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MasTec, Inc. (NYSE:MTZ)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

MTZ' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -0.58
Current: -2.48

-3.87
-0.58

During the past 13 years, the highest Beneish M-Score of MasTec, Inc. was -0.58. The lowest was -3.87. And the median was -2.53.


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 * 1.1143+0.528 * 0.8808+0.404 * 0.9152+0.892 * 1.1605+0.115 * 0.9363
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1783+4.679 * -0.0205-0.327 * 1.0446
=-2.48

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,134 Mil.
Revenue was 1159.13 + 1269.385 + 977.624 + 918.648 = $4,325 Mil.
Gross Profit was 172.05 + 188.253 + 154.969 + 127.149 = $642 Mil.
Total Current Assets was $1,306 Mil.
Total Assets was $2,920 Mil.
Property, Plant and Equipment(Net PPE) was $488 Mil.
Depreciation, Depletion and Amortization(DDA) was $141 Mil.
Selling, General & Admin. Expense(SGA) was $215 Mil.
Total Current Liabilities was $826 Mil.
Long-Term Debt was $765 Mil.
Net Income was 41.501 + 46.138 + 34.941 + 18.37 = $141 Mil.
Non Operating Income was 2.863 + 2.778 + -0.322 + -4.798 = $1 Mil.
Cash Flow from Operations was 75.411 + 110.424 + -17.249 + 31.816 = $200 Mil.
Accounts Receivable was $877 Mil.
Revenue was 932.358 + 1067.3 + 988.874 + 738.257 = $3,727 Mil.
Gross Profit was 138.219 + 142.996 + 120.37 + 86.01 = $488 Mil.
Total Current Assets was $1,050 Mil.
Total Assets was $2,416 Mil.
Property, Plant and Equipment(Net PPE) was $349 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $158 Mil.
Total Current Liabilities was $714 Mil.
Long-Term Debt was $546 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)
=(1134.3 / 4324.787) / (877.2 / 3726.789)
=0.26227881 / 0.23537689
=1.1143

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)
=(188.253 / 3726.789) / (172.05 / 4324.787)
=0.13083515 / 0.14854396
=0.8808

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 - (1305.983 + 488.132) / 2919.638) / (1 - (1049.641 + 348.858) / 2416.308)
=0.38550087 / 0.42122486
=0.9152

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
=4324.787 / 3726.789
=1.1605

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))
=(92.601 / (92.601 + 348.858)) / (140.928 / (140.928 + 488.132))
=0.20976127 / 0.2240295
=0.9363

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)
=(215.402 / 4324.787) / (157.524 / 3726.789)
=0.04980638 / 0.04226802
=1.1783

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)
=((765.425 + 825.546) / 2919.638) / ((546.323 + 714.135) / 2416.308)
=0.54492064 / 0.52164625
=1.0446

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
=(140.95 - 0.521 - 200.402) / 2919.638
=-0.0205

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 -2.48 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 0.69591.12940.80860.89991.38930.83781.04221.12171.0121.1143
GMI 1.06910.78570.98530.99860.97350.94961.04151.11491.0030.8808
AQI 0.95991.05320.95950.971.23011.04450.96291.05230.87980.9152
SGI 1.13331.0391.12131.10351.32851.17761.321.32121.31631.1605
DEPI 1.14160.8141.36391.11371.18460.76560.82131.09161.06030.9363
SGAI 0.9490.83411.05561.41730.58860.91760.87670.89460.90261.1783
LVGI 1.0281.00730.7511.10011.09970.93660.99670.94531.03761.0446
TATA -0.0927-0.0005-0.1621-0.11190.0061-0.0407-0.0770.0478-0.0236-0.0205
M-score -3.04-2.42-3.22-3.11-1.66-2.66-2.51-1.73-2.33-2.48

MasTec, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.2491.10151.28031.19280.9461.03061.03981.04341.20731.1143
GMI 1.10691.10421.17561.1881.13941.01270.93040.83940.81590.8808
AQI 1.06481.05231.04910.82030.86070.87980.840.96170.94110.9152
SGI 1.31051.34541.29931.29291.29761.29261.30111.18961.16221.1605
DEPI 1.14981.09160.94710.90460.91091.06031.10251.17181.13820.9363
SGAI 0.8330.91110.93610.93130.9410.88620.91321.05361.11931.1783
LVGI 0.84810.94530.9711.11611.09581.03761.1161.06771.0651.0446
TATA 0.02530.04770.04810.0526-0.0305-0.0236-0.0142-0.0216-0.0151-0.0205
M-score -1.68-1.74-1.60-1.81-2.42-2.33-2.35-2.48-2.36-2.48
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