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Mitcham Industries Inc (NAS:MIND)
Beneish M-Score
-7.83 (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.

Mitcham Industries Inc has a M-score of -7.83 suggests that the company is not a manipulator.

MIND' s Beneish M-Score Range Over the Past 10 Years
Min: -24.03   Max: 18.78
Current: -7.83

-24.03
18.78

During the past 13 years, the highest Beneish M-Score of Mitcham Industries Inc was 18.78. The lowest was -24.03. And the median was -2.87.


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 Mitcham Industries 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 * 1.0502+0.528 * -4.5423+0.404 * 1.1456+0.892 * 0.6225+0.115 * 0.8745
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4569+4.679 * -0.4323-0.327 * 1.2239
=-7.83

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $18.14 Mil.
Revenue was 11.731 + 11.442 + 15.681 + 7.554 = $46.41 Mil.
Gross Profit was -0.366 + -1.021 + 1.723 + -2.609 = $-2.27 Mil.
Total Current Assets was $37.03 Mil.
Total Assets was $126.50 Mil.
Property, Plant and Equipment(Net PPE) was $68.59 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.36 Mil.
Selling, General & Admin. Expense(SGA) was $21.53 Mil.
Total Current Liabilities was $10.72 Mil.
Long-Term Debt was $14.52 Mil.
Net Income was -6.443 + -26.838 + -5.813 + -5.848 = $-44.94 Mil.
Non Operating Income was 0.451 + -0.94 + -0.445 + 0.325 = $-0.61 Mil.
Cash Flow from Operations was 1.75 + 1.148 + 2.249 + 5.212 = $10.36 Mil.
Accounts Receivable was $27.75 Mil.
Revenue was 17.142 + 14.963 + 22.906 + 19.545 = $74.56 Mil.
Gross Profit was 4.576 + 1.767 + 7.007 + 3.237 = $16.59 Mil.
Total Current Assets was $56.86 Mil.
Total Assets was $178.32 Mil.
Property, Plant and Equipment(Net PPE) was $95.77 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.21 Mil.
Selling, General & Admin. Expense(SGA) was $23.74 Mil.
Total Current Liabilities was $11.71 Mil.
Long-Term Debt was $17.36 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)
=(18.138 / 46.408) / (27.746 / 74.556)
=0.39083779 / 0.37214979
=1.0502

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)
=(16.587 / 74.556) / (-2.273 / 46.408)
=0.22247706 / -0.04897862
=-4.5423

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 - (37.028 + 68.594) / 126.5) / (1 - (56.858 + 95.769) / 178.317)
=0.16504348 / 0.14406927
=1.1456

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
=46.408 / 74.556
=0.6225

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))
=(36.211 / (36.211 + 95.769)) / (31.362 / (31.362 + 68.594))
=0.27436733 / 0.31375805
=0.8745

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)
=(21.525 / 46.408) / (23.735 / 74.556)
=0.46382089 / 0.31835131
=1.4569

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)
=((14.516 + 10.717) / 126.5) / ((17.356 + 11.707) / 178.317)
=0.19947036 / 0.16298502
=1.2239

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
=(-44.942 - -0.609 - 10.359) / 126.5
=-0.4323

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.

Mitcham Industries Inc has a M-score of -7.83 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.

Mitcham Industries Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 1.44330.69381.1081.50640.89271.26930.69661.45021.02591.1609
GMI 1.12371.00730.95891.48730.880.72941.43221.02821.24285.43
AQI 1.03330.80860.9081.17830.82930.61971.06980.98182.12051.0792
SGI 1.4141.56250.87430.82581.29351.58110.92780.87990.90270.6232
DEPI 1.54231.10140.89230.93060.98551.15660.85331.16990.71620.8876
SGAI 1.11840.7521.1191.03660.86490.80611.13771.19351.16811.357
LVGI 1.61860.83360.95941.03111.19820.65710.38852.33541.09651.1955
TATA 0.0676-0.1883-0.0852-0.1191-0.1867-0.0596-0.1408-0.0812-0.1761-0.3971
M-score -1.47-3.11-2.97-2.42-3.37-2.13-3.07-3.00-2.88-2.29

Mitcham Industries Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 1.45021.11361.33141.28331.02591.14480.87391.1151.16091.0502
GMI 1.02821.13991.08771.0431.24281.42271.80223.27465.43-4.5423
AQI 0.98181.14591.81121.77292.12051.97631.37411.42921.07921.1456
SGI 0.87990.93020.93740.9480.90270.82340.70140.60260.62320.6225
DEPI 1.16991.13071.09190.95890.71620.75160.75570.80270.88760.8745
SGAI 1.19431.09841.10311.08321.16811.21381.28841.51831.3571.4569
LVGI 2.33541.97534.01622.83331.09651.49040.70920.58641.19551.2239
TATA -0.0812-0.13-0.1176-0.0828-0.1761-0.1603-0.197-0.2717-0.3971-0.4323
M-score -3.00-3.23-3.40-2.94-2.88-2.86-3.19-2.60-2.29-7.83
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