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Mitcham Industries Inc (NAS:MIND)
Beneish M-Score
-3.00 (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 -3.00 suggests that the company is not a manipulator.

MIND' s 10-Year Beneish M-Score Range
Min: -4.98   Max: 18.79
Current: -3

-4.98
18.79

During the past 13 years, the highest Beneish M-Score of Mitcham Industries Inc was 18.79. The lowest was -4.98. And the median was -3.00.


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 * 0.8893+0.528 * 1.2428+0.404 * 2.1205+0.892 * 0.9027+0.115 * 0.7162
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1681+4.679 * -0.1761-0.327 * 1.0965
=-3.00

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $23.69 Mil.
Revenue was 14.963 + 22.906 + 19.545 + 25.732 = $83.15 Mil.
Gross Profit was 1.767 + 7.007 + 3.237 + 11.243 = $23.25 Mil.
Total Current Assets was $54.15 Mil.
Total Assets was $179.61 Mil.
Property, Plant and Equipment(Net PPE) was $100.09 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.99 Mil.
Selling, General & Admin. Expense(SGA) was $24.96 Mil.
Total Current Liabilities was $10.00 Mil.
Long-Term Debt was $23.14 Mil.
Net Income was -9.185 + -0.397 + -3.347 + 3.737 = $-9.19 Mil.
Non Operating Income was -2.628 + -0.387 + 0.058 + 0.189 = $-2.77 Mil.
Cash Flow from Operations was 8.662 + -2.607 + 5.092 + 14.058 = $25.21 Mil.
Accounts Receivable was $29.51 Mil.
Revenue was 23.647 + 20.275 + 20.895 + 27.291 = $92.11 Mil.
Gross Profit was 8.165 + 4.953 + 4.3 + 14.597 = $32.02 Mil.
Total Current Assets was $62.16 Mil.
Total Assets was $205.42 Mil.
Property, Plant and Equipment(Net PPE) was $129.57 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.04 Mil.
Selling, General & Admin. Expense(SGA) was $23.67 Mil.
Total Current Liabilities was $12.44 Mil.
Long-Term Debt was $22.13 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)
=(23.693 / 83.146) / (29.514 / 92.108)
=0.28495658 / 0.32042819
=0.8893

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)
=(7.007 / 92.108) / (1.767 / 83.146)
=0.3475811 / 0.27967671
=1.2428

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 - (54.149 + 100.087) / 179.611) / (1 - (62.16 + 129.573) / 205.419)
=0.14127754 / 0.0666248
=2.1205

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
=83.146 / 92.108
=0.9027

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))
=(31.037 / (31.037 + 129.573)) / (36.986 / (36.986 + 100.087))
=0.19324451 / 0.26982703
=0.7162

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)
=(24.958 / 83.146) / (23.669 / 92.108)
=0.30017078 / 0.25697008
=1.1681

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)
=((23.137 + 10) / 179.611) / ((22.125 + 12.438) / 205.419)
=0.18449315 / 0.1682561
=1.0965

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
=(-9.192 - -2.768 - 25.205) / 179.611
=-0.1761

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 -3.00 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 0.73351.44330.69381.1081.50640.89271.26930.69661.45020.8893
GMI 1.43731.12371.00730.95891.48730.880.72941.43221.02821.2428
AQI 25.85961.03330.80860.9081.17830.82930.61971.06980.98182.1205
SGI 1.31181.4141.56250.87430.82581.29351.58110.92780.87990.9027
DEPI 1.12671.54231.10140.89230.93060.98551.15660.85331.16990.7162
SGAI 1.02991.11840.7521.1191.03660.86490.80611.13771.19351.1681
LVGI 0.97171.61860.83360.95941.03111.19820.65710.38852.33541.0965
TATA 0.00460.0676-0.1883-0.0852-0.1191-0.1867-0.0596-0.1408-0.0812-0.1761
M-score 7.87-1.47-3.11-2.97-2.42-3.37-2.13-3.07-3.00-3.00

Mitcham Industries Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.57260.69661.10331.27051.57091.45021.11361.33141.28330.8893
GMI 1.08251.43221.3911.44991.30771.02821.13991.08771.0431.2428
AQI 0.91681.06980.94011.221.1870.98181.14591.81121.77292.1205
SGI 1.18610.92780.80480.77510.85480.87990.93020.93740.9480.9027
DEPI 0.84950.85330.84330.91370.97521.16991.13071.09190.95890.7162
SGAI 0.96911.13691.31141.38551.21921.19431.09841.10311.08321.1681
LVGI 0.54920.38850.33920.42250.71132.33541.97534.01622.83331.0965
TATA -0.0988-0.1408-0.1039-0.1309-0.1125-0.0812-0.13-0.1176-0.0828-0.1761
M-score -3.02-3.07-2.72-2.61-2.32-3.00-3.23-3.40-2.94-3.00
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