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Move Inc (NAS:MOVE)
Beneish M-Score
-3.85 (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.

Move Inc has a M-score of -3.85 suggests that the company is not a manipulator.

MOVE' s 10-Year Beneish M-Score Range
Min: -16.37   Max: -1.49
Current: -3.85

-16.37
-1.49

During the past 13 years, the highest Beneish M-Score of Move Inc was -1.49. The lowest was -16.37. And the median was -2.98.


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 Move 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 * 0.8609+0.528 * 0.9996+0.404 * 0.6461+0.892 * 1.1219+0.115 * 0.9484
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0588+4.679 * -0.1676-0.327 * 2.2383
=-3.85

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $12.0 Mil.
Revenue was 58.013 + 56.48 + 58.825 + 57.49 = $230.8 Mil.
Gross Profit was 45.901 + 50.875 + 45.059 + 45.7 = $187.5 Mil.
Total Current Assets was $136.5 Mil.
Total Assets was $235.9 Mil.
Property, Plant and Equipment(Net PPE) was $26.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.9 Mil.
Selling, General & Admin. Expense(SGA) was $145.3 Mil.
Total Current Liabilities was $40.6 Mil.
Long-Term Debt was $83.3 Mil.
Net Income was -5.182 + 0.07 + 0.138 + 0.466 = $-4.5 Mil.
Non Operating Income was 0.819 + 0.902 + 0.539 + 0.455 = $2.7 Mil.
Cash Flow from Operations was 3.169 + 11.897 + 10.514 + 6.738 = $32.3 Mil.
Accounts Receivable was $12.4 Mil.
Revenue was 54.238 + 52.737 + 49.446 + 49.309 = $205.7 Mil.
Gross Profit was 43.375 + 44.825 + 39.21 + 39.681 = $167.1 Mil.
Total Current Assets was $51.1 Mil.
Total Assets was $140.7 Mil.
Property, Plant and Equipment(Net PPE) was $22.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.3 Mil.
Selling, General & Admin. Expense(SGA) was $122.4 Mil.
Total Current Liabilities was $33.0 Mil.
Long-Term Debt was $0.0 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)
=(12.002 / 230.808) / (12.427 / 205.73)
=0.05199993 / 0.06040441
=0.8609

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)
=(50.875 / 205.73) / (45.901 / 230.808)
=0.81218587 / 0.81251516
=0.9996

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 - (136.483 + 26.6) / 235.881) / (1 - (51.087 + 22.413) / 140.708)
=0.30862172 / 0.47764164
=0.6461

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
=230.808 / 205.73
=1.1219

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))
=(12.303 / (12.303 + 22.413)) / (15.869 / (15.869 + 26.6))
=0.35438991 / 0.37366079
=0.9484

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)
=(145.337 / 230.808) / (122.355 / 205.73)
=0.62968788 / 0.59473582
=1.0588

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)
=((83.271 + 40.585) / 235.881) / ((0 + 33.008) / 140.708)
=0.52507832 / 0.2345851
=2.2383

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
=(-4.508 - 2.715 - 32.318) / 235.881
=-0.1676

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.

Move Inc has a M-score of -3.85 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.

Move Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.81641.14680.96470.85480.97010.95930.96371.24710.96560.8776
GMI 0.94730.96111.00820.98750.9881.050.98670.99020.9721.0178
AQI 0.84380.48630.93210.62554.94041.02820.35811.33632.17870.6233
SGI 1.05311.11091.16271.0220.84560.87580.93160.97071.03921.1395
DEPI 1.19271.57691.08370.98030.8591.03541.03710.94860.99250.9115
SGAI 0.89470.97170.95310.98751.06870.98670.8450.96541.03611.0258
LVGI 0.60820.65530.81240.8891.48720.90410.42441.21271.33680.6953
TATA -0.1835-0.0166-0.0655-0.0504-0.1089-0.057-0.0823-0.0714-0.1809-0.146
M-score -3.38-2.37-2.62-2.95-1.76-2.82-3.01-2.55-2.98-3.21

Move Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.03831.27781.10030.96561.06170.92760.87560.87760.86090.7825
GMI 0.98610.98310.9810.9720.97750.9870.99870.99670.99960.9972
AQI 0.93781.28121.85632.17872.11131.56070.68170.62330.64610.6497
SGI 0.96190.96771.0021.03921.08061.12121.15241.13951.12191.0969
DEPI 0.94070.92820.98090.99251.00921.01150.95060.91150.94840.9372
SGAI 0.9791.0030.99491.03611.03881.04311.05231.05451.05881.0809
LVGI 2.43261.24151.29111.33680.50310.99810.65630.69532.23832.2631
TATA -0.1033-0.1242-0.1652-0.1809-0.1814-0.1973-0.1365-0.146-0.1676-0.1792
M-score -3.47-2.82-2.92-2.98-2.61-3.15-3.13-3.23-3.85-4.01
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