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M/A-COM Technology Solutions Holdings Inc (NAS:MTSI)
Beneish M-Score
-2.40 (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.

M/A-COM Technology Solutions Holdings Inc has a M-score of -2.40 suggests that the company is not a manipulator.

MTSI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9   Max: -1.3
Current: -2.4

-2.9
-1.3

During the past 7 years, the highest Beneish M-Score of M/A-COM Technology Solutions Holdings Inc was -1.30. The lowest was -2.90. And the median was -2.31.


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 M/A-COM Technology Solutions Holdings 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 * 0.9713+0.528 * 0.8726+0.404 * 0.9351+0.892 * 1.1989+0.115 * 1.0491
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1235+4.679 * -0.0119-0.327 * 0.7103
=-2.40

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $92.5 Mil.
Revenue was 115.774 + 50.197 + 130.663 + 124.885 = $421.5 Mil.
Gross Profit was 60.318 + 35.598 + 59.784 + 54.007 = $209.7 Mil.
Total Current Assets was $329.4 Mil.
Total Assets was $898.4 Mil.
Property, Plant and Equipment(Net PPE) was $94.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.3 Mil.
Selling, General & Admin. Expense(SGA) was $119.1 Mil.
Total Current Liabilities was $80.8 Mil.
Long-Term Debt was $342.2 Mil.
Net Income was -15.571 + 54.406 + 8.027 + -7.537 = $39.3 Mil.
Non Operating Income was -14.778 + 5.781 + 4.321 + -6.985 = $-11.7 Mil.
Cash Flow from Operations was 15.514 + 5.483 + 12.177 + 28.538 = $61.7 Mil.
Accounts Receivable was $79.5 Mil.
Revenue was 96.556 + 34.844 + 112.364 + 107.827 = $351.6 Mil.
Gross Profit was 47.419 + 28.141 + 50.214 + 26.863 = $152.6 Mil.
Total Current Assets was $278.8 Mil.
Total Assets was $777.3 Mil.
Property, Plant and Equipment(Net PPE) was $59.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $40.3 Mil.
Selling, General & Admin. Expense(SGA) was $88.4 Mil.
Total Current Liabilities was $71.9 Mil.
Long-Term Debt was $443.2 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)
=(92.524 / 421.519) / (79.452 / 351.591)
=0.21950137 / 0.22597848
=0.9713

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)
=(35.598 / 351.591) / (60.318 / 421.519)
=0.43413227 / 0.49750308
=0.8726

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 - (329.406 + 94.439) / 898.449) / (1 - (278.802 + 59.393) / 777.291)
=0.52824813 / 0.56490555
=0.9351

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
=421.519 / 351.591
=1.1989

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))
=(40.347 / (40.347 + 59.393)) / (59.264 / (59.264 + 94.439))
=0.40452176 / 0.38557478
=1.0491

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)
=(119.117 / 421.519) / (88.438 / 351.591)
=0.28258987 / 0.25153659
=1.1235

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)
=((342.151 + 80.769) / 898.449) / ((443.248 + 71.898) / 777.291)
=0.47072232 / 0.66274536
=0.7103

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
=(39.325 - -11.661 - 61.712) / 898.449
=-0.0119

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.

M/A-COM Technology Solutions Holdings Inc has a M-score of -2.40 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.

M/A-COM Technology Solutions Holdings Inc Annual Data

Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 0.85161.20391.09670.93351.0874
GMI 0.84750.9521.05721.01620.8584
AQI 0.97060.66631.2773.20741.2119
SGI 1.19210.97391.06911.04991.24
DEPI 1.20630.9940.93930.76231.0348
SGAI 0.87990.95531.08691.51271.0743
LVGI 0.55810.65440.79243.81580.7566
TATA 0.0520.0164-0.0214-0.05880.0254
M-score -2.11-2.28-2.24-2.91-1.99

M/A-COM Technology Solutions Holdings Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.10031.17091.16061.1010.93041.12581.28531.191.13690.9713
GMI 1.04781.05081.15551.10321.02530.97830.76680.78480.84940.8726
AQI 1.2775.27265.80995.25323.20741.2081.11841.32831.21190.9351
SGI 1.06551.08871.17871.24731.05341.06171.02360.99471.18611.1989
DEPI 0.93931.19640.72320.69460.76230.64091.47621.6281.03481.0491
SGAI 1.081.24331.29711.29771.52241.38781.27761.24051.11941.1235
LVGI 0.79243.16843.63473.9113.81581.20050.86860.77920.75660.7103
TATA -0.0149-0.0288-0.0453-0.047-0.0588-0.0142-0.0346-0.03070.0254-0.0119
M-score -2.21-1.35-1.30-1.65-2.90-2.48-2.38-2.33-2.00-2.40
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