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M/A-COM Technology Solutions Holdings Inc (NAS:MTSI)
Beneish M-Score
-2.55 (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 -2.55 suggests that the company is not a manipulator.

MTSI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68   Max: -1.33
Current: -2.55

-2.68
-1.33

During the past 7 years, the highest Beneish M-Score of M/A-COM Technology Solutions Holdings Inc was -1.33. The lowest was -2.68. And the median was -2.26.


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 * 0.825+0.528 * 0.9689+0.404 * 1.0276+0.892 * 1.2427+0.115 * 0.8116
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0869+4.679 * -0.0246-0.327 * 0.9185
=-2.55

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $91.6 Mil.
Revenue was 133.579 + 115.774 + 50.197 + 130.663 = $430.2 Mil.
Gross Profit was 65.525 + 60.318 + 35.598 + 59.784 = $221.2 Mil.
Total Current Assets was $308.0 Mil.
Total Assets was $900.4 Mil.
Property, Plant and Equipment(Net PPE) was $99.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $62.0 Mil.
Selling, General & Admin. Expense(SGA) was $124.5 Mil.
Total Current Liabilities was $82.8 Mil.
Long-Term Debt was $341.4 Mil.
Net Income was -10.649 + -15.571 + 54.406 + 8.027 = $36.2 Mil.
Non Operating Income was -4.282 + -14.778 + 5.781 + 4.321 = $-9.0 Mil.
Cash Flow from Operations was 19.584 + 15.514 + 5.483 + 26.763 = $67.3 Mil.
Accounts Receivable was $89.4 Mil.
Revenue was 102.431 + 96.556 + 34.844 + 112.364 = $346.2 Mil.
Gross Profit was 46.714 + 47.419 + 28.141 + 50.214 = $172.5 Mil.
Total Current Assets was $308.7 Mil.
Total Assets was $800.2 Mil.
Property, Plant and Equipment(Net PPE) was $65.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $29.5 Mil.
Selling, General & Admin. Expense(SGA) was $92.2 Mil.
Total Current Liabilities was $68.2 Mil.
Long-Term Debt was $342.3 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)
=(91.604 / 430.213) / (89.35 / 346.195)
=0.21292708 / 0.25809154
=0.825

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)
=(60.318 / 346.195) / (65.525 / 430.213)
=0.49823943 / 0.51422202
=0.9689

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 - (308.025 + 99.637) / 900.398) / (1 - (308.74 + 65.352) / 800.249)
=0.54724244 / 0.5325305
=1.0276

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
=430.213 / 346.195
=1.2427

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))
=(29.523 / (29.523 + 65.352)) / (61.961 / (61.961 + 99.637))
=0.31117787 / 0.38342678
=0.8116

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)
=(124.507 / 430.213) / (92.181 / 346.195)
=0.2894078 / 0.26626901
=1.0869

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)
=((341.396 + 82.834) / 900.398) / ((342.335 + 68.173) / 800.249)
=0.47115831 / 0.51297534
=0.9185

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
=(36.213 - -8.958 - 67.344) / 900.398
=-0.0246

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 -2.55 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 0.85161.20391.11170.74611.3422
GMI 0.84750.9521.01841.08590.8339
AQI 0.97060.66631.2773.20741.2119
SGI 1.19210.97391.05461.31361.0047
DEPI 1.18681.00960.97820.57461.2978
SGAI 0.87990.95531.06451.30581.2709
LVGI 0.55810.65440.79243.81580.7566
TATA 0.0520.0164-0.0175-0.05850.0254
M-score -2.11-2.28-2.23-2.79-1.98

M/A-COM Technology Solutions Holdings Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.5521.49951.39270.69820.85261.06321.00231.20411.0260.825
GMI 0.97741.11421.06011.09531.04190.7710.79250.83280.85590.9689
AQI 5.27265.80995.25323.20741.2081.11841.32831.21190.93511.0276
SGI 0.82140.91220.9861.40371.4021.23741.18091.11991.1351.2427
DEPI 1.20190.72610.69720.76230.64091.47621.6281.03481.04910.8116
SGAI 1.77321.77971.73051.02460.95660.96540.9631.1751.17691.0869
LVGI 3.16843.63473.9113.81581.20050.86860.77920.75660.71030.9185
TATA -0.0288-0.0453-0.047-0.0588-0.0142-0.0163-0.03070.0254-0.0119-0.0246
M-score -1.37-1.33-1.71-2.68-2.32-2.26-2.29-2.02-2.42-2.55
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