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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-3.34 (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 -3.34 suggests that the company is not a manipulator.

MTZ' s Beneish M-Score Range Over the Past 10 Years
Min: -4.56   Max: -0.58
Current: -3.34

-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 -2.50.


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 * 0.7578+0.528 * 1.1392+0.404 * 1.1848+0.892 * 0.9719+0.115 * 0.871
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2818+4.679 * -0.1486-0.327 * 1.0086
=-3.34

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 7.618 + -3.7 + -6.263 + 21.116 = $19 Mil.
Non Operating Income was -6.702 + 2.353 + 0.007 + 2.692 = $-2 Mil.
Cash Flow from Operations was 94.749 + 47.027 + 118.826 + 241.992 = $503 Mil.
Accounts Receivable was $1,390 Mil.
Revenue was 1315.488 + 1107.232 + 957.818 + 1159.13 = $4,540 Mil.
Gross Profit was 192.627 + 156.517 + 116.494 + 172.05 = $638 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.



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)
=(1023.663 / 4412.172) / (1389.903 / 4539.668)
=0.23200886 / 0.30616842
=0.7578

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)
=(120.682 / 4539.668) / (138.299 / 4412.172)
=0.14047018 / 0.1233039
=1.1392

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 - (1238.314 + 586.993) / 3245.786) / (1 - (1573.952 + 614.359) / 3470.126)
=0.43763791 / 0.36938572
=1.1848

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
=4412.172 / 4539.668
=0.9719

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))
=(149.811 / (149.811 + 614.359)) / (170.504 / (170.504 + 586.993))
=0.19604407 / 0.22508868
=0.871

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)
=(277.929 / 4412.172) / (223.094 / 4539.668)
=0.06299142 / 0.04914324
=1.2818

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)
=((1098.585 + 787.41) / 3245.786) / ((1088.289 + 910.874) / 3470.126)
=0.58105956 / 0.57610675
=1.0086

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
=(18.771 - -1.65 - 502.594) / 3245.786
=-0.1486

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 -3.34 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 -0.0005-0.1621-0.11190.0061-0.0407-0.07630.034-0.0236-0.0205-0.0604
M-score -2.53-3.18-3.12-1.52-2.66-2.50-1.79-2.33-2.48-2.59

MasTec Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.04341.20731.11471.18621.00121.02411.07730.88780.85120.7578
GMI 0.83940.81590.88080.93481.02591.05721.08081.06311.08741.1392
AQI 0.96170.94110.91610.95480.9920.97641.02461.08681.09041.1848
SGI 1.18961.16221.16051.11691.15341.10781.06641.06721.02740.9719
DEPI 1.17181.13820.93630.97151.02971.04511.12791.03190.88040.871
SGAI 1.05361.11931.17831.1641.05481.01151.03751.10391.20041.2818
LVGI 1.06771.0651.04581.01741.01291.0241.05031.06041.02851.0086
TATA -0.0229-0.015-0.019-0.0081-0.0321-0.007-0.0604-0.1106-0.1132-0.1486
M-score -2.49-2.36-2.47-2.33-2.49-2.38-2.59-3.01-3.10-3.34
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