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Mitcham Industries, Inc. (NAS:MIND)
Beneish M-Score
-2.44 (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 -3.07 suggests that the company is not a manipulator.

MIND' s 10-Year Beneish M-Score Range
Min: -24.03   Max: 18.79
Current: -2.44

-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 -2.76.


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 * 1.375+0.528 * 1.0282+0.404 * 0.9818+0.892 * 0.8799+0.115 * 1.1699
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1943+4.679 * -0.0812-0.327 * 2.3354
=-3.07

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $30.52 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.
Net Income was 1.782 + -2.628 + -0.693 + 6.307 = $4.77 Mil.
Non Operating Income was 0.009 + -0.517 + 1 + -0.261 = $0.23 Mil.
Cash Flow from Operations was 2.525 + 2.729 + 7.571 + 8.39 = $21.22 Mil.
Accounts Receivable was $25.23 Mil.
Revenue was 28.401 + 18.573 + 23.08 + 34.631 = $104.69 Mil.
Gross Profit was 8.773 + 4.354 + 7.4 + 16.886 = $37.41 Mil.
Total Current Assets was $57.88 Mil.
Total Assets was $190.41 Mil.
Property, Plant and Equipment(Net PPE) was $119.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.94 Mil.
Selling, General & Admin. Expense(SGA) was $22.52 Mil.
Total Current Liabilities was $9.48 Mil.
Long-Term Debt was $4.24 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)
=(30.519 / 92.108) / (25.227 / 104.685)
=0.3313393 / 0.24098008
=1.375

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)
=(4.953 / 104.685) / (8.165 / 92.108)
=0.35738645 / 0.3475811
=1.0282

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 - (62.16 + 129.573) / 205.419) / (1 - (57.878 + 119.608) / 190.407)
=0.0666248 / 0.0678599
=0.9818

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
=92.108 / 104.685
=0.8799

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))
=(34.939 / (34.939 + 119.608)) / (31.037 / (31.037 + 129.573))
=0.22607362 / 0.19324451
=1.1699

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)
=(23.669 / 92.108) / (22.524 / 104.685)
=0.25697008 / 0.21515977
=1.1943

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)
=((22.125 + 12.438) / 205.419) / ((4.238 + 9.48) / 190.407)
=0.1682561 / 0.07204567
=2.3354

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
=(4.768 - 0.231 - 21.215) / 205.419
=-0.0812

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 -3.07 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 0.95090.93861.08380.74211.0331.61070.88671.10730.71441.375
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 1.01611.12671.54231.10140.89230.93060.98551.15660.85331.1699
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 -3.608.06-1.80-3.06-3.04-2.33-3.37-2.27-3.05-3.06

Mitcham Industries, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.19581.10730.84270.7710.59960.71441.08321.19921.43651.375
GMI 0.6820.72940.82330.8711.08251.43221.3911.44991.30771.0282
AQI 0.50190.61970.82980.71770.91681.06980.94011.221.1870.9818
SGI 1.38481.58111.48671.40321.18610.92780.80480.77510.85480.8799
DEPI 1.1641.15660.99320.91640.84950.85330.84330.91370.97521.1699
SGAI 0.89780.80610.86050.82990.96911.13691.31141.38551.21921.1943
LVGI 0.73160.65710.50020.81580.54920.38850.33920.42250.71132.3354
TATA -0.119-0.0596-0.0802-0.0729-0.0988-0.1408-0.1039-0.1309-0.1125-0.0812
M-score -2.76-2.27-2.54-2.77-3.00-3.05-2.74-2.67-2.44-3.07
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