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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-2.37 (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 -2.37 suggests that the company is not a manipulator.

MTZ' s 10-Year Beneish M-Score Range
Min: -4.53   Max: -0.58
Current: -2.37

-4.53
-0.58

During the past 13 years, the highest Beneish M-Score of MasTec Inc was -0.58. The lowest was -4.53. And the median was -2.46.


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 * 1.0247+0.528 * 1.0606+0.404 * 0.9764+0.892 * 1.1072+0.115 * 1.045
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0121+4.679 * -0.006-0.327 * 1.024
=-2.37

* 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 $1,390 Mil.
Revenue was 1309.596 + 1104.556 + 964.029 + 1159.13 = $4,537 Mil.
Gross Profit was 186.635 + 153.667 + 122.975 + 172.05 = $635 Mil.
Total Current Assets was $1,574 Mil.
Total Assets was $3,470 Mil.
Property, Plant and Equipment(Net PPE) was $614 Mil.
Depreciation, Depletion and Amortization(DDA) was $150 Mil.
Selling, General & Admin. Expense(SGA) was $223 Mil.
Total Current Liabilities was $911 Mil.
Long-Term Debt was $1,088 Mil.
Net Income was 45.271 + 32.05 + 16.023 + 41.501 = $135 Mil.
Non Operating Income was 1.416 + -0.298 + -0.345 + 2.863 = $4 Mil.
Cash Flow from Operations was 25.7 + 75.713 + -20.394 + 71.146 = $152 Mil.
Accounts Receivable was $1,225 Mil.
Revenue was 1269.385 + 977.624 + 918.648 + 932.358 = $4,098 Mil.
Gross Profit was 188.253 + 154.969 + 127.149 + 138.219 = $609 Mil.
Total Current Assets was $1,332 Mil.
Total Assets was $2,954 Mil.
Property, Plant and Equipment(Net PPE) was $504 Mil.
Depreciation, Depletion and Amortization(DDA) was $130 Mil.
Selling, General & Admin. Expense(SGA) was $199 Mil.
Total Current Liabilities was $882 Mil.
Long-Term Debt was $780 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)
=(1389.903 / 4537.311) / (1225.122 / 4098.015)
=0.30632747 / 0.29895498
=1.0247

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)
=(153.667 / 4098.015) / (186.635 / 4537.311)
=0.14850849 / 0.1400228
=1.0606

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 - (1573.952 + 614.359) / 3470.126) / (1 - (1332.316 + 504.313) / 2954.338)
=0.36938572 / 0.37832807
=0.9764

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
=4537.311 / 4098.015
=1.1072

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))
=(129.945 / (129.945 + 504.313)) / (149.813 / (149.813 + 614.359))
=0.2048772 / 0.19604618
=1.045

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)
=(223.094 / 4537.311) / (199.093 / 4098.015)
=0.04916877 / 0.04858279
=1.0121

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)
=((1088.289 + 910.874) / 3470.126) / ((779.92 + 882.229) / 2954.338)
=0.57610675 / 0.56261301
=1.024

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
=(134.845 - 3.636 - 152.165) / 3470.126
=-0.006

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 -2.37 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.91820.92230.85560.88991.53940.8410.96411.14731.06551.1144
GMI 0.95170.67730.98170.99390.9790.94420.95271.19451.02340.8808
AQI 0.93281.07290.95880.97071.23011.03570.97111.04770.88040.9186
SGI 1.050.9281.11531.09721.32851.17761.42161.30371.23861.1605
DEPI 1.2610.73691.36721.1111.18460.76520.82161.10311.05280.9331
SGAI 0.77380.92891.0411.40140.58120.92920.91910.89890.85681.1783
LVGI 1.02991.01230.7511.10011.09970.94330.98970.94041.03951.048
TATA -0.09020.0003-0.162-0.11190.0061-0.0413-0.07610.0341-0.0269-0.0205
M-score -2.93-2.78-3.18-3.12-1.52-2.67-2.53-1.74-2.35-2.48

MasTec Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.23541.00781.05321.09631.08651.23691.12741.18551.00041.0247
GMI 1.27381.22621.01960.94990.84990.82350.8840.92531.02091.0606
AQI 0.82030.86070.88040.840.96170.94110.91860.95480.9920.9764
SGI 1.24821.21811.2531.2341.14241.13451.1471.11751.15431.1072
DEPI 0.90460.91091.05281.10251.17181.13820.93310.97151.02971.045
SGAI 0.92130.90620.87230.88061.00691.08421.15741.1551.05391.0121
LVGI 1.11611.09581.03951.1161.06771.0651.0481.01741.01291.024
TATA 0.0196-0.0599-0.0269-0.0141-0.0309-0.0176-0.019-0.0059-0.0301-0.006
M-score -1.91-2.52-2.35-2.35-2.52-2.36-2.47-2.33-2.49-2.37
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