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Mattersight Corp (NAS:MATR)
Beneish M-Score
-3.21 (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 -3.21 suggests that the company is not a manipulator.

MATR' s Beneish M-Score Range Over the Past 10 Years
Min: -6.17   Max: 1.63
Current: -3.21

-6.17
1.63

During the past 13 years, the highest Beneish M-Score of Mattersight Corp was 1.63. The lowest was -6.17. And the median was -3.21.


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 * 0.9668+0.528 * 0.9419+0.404 * 1.0833+0.892 * 1.3164+0.115 * 1.125
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.028+4.679 * -0.2301-0.327 * 0.7437
=-3.21

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $4.20 Mil.
Revenue was 10.372 + 10.482 + 9.742 + 9.316 = $39.91 Mil.
Gross Profit was 7.479 + 7.943 + 7.073 + 6.741 = $29.24 Mil.
Total Current Assets was $25.09 Mil.
Total Assets was $40.40 Mil.
Property, Plant and Equipment(Net PPE) was $8.50 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.68 Mil.
Selling, General & Admin. Expense(SGA) was $28.87 Mil.
Total Current Liabilities was $13.98 Mil.
Long-Term Debt was $1.61 Mil.
Net Income was -4.361 + -3.939 + -3.564 + -3.817 = $-15.68 Mil.
Non Operating Income was 0 + -0.022 + 0.02 + 0.005 = $0.00 Mil.
Cash Flow from Operations was -3.564 + 2.863 + -1.111 + -4.577 = $-6.39 Mil.
Accounts Receivable was $3.30 Mil.
Revenue was 8.286 + 7.68 + 7.34 + 7.013 = $30.32 Mil.
Gross Profit was 5.78 + 5.281 + 5.078 + 4.78 = $20.92 Mil.
Total Current Assets was $22.38 Mil.
Total Assets was $32.08 Mil.
Property, Plant and Equipment(Net PPE) was $4.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.13 Mil.
Selling, General & Admin. Expense(SGA) was $21.33 Mil.
Total Current Liabilities was $15.47 Mil.
Long-Term Debt was $1.18 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)
=(4.2 / 39.912) / (3.3 / 30.319)
=0.10523151 / 0.10884264
=0.9668

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)
=(7.943 / 30.319) / (7.479 / 39.912)
=0.68996339 / 0.73251153
=0.9419

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 - (25.087 + 8.5) / 40.402) / (1 - (22.383 + 4.7) / 32.078)
=0.16867977 / 0.1557142
=1.0833

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
=39.912 / 30.319
=1.3164

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))
=(3.128 / (3.128 + 4.7)) / (4.682 / (4.682 + 8.5))
=0.39959121 / 0.35518131
=1.125

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)
=(28.867 / 39.912) / (21.331 / 30.319)
=0.72326619 / 0.70355223
=1.028

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)
=((1.614 + 13.977) / 40.402) / ((1.176 + 15.469) / 32.078)
=0.38589674 / 0.51889145
=0.7437

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
=(-15.681 - 0.003 - -6.389) / 40.402
=-0.2301

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 -3.21 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.74290.87930.77810.87071.35531.63241.84362.4041.14710.9668
GMI 0.93060.89210.89960.90670.9120.98550.97910.98010.96680.9419
AQI 1.1611.18941.36451.04250.7920.82380.90721.01851.05591.0833
SGI 1.00491.01860.98350.96690.92190.8790.99131.08481.20851.3164
DEPI 1.03071.04951.06831.04421.04541.01441.01141.18111.12041.125
SGAI 1.06060.59910.57570.48860.43591.23921.26721.47241.72281.028
LVGI 1.59931.06060.88361.12870.72061.05371.3161.06280.81370.7437
TATA -0.5755-0.4097-0.355-0.3415-0.2184-0.2236-0.1863-0.1828-0.174-0.2301
M-score -5.58-4.42-4.15-4.21-3.18-3.19-2.78-2.05-3.02-3.21
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