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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-2.96 (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 -2.96 suggests that the company is not a manipulator.

MTZ' s Beneish M-Score Range Over the Past 10 Years
Min: -4.76   Max: -0.58
Current: -2.96

-4.76
-0.58

During the past 13 years, the highest Beneish M-Score of MasTec Inc was -0.58. The lowest was -4.76. And the median was -2.54.


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 * 0.9551+0.528 * 1.2372+0.404 * 1.0047+0.892 * 0.8974+0.115 * 0.9115
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0839+4.679 * -0.0955-0.327 * 1.0023
=-2.96

* 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 $971 Mil.
Revenue was 974.225 + 1027.424 + 1111.01 + 1066.629 = $4,179 Mil.
Gross Profit was 89.824 + 111.193 + 138.299 + 120.682 = $460 Mil.
Total Current Assets was $1,199 Mil.
Total Assets was $2,987 Mil.
Property, Plant and Equipment(Net PPE) was $548 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $252 Mil.
Total Current Liabilities was $812 Mil.
Long-Term Debt was $939 Mil.
Net Income was -2.692 + -76.764 + 7.618 + -3.7 = $-76 Mil.
Non Operating Income was 16.422 + -66.759 + -6.702 + 2.353 = $-55 Mil.
Cash Flow from Operations was 15.851 + 106.811 + 94.749 + 47.027 = $264 Mil.
Accounts Receivable was $1,133 Mil.
Revenue was 1003.268 + 1231.265 + 1315.488 + 1107.232 = $4,657 Mil.
Gross Profit was 116.854 + 168.203 + 192.627 + 156.517 = $634 Mil.
Total Current Assets was $1,358 Mil.
Total Assets was $3,351 Mil.
Property, Plant and Equipment(Net PPE) was $608 Mil.
Depreciation, Depletion and Amortization(DDA) was $164 Mil.
Selling, General & Admin. Expense(SGA) was $259 Mil.
Total Current Liabilities was $881 Mil.
Long-Term Debt was $1,078 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)
=(970.9 / 4179.288) / (1132.832 / 4657.253)
=0.2323123 / 0.24324038
=0.9551

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)
=(111.193 / 4657.253) / (89.824 / 4179.288)
=0.13617491 / 0.11006612
=1.2372

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 - (1198.536 + 548) / 2986.628) / (1 - (1358.173 + 608.019) / 3351.016)
=0.41521475 / 0.41325497
=1.0047

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
=4179.288 / 4657.253
=0.8974

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))
=(163.556 / (163.556 + 608.019)) / (166.072 / (166.072 + 548))
=0.2119768 / 0.23257039
=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)
=(251.929 / 4179.288) / (259.007 / 4657.253)
=0.06028036 / 0.05561368
=1.0839

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)
=((938.722 + 811.662) / 2986.628) / ((1078.019 + 881.485) / 3351.016)
=0.58607366 / 0.58474922
=1.0023

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
=(-75.538 - -54.686 - 264.438) / 2986.628
=-0.0955

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 -2.96 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.85370.89181.53940.83780.96771.13671.07551.11471.07730.766
GMI 0.98170.99390.9790.94420.95271.19451.02340.88081.08081.1876
AQI 0.95950.971.23011.04450.96291.05230.87980.91611.02461.0741
SGI 1.11531.09721.32851.17761.42161.30371.23861.16051.06640.9125
DEPI 1.36391.11371.18460.76560.82131.09161.06030.93631.12790.8528
SGAI 1.0411.40140.58120.92920.91910.89890.85681.17831.03751.2228
LVGI 0.7511.10011.09970.93660.99670.94531.03761.04581.05031.0081
TATA -0.162-0.11190.0061-0.0407-0.09370.0174-0.0235-0.0205-0.0604-0.1277
M-score -3.18-3.12-1.52-2.67-2.62-1.83-2.32-2.48-2.59-3.30

MasTec Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.11471.18621.00121.02411.07730.88780.85120.75780.7660.9551
GMI 0.88080.93481.02591.05721.08081.06311.08741.13921.18761.2372
AQI 0.91610.95480.9920.97641.02461.08681.09041.18481.07411.0047
SGI 1.16051.11691.15341.10781.06641.06721.02740.97190.91250.8974
DEPI 0.93110.96681.02511.04091.12791.03190.88040.8710.85280.9115
SGAI 1.17831.1641.05481.01151.03751.10391.20041.28181.22281.0839
LVGI 1.04581.01741.01291.0241.05031.06041.02851.00861.00811.0023
TATA -0.019-0.0081-0.0321-0.007-0.0604-0.1106-0.1132-0.1486-0.1277-0.0955
M-score -2.47-2.33-2.49-2.38-2.59-3.01-3.10-3.34-3.30-2.96
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