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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-2.33 (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 -2.33 suggests that the company is not a manipulator.

MTZ' s 10-Year Beneish M-Score Range
Min: -4.56   Max: -0.58
Current: -2.33

-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 -2.46.


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 * 1.1845+0.528 * 0.9266+0.404 * 0.9548+0.892 * 1.1185+0.115 * 0.9715
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1623+4.679 * -0.0067-0.327 * 1.0174
=-2.33

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,196 Mil.
Revenue was 964.029 + 1159.13 + 1269.385 + 977.624 = $4,370 Mil.
Gross Profit was 122.975 + 172.05 + 188.253 + 154.969 = $638 Mil.
Total Current Assets was $1,358 Mil.
Total Assets was $3,013 Mil.
Property, Plant and Equipment(Net PPE) was $510 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General & Admin. Expense(SGA) was $220 Mil.
Total Current Liabilities was $820 Mil.
Long-Term Debt was $841 Mil.
Net Income was 16.023 + 41.501 + 46.138 + 34.941 = $139 Mil.
Non Operating Income was -0.345 + 2.863 + 2.778 + -0.322 = $5 Mil.
Cash Flow from Operations was -20.394 + 75.411 + 110.424 + -11.563 = $154 Mil.
Accounts Receivable was $902 Mil.
Revenue was 918.648 + 932.358 + 1067.3 + 988.874 = $3,907 Mil.
Gross Profit was 127.149 + 138.219 + 142.996 + 120.37 = $529 Mil.
Total Current Assets was $1,146 Mil.
Total Assets was $2,541 Mil.
Property, Plant and Equipment(Net PPE) was $383 Mil.
Depreciation, Depletion and Amortization(DDA) was $103 Mil.
Selling, General & Admin. Expense(SGA) was $169 Mil.
Total Current Liabilities was $692 Mil.
Long-Term Debt was $685 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)
=(1195.603 / 4370.168) / (902.426 / 3907.18)
=0.27358285 / 0.23096607
=1.1845

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)
=(172.05 / 3907.18) / (122.975 / 4370.168)
=0.13532369 / 0.14604633
=0.9266

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 - (1357.936 + 509.585) / 3013.407) / (1 - (1145.749 + 383.174) / 2540.866)
=0.38026261 / 0.39826697
=0.9548

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
=4370.168 / 3907.18
=1.1185

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))
=(103.4 / (103.4 + 383.174)) / (142.669 / (142.669 + 509.585))
=0.21250622 / 0.21873227
=0.9715

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)
=(219.844 / 4370.168) / (169.105 / 3907.18)
=0.05030562 / 0.04328058
=1.1623

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)
=((841.335 + 820.389) / 3013.407) / ((685.39 + 691.729) / 2540.866)
=0.5514436 / 0.54198805
=1.0174

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
=(138.603 - 4.974 - 153.878) / 3013.407
=-0.0067

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 -2.33 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.10151.28031.19280.9461.03061.03981.04341.20731.11431.1845
GMI 1.10421.17561.1881.13941.01270.93040.83940.81590.88080.9266
AQI 1.05231.04910.82030.86070.87980.840.96170.94110.91520.9548
SGI 1.34541.29931.29291.29761.29261.30111.18961.16221.16051.1185
DEPI 1.09160.94710.90460.91091.06031.10251.17181.13820.93630.9715
SGAI 0.91110.93610.93130.9410.88620.91321.05361.11931.17831.1623
LVGI 0.94530.9711.11611.09581.03761.1161.06771.0651.04461.0174
TATA 0.04770.04810.0526-0.0305-0.0236-0.0111-0.0208-0.0144-0.0198-0.0067
M-score -1.74-1.60-1.81-2.42-2.33-2.34-2.48-2.36-2.47-2.33
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