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Marcus & Millichap, Inc. (NYSE:MMI)
Beneish M-Score
0.00 (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.

Marcus & Millichap, Inc. has a M-score of -2.32 suggests that the company is not a manipulator.

MMI' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 5 years, the highest Beneish M-Score of Marcus & Millichap, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Marcus & Millichap, 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 * 1.1049+0.528 * 1.0061+0.404 * 1.0434+0.892 * 1.2557+0.115 * 0.9239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7001+4.679 * -0.0659-0.327 * 0.7569
=-2.32

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $4.6 Mil.
Revenue was 146.541 + 172.444 + 150.889 + 134.265 = $604.1 Mil.
Gross Profit was 60.383 + 62.608 + 58.62 + 54.664 = $236.3 Mil.
Total Current Assets was $149.1 Mil.
Total Assets was $217.3 Mil.
Property, Plant and Equipment(Net PPE) was $8.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.2 Mil.
Selling, General & Admin. Expense(SGA) was $136.7 Mil.
Total Current Liabilities was $37.9 Mil.
Long-Term Debt was $10.6 Mil.
Net Income was 13.669 + 16.43 + 13.523 + 12.796 = $56.4 Mil.
Non Operating Income was 0.125 + 0.067 + -0.308 + 0.33 = $0.2 Mil.
Cash Flow from Operations was -17.993 + 36.529 + 29.06 + 22.924 = $70.5 Mil.
Accounts Receivable was $3.3 Mil.
Revenue was 114.59 + 149.101 + 111.953 + 105.471 = $481.1 Mil.
Gross Profit was 46.194 + 54.859 + 44.235 + 44.015 = $189.3 Mil.
Total Current Assets was $98.8 Mil.
Total Assets was $146.2 Mil.
Property, Plant and Equipment(Net PPE) was $8.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General & Admin. Expense(SGA) was $155.6 Mil.
Total Current Liabilities was $31.6 Mil.
Long-Term Debt was $11.5 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)
=(4.591 / 604.139) / (3.309 / 481.115)
=0.00759924 / 0.00687777
=1.1049

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)
=(62.608 / 481.115) / (60.383 / 604.139)
=0.39346726 / 0.39109377
=1.0061

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 - (149.089 + 8.038) / 217.329) / (1 - (98.821 + 8.537) / 146.162)
=0.27700859 / 0.26548624
=1.0434

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
=604.139 / 481.115
=1.2557

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))
=(3.058 / (3.058 + 8.537)) / (3.211 / (3.211 + 8.038))
=0.26373437 / 0.2854476
=0.9239

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)
=(136.746 / 604.139) / (155.554 / 481.115)
=0.22634857 / 0.32331979
=0.7001

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)
=((10.61 + 37.879) / 217.329) / ((11.464 + 31.618) / 146.162)
=0.22311334 / 0.29475513
=0.7569

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
=(56.418 - 0.214 - 70.52) / 217.329
=-0.0659

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.

Marcus & Millichap, Inc. has a M-score of -2.32 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.

Marcus & Millichap, Inc. Annual Data

Dec10Dec11Dec12Dec13Dec14
DSRI 0.8027
GMI 1.0122
AQI 0.873
SGI 1.3127
DEPI 0.8916
SGAI 0.6962
LVGI 0.8164
TATA -0.0939
M-score -2.77

Marcus & Millichap, Inc. Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.1049
GMI 1.0061
AQI 1.0434
SGI 1.2557
DEPI 0.9239
SGAI 0.7001
LVGI 0.7569
TATA -0.0659
M-score -2.32
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