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M/A-COM Technology Solutions Holdings Inc (NAS:MTSI)
Beneish M-Score
-2.20 (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 -2.20 signals that the company is a manipulator.

MTSI' s 10-Year Beneish M-Score Range
Min: -2.34   Max: -2.2
Current: -2.2

-2.34
-2.2

During the past 6 years, the highest Beneish M-Score of M/A-COM Technology Solutions Holdings Inc was -2.20. The lowest was -2.34. And the median was -2.27.


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 * 0.9072+0.528 * 1.0878+0.404 * 4.1479+0.892 * 1.3158+0.115 * 0.8784
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3092+4.679 * -0.0545-0.327 * 3.7846
=-2.20

* 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 $75.2 Mil.
Revenue was 114.317 + 112.364 + 107.827 + 83.468 = $418.0 Mil.
Gross Profit was 56.189 + 50.214 + 26.863 + 36.665 = $169.9 Mil.
Total Current Assets was $373.3 Mil.
Total Assets was $682.2 Mil.
Property, Plant and Equipment(Net PPE) was $50.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.4 Mil.
Selling, General & Admin. Expense(SGA) was $85.7 Mil.
Total Current Liabilities was $85.6 Mil.
Long-Term Debt was $343.2 Mil.
Net Income was 14.537 + 1.183 + -22.122 + -6.499 = $-12.9 Mil.
Non Operating Income was 2.414 + -1.428 + -3.057 + 1.36 = $-0.7 Mil.
Cash Flow from Operations was 15.269 + 14.977 + -9.648 + 4.401 = $25.0 Mil.
Accounts Receivable was $63.0 Mil.
Revenue was 80.322 + 83.477 + 78.843 + 75.014 = $317.7 Mil.
Gross Profit was 39.876 + 35.504 + 32.833 + 32.265 = $140.5 Mil.
Total Current Assets was $244.9 Mil.
Total Assets was $304.2 Mil.
Property, Plant and Equipment(Net PPE) was $31.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.7 Mil.
Selling, General & Admin. Expense(SGA) was $49.7 Mil.
Total Current Liabilities was $50.5 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)
=(75.156 / 417.976) / (62.961 / 317.656)
=0.17980937 / 0.19820498
=0.9072

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)
=(50.214 / 317.656) / (56.189 / 417.976)
=0.44223311 / 0.40655684
=1.0878

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 - (373.349 + 50.357) / 682.234) / (1 - (244.874 + 31.563) / 304.231)
=0.3789433 / 0.09135821
=4.1479

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
=417.976 / 317.656
=1.3158

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))
=(13.674 / (13.674 + 31.563)) / (26.422 / (26.422 + 50.357))
=0.30227469 / 0.34413056
=0.8784

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)
=(85.685 / 417.976) / (49.741 / 317.656)
=0.20499981 / 0.15658763
=1.3092

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)
=((343.178 + 85.646) / 682.234) / ((0 + 50.527) / 304.231)
=0.62855853 / 0.16608104
=3.7846

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
=(-12.901 - -0.711 - 24.999) / 682.234
=-0.0545

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 -2.20 signals that the company is likely to 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

Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 1.1018
GMI 1.0184
AQI 0.9863
SGI 1.0546
DEPI 0.9685
SGAI 1.0645
LVGI 0.7989
TATA -0.0182
M-score -2.37

M/A-COM Technology Solutions Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.07191.10551.1891.17711.11540.9072
GMI 1.06491.00941.00461.10471.0591.0878
AQI 0.7120.98635.27265.76085.25324.1479
SGI 1.01781.05111.07211.16221.23111.3158
DEPI 0.77330.96851.29831.06750.9270.8784
SGAI 1.0891.05741.2151.27391.27751.3092
LVGI 0.7390.79893.16843.63473.9113.7846
TATA -0.025-0.0115-0.026-0.0371-0.0417-0.0545
M-score -2.55-2.34-1.35-1.27-1.62-2.20
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