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Mitcham Industries Inc (NAS:MIND)
Beneish M-Score
-2.94 (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 -2.94 suggests that the company is not a manipulator.

MIND' s 10-Year Beneish M-Score Range
Min: -24.03   Max: 18.79
Current: -2.94

-24.03
18.79

During the past 13 years, the highest Beneish M-Score of Mitcham Industries Inc was 18.79. The lowest was -24.03. And the median was -2.91.


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 * 1.2833+0.528 * 1.043+0.404 * 1.7729+0.892 * 0.948+0.115 * 0.9589
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0832+4.679 * -0.0828-0.327 * 2.8333
=-2.94

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $30.43 Mil.
Revenue was 22.906 + 19.545 + 25.732 + 23.647 = $91.83 Mil.
Gross Profit was 7.007 + 3.237 + 11.243 + 8.165 = $29.65 Mil.
Total Current Assets was $66.74 Mil.
Total Assets was $207.23 Mil.
Property, Plant and Equipment(Net PPE) was $112.80 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.66 Mil.
Selling, General & Admin. Expense(SGA) was $24.45 Mil.
Total Current Liabilities was $13.69 Mil.
Long-Term Debt was $32.14 Mil.
Net Income was -0.397 + -3.347 + 3.737 + 1.782 = $1.78 Mil.
Non Operating Income was -0.387 + 0.058 + 0.189 + 0.009 = $-0.13 Mil.
Cash Flow from Operations was -2.607 + 5.092 + 14.058 + 2.525 = $19.07 Mil.
Accounts Receivable was $25.01 Mil.
Revenue was 20.275 + 20.895 + 27.291 + 28.401 = $96.86 Mil.
Gross Profit was 4.953 + 4.3 + 14.597 + 8.773 = $32.62 Mil.
Total Current Assets was $67.73 Mil.
Total Assets was $188.57 Mil.
Property, Plant and Equipment(Net PPE) was $106.63 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.91 Mil.
Selling, General & Admin. Expense(SGA) was $23.81 Mil.
Total Current Liabilities was $11.58 Mil.
Long-Term Debt was $3.14 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)
=(30.43 / 91.83) / (25.012 / 96.862)
=0.33137319 / 0.25822304
=1.2833

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)
=(3.237 / 96.862) / (7.007 / 91.83)
=0.33679874 / 0.32290101
=1.043

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 - (66.74 + 112.803) / 207.228) / (1 - (67.731 + 106.631) / 188.572)
=0.13359681 / 0.07535583
=1.7729

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
=91.83 / 96.862
=0.948

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))
=(31.911 / (31.911 + 106.631)) / (35.661 / (35.661 + 112.803))
=0.23033448 / 0.24019964
=0.9589

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)
=(24.447 / 91.83) / (23.805 / 96.862)
=0.26622019 / 0.24576201
=1.0832

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)
=((32.141 + 13.694) / 207.228) / ((3.14 + 11.581) / 188.572)
=0.2211815 / 0.07806567
=2.8333

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
=(1.775 - -0.131 - 19.068) / 207.228
=-0.0828

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 -2.94 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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.90790.73351.44330.69381.1081.50640.89271.26930.69661.4502
GMI 0.89971.43731.12371.00730.95891.48730.880.72941.43221.0282
AQI 0.441125.85961.03330.80860.9081.17830.82930.61971.06980.9818
SGI 1.17681.31181.4141.56250.87430.82581.29351.58110.92780.8799
DEPI 1.01611.12671.54231.10140.89230.93060.98551.15660.85331.1699
SGAI 1.18231.02991.11840.7521.1191.03660.86490.80611.13771.1935
LVGI 0.74470.97171.61860.83360.95941.03111.19820.65710.38852.3354
TATA -0.21610.00460.0676-0.1883-0.0852-0.1191-0.1867-0.0596-0.1408-0.0812
M-score -3.647.87-1.47-3.11-2.97-2.42-3.37-2.13-3.07-3.00

Mitcham Industries Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.8070.57260.69661.10331.27051.57091.45021.11361.33141.2833
GMI 0.8711.08251.43221.3911.44991.30771.02821.13991.08771.043
AQI 0.71770.91681.06980.94011.221.1870.98181.14591.81121.7729
SGI 1.40321.18610.92780.80480.77510.85480.87990.93020.93740.948
DEPI 0.91640.84950.85330.84330.91370.97521.16991.13071.09190.9589
SGAI 0.82990.96911.13691.31141.38551.21921.19431.09841.10311.0832
LVGI 0.81580.54920.38850.33920.42250.71132.33541.97534.01622.8333
TATA -0.0729-0.0988-0.1408-0.1039-0.1309-0.1125-0.0812-0.13-0.1176-0.0828
M-score -2.74-3.02-3.07-2.72-2.61-2.32-3.00-3.23-3.40-2.94
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