mil.
Total Current Assets was $27.02 Mil.
Total Assets was $42.66 Mil.
Property, Plant and Equipment(Net PPE) was $8.98 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.55 Mil.
Selling, General & Admin. Expense(SGA) was $28.38 Mil.
Total Current Liabilities was $19.37 Mil.
Long-Term Debt was $8.21 Mil.
Net Income was -6.2 + -5.821 + -4.361 + -3.939 = $-20.32 Mil.
Non Operating Income was 0 + 0 + 0 + -0.022 = $-0.02 Mil.
Cash Flow from Operations was -5.23 + -5.373 + -3.564 + 2.863 = $-11.30 Mil.
Accounts Receivable was $6.41 Mil.
Revenue was 9.742 + 9.316 + 8.286 + 7.68 = $35.02 Mil.
Gross Profit was 7.073 + 6.741 + 5.78 + 5.281 = $24.88 Mil.
Total Current Assets was $25.05 Mil.
Total Assets was $39.99 Mil.
Property, Plant and Equipment(Net PPE) was $7.60 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.86 Mil.
Selling, General & Admin. Expense(SGA) was $21.35 Mil.
Total Current Liabilities was $25.45 Mil.
Long-Term Debt was $1.73 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)
=(5.737 / 39.981) / (6.413 / 35.024)
=0.14349316 / 0.18310302
=0.7837

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)
=(24.875 / 35.024) / (28.108 / 39.981)
=0.71022727 / 0.70303394
=1.0102

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 - (27.015 + 8.98) / 42.659) / (1 - (25.05 + 7.595) / 39.989)
=0.15621557 / 0.1836505
=0.8506

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
=39.981 / 35.024
=1.1415

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))
=(3.859 / (3.859 + 7.595)) / (5.549 / (5.549 + 8.98))
=0.33691287 / 0.3819258
=0.8821

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)
=(28.379 / 39.981) / (21.352 / 35.024)
=0.70981216 / 0.6096391
=1.1643

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)
=((8.211 + 19.366) / 42.659) / ((1.725 + 25.451) / 39.989)
=0.6464521 / 0.67958689
=0.9512

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
=(-20.321 - -0.022 - -11.304) / 42.659
=-0.2109

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 -3.62 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

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 1.04611.1290.94791.27820.46041.64091.31451.18940.82381.0833
SGI 1.13691.13670.89321.11420.30390.9421.16391.01860.8791.3164
DEPI 1.89851.03520.83170.94170.9570.98841.0411.04951.01441.0869
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.77810.87071.35531.63241.84362.4041.14710.96681.28210.7837
GMI 0.89960.90670.9120.98550.97910.98010.96680.94190.9731.0102
AQI 1.36451.04250.7920.82380.90721.01851.05591.08330.6230.8506
SGI 0.98350.96690.92190.8790.99131.08481.20851.31641.24611.1415
DEPI 1.06831.04421.04541.01441.01141.16071.12041.08691.04660.8821
SGAI 0.57570.48860.43591.23921.08191.26971.50480.90671.09781.1643
LVGI 0.88361.12870.72061.05371.3161.06280.81370.74370.97120.9512
TATA -0.355-0.3415-0.2184-0.2236-0.1863-0.1828-0.174-0.2301-0.2011-0.2109
M-score -4.15-4.21-3.18-3.19-2.75-2.02-2.98-3.19-3.11-3.62
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