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Mitcham Industries Inc (NAS:MIND)
Beneish M-Score
-3.26 (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 -3.26 suggests that the company is not a manipulator.

MIND' s 10-Year Beneish M-Score Range
Min: -24   Max: 19.56
Current: -3.26

-24
19.56

During the past 13 years, the highest Beneish M-Score of Mitcham Industries Inc was 19.56. The lowest was -24.00. And the median was -2.81.


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 * 1.0874+0.528 * 1.1399+0.404 * 1.1459+0.892 * 0.9302+0.115 * 1.1307
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0984+4.679 * -0.13-0.327 * 1.9753
=-3.26

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $30.40 Mil.
Revenue was 25.732 + 23.647 + 20.275 + 20.895 = $90.55 Mil.
Gross Profit was 11.243 + 8.165 + 4.953 + 4.3 = $28.66 Mil.
Total Current Assets was $56.53 Mil.
Total Assets was $195.05 Mil.
Property, Plant and Equipment(Net PPE) was $124.30 Mil.
Depreciation, Depletion and Amortization(DDA) was $32.29 Mil.
Selling, General & Admin. Expense(SGA) was $23.75 Mil.
Total Current Liabilities was $6.20 Mil.
Long-Term Debt was $15.13 Mil.
Net Income was 3.737 + 1.782 + -2.628 + -0.693 = $2.20 Mil.
Non Operating Income was 0.189 + 0.009 + -0.517 + 1 = $0.68 Mil.
Cash Flow from Operations was 14.058 + 2.525 + 2.729 + 7.571 = $26.88 Mil.
Accounts Receivable was $30.05 Mil.
Revenue was 27.291 + 28.401 + 18.573 + 23.08 = $97.35 Mil.
Gross Profit was 14.597 + 8.773 + 4.354 + 7.4 = $35.12 Mil.
Total Current Assets was $66.87 Mil.
Total Assets was $190.84 Mil.
Property, Plant and Equipment(Net PPE) was $111.83 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.01 Mil.
Selling, General & Admin. Expense(SGA) was $23.24 Mil.
Total Current Liabilities was $8.37 Mil.
Long-Term Debt was $2.20 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)
=(30.398 / 90.549) / (30.054 / 97.345)
=0.33570774 / 0.30873697
=1.0874

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)
=(8.165 / 97.345) / (11.243 / 90.549)
=0.36081976 / 0.31652475
=1.1399

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 - (56.534 + 124.296) / 195.049) / (1 - (66.865 + 111.829) / 190.835)
=0.07289963 / 0.06362041
=1.1459

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
=90.549 / 97.345
=0.9302

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))
=(34.008 / (34.008 + 111.829)) / (32.293 / (32.293 + 124.296))
=0.23319185 / 0.20622777
=1.1307

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)
=(23.749 / 90.549) / (23.244 / 97.345)
=0.26227788 / 0.2387796
=1.0984

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)
=((15.127 + 6.203) / 195.049) / ((2.199 + 8.366) / 190.835)
=0.10935714 / 0.05536196
=1.9753

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
=(2.198 - 0.681 - 26.883) / 195.049
=-0.13

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 -3.26 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 0.95090.90121.12880.74211.16251.43120.88671.10730.71441.375
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 1.00261.12671.54231.10140.89230.93060.98551.15660.85331.1699
SGAI 1.18231.02991.11840.7521.30430.88930.86490.80611.13771.1935
LVGI 0.74470.97171.61860.83360.95941.03111.19820.65710.38852.3354
TATA -0.36040.00460.0676-0.1883-0.0908-0.1191-0.1867-0.0596-0.1408-0.0812
M-score -4.288.02-1.76-3.06-2.98-2.47-3.37-2.27-3.05-3.06

Mitcham Industries Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 1.10730.84270.7710.59960.71441.08321.19921.43651.3751.0874
GMI 0.72940.82330.8711.08251.43221.3911.44991.30771.02821.1399
AQI 0.61970.82980.71770.91681.06980.94011.221.1870.98181.1459
SGI 1.58111.48671.40321.18610.92780.80480.77510.85480.87990.9302
DEPI 1.15660.99320.91640.84950.85330.84330.91370.97521.16991.1307
SGAI 0.80610.86050.82990.96911.13691.31141.38551.21921.19431.0984
LVGI 0.65710.50020.81580.54920.38850.33920.42250.71132.33541.9753
TATA -0.0596-0.0802-0.0729-0.0988-0.1408-0.1039-0.1309-0.1125-0.0812-0.13
M-score -2.27-2.54-2.77-3.00-3.05-2.74-2.67-2.44-3.07-3.26
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