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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-3.10 (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.

MasTec Inc has a M-score of -3.10 suggests that the company is not a manipulator.

MTZ' s 10-Year Beneish M-Score Range
Min: -4.56   Max: -0.58
Current: -3.1

-4.56
-0.58

During the past 13 years, the highest Beneish M-Score of MasTec Inc was -0.58. The lowest was -4.56. And the median was -2.49.


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 MasTec 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 * 0.8518+0.528 * 1.0932+0.404 * 1.0904+0.892 * 1.0266+0.115 * 0.8804
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2014+4.679 * -0.1138-0.327 * 1.0285
=-3.10

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,127 Mil.
Revenue was 1066.629 + 1003.268 + 1233.623 + 1309.596 = $4,613 Mil.
Gross Profit was 120.682 + 116.854 + 170.564 + 186.635 = $595 Mil.
Total Current Assets was $1,354 Mil.
Total Assets was $3,357 Mil.
Property, Plant and Equipment(Net PPE) was $615 Mil.
Depreciation, Depletion and Amortization(DDA) was $170 Mil.
Selling, General & Admin. Expense(SGA) was $274 Mil.
Total Current Liabilities was $853 Mil.
Long-Term Debt was $1,137 Mil.
Net Income was -3.7 + -6.263 + 22.579 + 45.271 = $58 Mil.
Non Operating Income was 2.353 + 0.007 + 2.692 + 1.416 = $6 Mil.
Cash Flow from Operations was 47.027 + 118.826 + 241.992 + 25.7 = $434 Mil.
Accounts Receivable was $1,289 Mil.
Revenue was 1107.232 + 957.818 + 1159.13 + 1269.385 = $4,494 Mil.
Gross Profit was 156.517 + 116.494 + 172.05 + 188.253 = $633 Mil.
Total Current Assets was $1,490 Mil.
Total Assets was $3,396 Mil.
Property, Plant and Equipment(Net PPE) was $619 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $222 Mil.
Total Current Liabilities was $868 Mil.
Long-Term Debt was $1,089 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)
=(1126.927 / 4613.116) / (1288.672 / 4493.565)
=0.24428759 / 0.28678165
=0.8518

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)
=(116.854 / 4493.565) / (120.682 / 4613.116)
=0.14093799 / 0.12892262
=1.0932

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 - (1354.265 + 614.826) / 3356.903) / (1 - (1489.652 + 618.672) / 3395.87)
=0.41342035 / 0.37915056
=1.0904

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
=4613.116 / 4493.565
=1.0266

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))
=(145.82 / (145.82 + 618.672)) / (170.055 / (170.055 + 614.826))
=0.19074104 / 0.21666342
=0.8804

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)
=(274.02 / 4613.116) / (222.181 / 4493.565)
=0.0594002 / 0.04944426
=1.2014

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)
=((1136.783 + 852.968) / 3356.903) / ((1088.666 + 868.474) / 3395.87)
=0.59273414 / 0.57632948
=1.0285

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
=(57.887 - 6.468 - 433.545) / 3356.903
=-0.1138

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.

MasTec Inc has a M-score of -3.10 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.

MasTec Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00210.84910.88671.53940.83781.04221.12171.0121.11471.0773
GMI 0.78570.98530.99860.97350.94961.04151.11491.0030.88081.0808
AQI 1.05320.95950.971.23011.04450.96291.05230.87980.91611.0246
SGI 1.0391.12131.10351.32851.17761.321.32121.31631.16051.0664
DEPI 0.8141.36391.11371.18460.76560.82131.09161.06030.93631.1279
SGAI 0.83411.05561.41730.58860.91760.87670.89460.90261.17831.0375
LVGI 1.00730.7511.10011.09970.93660.99670.94531.03761.04581.0503
TATA -0.0005-0.1621-0.11190.0061-0.0407-0.0770.0478-0.0236-0.0205-0.0604
M-score -2.53-3.18-3.12-1.52-2.66-2.51-1.73-2.33-2.48-2.59

MasTec Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.03981.04341.20731.11471.18621.00121.02551.07810.88850.8518
GMI 0.93040.83940.81590.88080.93481.02591.06591.08621.06841.0932
AQI 0.840.96170.94110.91610.95480.9920.97641.02461.08681.0904
SGI 1.30111.18961.16221.16051.11691.15341.10631.06551.06641.0266
DEPI 1.10251.17181.13820.93630.97151.02971.04511.12791.03190.8804
SGAI 0.91321.05361.11931.17831.1641.05481.01291.03831.10481.2014
LVGI 1.1161.06771.0651.04581.01741.01291.0241.05031.06041.0285
TATA -0.0111-0.0229-0.015-0.019-0.0081-0.0321-0.008-0.061-0.1113-0.1138
M-score -2.34-2.49-2.36-2.47-2.33-2.49-2.38-2.59-3.01-3.10
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