MFI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
MicroFinancial Inc has a M-score of -4.83 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of MicroFinancial Inc was -4.13. The lowest was -518.78. And the median was -4.65.
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 MicroFinancial Inc 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||+||0.528 * 1||+||0.404 * 0.9984||+||0.892 * 1.0423||+||0.115 * 0.9214|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.008||+||4.679 * -0.5116||-||0.327 * 0.9561|
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $0.00 Mil.|
Revenue was 15.698 + 15.806 + 15.743 + 15.674 = $62.92 Mil.
Gross Profit was 15.698 + 15.806 + 15.743 + 15.674 = $62.92 Mil.
Total Current Assets was $4.07 Mil.
Total Assets was $171.51 Mil.
Property, Plant and Equipment(Net PPE) was $1.36 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.62 Mil.
Selling, General & Admin. Expense(SGA) was $18.67 Mil.
Total Current Liabilities was $82.11 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 2.112 + 2.451 + 2.58 + 2.466 = $9.61 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 26.549 + 22.971 + 24.298 + 23.532 = $97.35 Mil.
|Accounts Receivable was $0.00 Mil.
Revenue was 15.295 + 15.34 + 15.037 + 14.695 = $60.37 Mil.
Gross Profit was 15.295 + 15.34 + 15.037 + 14.695 = $60.37 Mil.
Total Current Assets was $3.43 Mil.
Total Assets was $168.15 Mil.
Property, Plant and Equipment(Net PPE) was $1.62 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.65 Mil.
Selling, General & Admin. Expense(SGA) was $17.77 Mil.
Total Current Liabilities was $84.20 Mil.
Long-Term Debt was $0.00 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(0 / 62.921)||/||(0 / 60.367)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(15.806 / 60.367)||/||(15.698 / 62.921)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (4.065 + 1.36) / 171.514)||/||(1 - (3.434 + 1.619) / 168.148)|
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.
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))|
|=||(4.652 / (4.652 + 1.619))||/||(5.617 / (5.617 + 1.36))|
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)|
|=||(18.672 / 62.921)||/||(17.772 / 60.367)|
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 + 82.109) / 171.514)||/||((0 + 84.198) / 168.148)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(9.609 - 0||-||97.35)||/||171.514|
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.
MicroFinancial Inc has a M-score of -4.83 suggests that the company will not be a manipulator.
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
MicroFinancial Inc Annual Data
MicroFinancial Inc Quarterly Data