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Move Inc (NAS:MOVE)
Beneish M-Score
-4.22 (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 -4.22 suggests that the company is not a manipulator.

MOVE' s 10-Year Beneish M-Score Range
Min: -16.37   Max: -1.51
Current: -4.22

-16.37
-1.51

During the past 13 years, the highest Beneish M-Score of Move Inc was -1.51. The lowest was -16.37. And the median was -3.02.


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 * 0.8689+0.528 * 1.0022+0.404 * 1.0257+0.892 * 1.0735+0.115 * 0.9884
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1299+4.679 * -0.1933-0.327 * 3.3607
=-4.22

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $11.7 Mil.
Revenue was 63.884 + 61.319 + 58.013 + 56.48 = $239.7 Mil.
Gross Profit was 50.073 + 48.587 + 45.901 + 45.015 = $189.6 Mil.
Total Current Assets was $136.5 Mil.
Total Assets was $242.6 Mil.
Property, Plant and Equipment(Net PPE) was $28.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.0 Mil.
Selling, General & Admin. Expense(SGA) was $160.5 Mil.
Total Current Liabilities was $46.8 Mil.
Long-Term Debt was $84.9 Mil.
Net Income was -8.63 + -6.293 + -5.182 + 0.07 = $-20.0 Mil.
Non Operating Income was 0.973 + 0.844 + 0.819 + 0.902 = $3.5 Mil.
Cash Flow from Operations was 5.638 + 2.607 + 3.169 + 11.897 = $23.3 Mil.
Accounts Receivable was $12.5 Mil.
Revenue was 58.825 + 57.49 + 54.238 + 52.737 = $223.3 Mil.
Gross Profit was 47.075 + 45.7 + 43.375 + 40.833 = $177.0 Mil.
Total Current Assets was $134.5 Mil.
Total Assets was $228.7 Mil.
Property, Plant and Equipment(Net PPE) was $23.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.2 Mil.
Selling, General & Admin. Expense(SGA) was $132.3 Mil.
Total Current Liabilities was $37.0 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)
=(11.654 / 239.696) / (12.494 / 223.29)
=0.04861992 / 0.05595414
=0.8689

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)
=(48.587 / 223.29) / (50.073 / 239.696)
=0.79261498 / 0.79090181
=1.0022

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 - (136.501 + 28.862) / 242.556) / (1 - (134.542 + 23.198) / 228.697)
=0.31824816 / 0.31026642
=1.0257

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
=239.696 / 223.29
=1.0735

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))
=(14.189 / (14.189 + 23.198)) / (17.991 / (17.991 + 28.862))
=0.37951694 / 0.38398822
=0.9884

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)
=(160.459 / 239.696) / (132.289 / 223.29)
=0.66942711 / 0.59245376
=1.1299

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)
=((84.915 + 46.827) / 242.556) / ((0 + 36.961) / 228.697)
=0.54314055 / 0.16161559
=3.3607

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
=(-20.035 - 3.538 - 23.311) / 242.556
=-0.1933

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 -4.22 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 0.86711.09370.9960.99970.84240.95930.96371.24710.96560.8776
GMI 0.94630.98461.00330.96870.9881.050.98670.99020.99660.9927
AQI 0.84380.48630.99060.90313.21951.02820.35811.33632.17870.6233
SGI 0.99151.16491.14950.98590.84560.87580.93160.97071.03921.1395
DEPI 1.20851.45671.14581.0640.81031.03541.03710.94860.99250.9115
SGAI 0.78810.95030.95971.00281.05850.99620.8450.96541.00091.0619
LVGI 0.60820.65530.81240.8891.48720.90410.42441.21271.33680.6953
TATA -0.1835-0.0233-0.0655-0.0504-0.0976-0.057-0.0823-0.0714-0.1809-0.146
M-score -3.37-2.40-2.57-2.74-2.52-2.82-3.01-2.55-2.96-3.23

Move Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.27781.10030.96561.06170.92760.87560.87760.86090.78250.8689
GMI 0.98310.9810.99661.00151.01031.00980.99270.99610.99421.0022
AQI 1.28121.85632.17872.11131.56070.68170.62330.64610.64971.0257
SGI 0.96771.0021.03921.08061.12121.15241.13951.12191.09691.0735
DEPI 0.92820.98090.99251.00921.01150.95060.91150.94840.93720.9884
SGAI 1.0030.99491.00091.00491.01081.03681.06191.06551.08741.1299
LVGI 1.24151.29111.33680.50310.99810.65630.69532.23832.26313.3607
TATA -0.1242-0.1652-0.1809-0.1814-0.1973-0.1365-0.146-0.1676-0.1792-0.1933
M-score -2.82-2.92-2.96-2.59-3.13-3.12-3.23-3.85-4.01-4.22
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