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Move, Inc. (NAS:MOVE)
Beneish M-Score
-3.21 (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 -3.21 suggests that the company is not a manipulator.

MOVE' s 10-Year Beneish M-Score Range
Min: -15   Max: -1.76
Current: -3.21

-15
-1.76

During the past 13 years, the highest Beneish M-Score of Move, Inc. was -1.76. The lowest was -15.00. 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 * 0.8776+0.528 * 1.0178+0.404 * 0.6233+0.892 * 1.1395+0.115 * 0.9115
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0258+4.679 * -0.146-0.327 * 0.6953
=-3.21

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $11.8 Mil.
Revenue was 56.48 + 58.825 + 57.49 + 54.238 = $227.0 Mil.
Gross Profit was 50.875 + 45.059 + 43.681 + 41.55 = $181.2 Mil.
Total Current Assets was $138.6 Mil.
Total Assets was $236.8 Mil.
Property, Plant and Equipment(Net PPE) was $24.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.9 Mil.
Selling, General & Admin. Expense(SGA) was $137.3 Mil.
Total Current Liabilities was $40.6 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 0.07 + 0.138 + 0.466 + -0.1 = $0.6 Mil.
Non Operating Income was 0.902 + 0.539 + 0.455 + 0.575 = $2.5 Mil.
Cash Flow from Operations was 11.897 + 10.514 + 6.738 + 3.533 = $32.7 Mil.
Accounts Receivable was $11.8 Mil.
Revenue was 52.737 + 49.446 + 49.309 + 47.741 = $199.2 Mil.
Gross Profit was 44.825 + 39.21 + 39.681 + 38.096 = $161.8 Mil.
Total Current Assets was $46.1 Mil.
Total Assets was $136.9 Mil.
Property, Plant and Equipment(Net PPE) was $22.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.8 Mil.
Selling, General & Admin. Expense(SGA) was $117.4 Mil.
Total Current Liabilities was $33.8 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)
=(11.76 / 227.033) / (11.759 / 199.233)
=0.05179864 / 0.05902135
=0.8776

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)
=(45.059 / 199.233) / (50.875 / 227.033)
=0.81217469 / 0.7979677
=1.0178

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 - (138.642 + 23.96) / 236.789) / (1 - (46.096 + 21.975) / 136.869)
=0.31330425 / 0.50265582
=0.6233

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
=227.033 / 199.233
=1.1395

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))
=(11.826 / (11.826 + 21.975)) / (14.926 / (14.926 + 23.96))
=0.34987131 / 0.38383994
=0.9115

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)
=(137.294 / 227.033) / (117.449 / 199.233)
=0.60473147 / 0.58950575
=1.0258

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)
=((0 + 40.624) / 236.789) / ((0 + 33.773) / 136.869)
=0.17156202 / 0.2467542
=0.6953

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
=(0.574 - 2.471 - 32.682) / 236.789
=-0.146

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 -3.21 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.1731.24711.03831.27781.10030.96561.06170.92760.87560.8776
GMI 0.99210.99020.98610.98310.9810.9720.98831.00941.02061.0178
AQI 1.39831.33630.93781.28121.85632.17872.11131.56070.68170.6233
SGI 0.97550.97070.96190.96771.0021.03921.08061.12121.15241.1395
DEPI 0.94320.94860.94070.92820.98090.99251.00921.01150.95060.9115
SGAI 0.92620.96540.9791.0030.99491.03611.02331.0121.02211.0258
LVGI 1.16971.21272.43261.24151.29111.33680.50310.99810.65630.6953
TATA -0.0668-0.0714-0.1033-0.1242-0.1652-0.1809-0.1814-0.1973-0.1365-0.146
M-score -2.55-2.55-3.47-2.82-2.92-2.98-2.60-3.13-3.11-3.21
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