Switch to:
MasTec Inc (NYSE:MTZ)
Beneish M-Score
-2.80 (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 -2.80 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: -2.8

-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 -2.54.


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 * 1.0287+0.528 * 1.1184+0.404 * 0.9625+0.892 * 0.9412+0.115 * 0.9576
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9714+4.679 * -0.0718-0.327 * 1.0071
=-2.80

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,091 Mil.
Revenue was 1232.404 + 974.225 + 1027.424 + 1111.01 = $4,345 Mil.
Gross Profit was 164.222 + 89.824 + 111.193 + 138.299 = $504 Mil.
Total Current Assets was $1,322 Mil.
Total Assets was $3,124 Mil.
Property, Plant and Equipment(Net PPE) was $559 Mil.
Depreciation, Depletion and Amortization(DDA) was $163 Mil.
Selling, General & Admin. Expense(SGA) was $251 Mil.
Total Current Liabilities was $866 Mil.
Long-Term Debt was $998 Mil.
Net Income was 24.088 + -2.692 + -76.764 + 7.618 = $-48 Mil.
Non Operating Income was -1.035 + 16.422 + -66.759 + -6.702 = $-58 Mil.
Cash Flow from Operations was 12.637 + 15.851 + 106.811 + 99.313 = $235 Mil.
Accounts Receivable was $1,127 Mil.
Revenue was 1066.629 + 1003.268 + 1231.265 + 1315.488 = $4,617 Mil.
Gross Profit was 120.682 + 116.854 + 168.203 + 192.627 = $598 Mil.
Total Current Assets was $1,354 Mil.
Total Assets was $3,357 Mil.
Property, Plant and Equipment(Net PPE) was $615 Mil.
Depreciation, Depletion and Amortization(DDA) was $170 Mil.
Selling, General & Admin. Expense(SGA) was $274 Mil.
Total Current Liabilities was $853 Mil.
Long-Term Debt was $1,137 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)
=(1091.025 / 4345.063) / (1126.927 / 4616.65)
=0.25109532 / 0.24410059
=1.0287

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)
=(598.366 / 4616.65) / (503.538 / 4345.063)
=0.12961043 / 0.11588739
=1.1184

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 - (1321.842 + 559.057) / 3123.943) / (1 - (1354.265 + 614.826) / 3356.903)
=0.39790867 / 0.41342035
=0.9625

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
=4345.063 / 4616.65
=0.9412

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))
=(170.055 / (170.055 + 614.826)) / (163.474 / (163.474 + 559.057))
=0.21666342 / 0.22625188
=0.9576

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)
=(250.531 / 4345.063) / (274.02 / 4616.65)
=0.05765877 / 0.05935473
=0.9714

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)
=((998.44 + 866.434) / 3123.943) / ((1136.783 + 852.968) / 3356.903)
=0.5969616 / 0.59273414
=1.0071

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
=(-47.75 - -58.074 - 234.612) / 3123.943
=-0.0718

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 -2.80 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

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 0.95950.971.23011.04450.96291.05230.87980.91611.02461.0741
SGI 1.12131.10351.32851.17761.321.32121.31631.16051.06640.9125
DEPI 1.36391.11371.18460.76560.82131.09161.06620.93111.12790.8528
SGAI 1.05561.41730.58860.91760.87670.89460.90261.17831.03751.2228
LVGI 0.7511.10011.09970.93660.99670.94531.03761.04581.05031.0081
TATA -0.1621-0.11190.0061-0.0586-0.07630.0269-0.0236-0.0205-0.0604-0.1277
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.18621.00121.02411.07730.88780.85120.75780.7660.95511.0287
GMI 0.93481.02591.05721.08081.06311.08741.13921.18761.23721.1184
AQI 0.95480.9920.97641.02461.08681.09041.18481.07411.00470.9625
SGI 1.11691.15341.10781.06641.06721.02740.97190.91250.89740.9412
DEPI 0.96681.02511.04091.12791.03190.88040.8710.85280.91150.9576
SGAI 1.1641.05481.01151.03751.10391.20041.28181.22281.08390.9714
LVGI 1.01741.01291.0241.05031.06041.02851.00861.00811.00231.0071
TATA -0.0081-0.0321-0.007-0.0604-0.1106-0.1118-0.1486-0.1277-0.0955-0.0718
M-score -2.33-2.49-2.38-2.59-3.01-3.09-3.34-3.30-2.96-2.80
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK