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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-2.60 (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 -2.60 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: -2.6

-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 -2.55.


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 * 1.0873+0.528 * 1.0205+0.404 * 0.8795+0.892 * 1.0925+0.115 * 0.9868
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8361+4.679 * -0.0568-0.327 * 1.0136
=-2.60

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,216 Mil.
Revenue was 1586.181 + 1232.404 + 974.225 + 1027.424 = $4,820 Mil.
Gross Profit was 217.193 + 164.222 + 89.824 + 111.193 = $582 Mil.
Total Current Assets was $1,422 Mil.
Total Assets was $3,214 Mil.
Property, Plant and Equipment(Net PPE) was $555 Mil.
Depreciation, Depletion and Amortization(DDA) was $164 Mil.
Selling, General & Admin. Expense(SGA) was $254 Mil.
Total Current Liabilities was $942 Mil.
Long-Term Debt was $951 Mil.
Net Income was 56.277 + 24.088 + -2.692 + -76.764 = $1 Mil.
Non Operating Income was 0.965 + -1.035 + 16.422 + -66.759 = $-50 Mil.
Cash Flow from Operations was 98.653 + 12.637 + 15.851 + 106.811 = $234 Mil.
Accounts Receivable was $1,024 Mil.
Revenue was 1111.01 + 1066.629 + 1003.268 + 1231.265 = $4,412 Mil.
Gross Profit was 138.299 + 120.682 + 116.854 + 168.203 = $544 Mil.
Total Current Assets was $1,238 Mil.
Total Assets was $3,246 Mil.
Property, Plant and Equipment(Net PPE) was $587 Mil.
Depreciation, Depletion and Amortization(DDA) was $171 Mil.
Selling, General & Admin. Expense(SGA) was $278 Mil.
Total Current Liabilities was $787 Mil.
Long-Term Debt was $1,099 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)
=(1216 / 4820.234) / (1023.663 / 4412.172)
=0.25226991 / 0.23200886
=1.0873

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)
=(544.038 / 4412.172) / (582.432 / 4820.234)
=0.1233039 / 0.12083065
=1.0205

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 - (1422.427 + 554.513) / 3214.046) / (1 - (1238.314 + 586.993) / 3245.786)
=0.38490613 / 0.43763791
=0.8795

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
=4820.234 / 4412.172
=1.0925

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))
=(170.504 / (170.504 + 586.993)) / (163.863 / (163.863 + 554.513))
=0.22508868 / 0.228102
=0.9868

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)
=(253.864 / 4820.234) / (277.929 / 4412.172)
=0.05266632 / 0.06299142
=0.8361

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)
=((950.641 + 942.365) / 3214.046) / ((1098.585 + 787.41) / 3245.786)
=0.58897912 / 0.58105956
=1.0136

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
=(0.909 - -50.407 - 233.952) / 3214.046
=-0.0568

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 -2.60 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 local exchange's currency.

MasTec Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.84910.88671.53940.83781.04221.12171.0121.11471.07730.766
GMI 0.98530.99860.97350.94961.04151.11491.0030.88081.08081.1876
AQI 0.95950.971.23011.04450.96291.05230.87980.91611.02461.0704
SGI 1.12131.10351.32851.17761.321.32121.31631.16051.06640.9125
DEPI 1.36391.11371.18460.76560.82131.09161.06620.93111.12790.8527
SGAI 1.05561.41730.58860.91760.87670.89460.90261.17831.03751.2228
LVGI 0.7511.10011.09970.93660.99670.94531.03761.04581.05031.0049
TATA -0.1621-0.11190.0061-0.0586-0.07630.0269-0.0236-0.0205-0.0604-0.1282
M-score -3.18-3.12-1.52-2.75-2.50-1.83-2.33-2.48-2.59-3.30

MasTec Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.00121.02411.07730.88780.85120.75780.7660.95511.02871.0873
GMI 1.02591.05721.08081.06311.08741.13921.18761.23721.11841.0205
AQI 0.9920.97641.02461.08681.09041.18481.07041.00470.96250.8795
SGI 1.15341.10781.06641.06721.02740.97190.91250.89740.94121.0925
DEPI 1.02511.04091.12791.03190.88040.8710.85270.91150.95760.9868
SGAI 1.05481.01151.03751.10391.20041.28181.22281.08390.97140.8361
LVGI 1.01291.0241.05031.06041.02851.00861.00491.00231.00711.0136
TATA -0.0321-0.007-0.0604-0.1106-0.1118-0.1486-0.1282-0.0955-0.0718-0.0568
M-score -2.49-2.38-2.59-3.01-3.09-3.34-3.30-2.96-2.80-2.60
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