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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-3.30 (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 -3.30 suggests that the company is not a manipulator.

MTZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.87   Max: -0.58
Current: -3.3

-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 -2.57.


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 * 0.766+0.528 * 1.1876+0.404 * 1.0741+0.892 * 0.9125+0.115 * 0.8528
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2228+4.679 * -0.1277-0.327 * 1.0081
=-3.30

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $911 Mil.
Revenue was 1027.424 + 1111.01 + 1066.629 + 1003.268 = $4,208 Mil.
Gross Profit was 111.193 + 138.299 + 120.682 + 116.854 = $487 Mil.
Total Current Assets was $1,133 Mil.
Total Assets was $2,940 Mil.
Property, Plant and Equipment(Net PPE) was $559 Mil.
Depreciation, Depletion and Amortization(DDA) was $170 Mil.
Selling, General & Admin. Expense(SGA) was $266 Mil.
Total Current Liabilities was $753 Mil.
Long-Term Debt was $945 Mil.
Net Income was -76.764 + 7.618 + -3.7 + -6.263 = $-79 Mil.
Non Operating Income was -66.759 + -6.702 + 2.353 + 0.007 = $-71 Mil.
Cash Flow from Operations was 106.811 + 94.749 + 47.027 + 118.826 = $367 Mil.
Accounts Receivable was $1,304 Mil.
Revenue was 1231.265 + 1315.488 + 1107.232 + 957.818 = $4,612 Mil.
Gross Profit was 168.203 + 192.627 + 156.517 + 116.494 = $634 Mil.
Total Current Assets was $1,532 Mil.
Total Assets was $3,564 Mil.
Property, Plant and Equipment(Net PPE) was $623 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $981 Mil.
Long-Term Debt was $1,061 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)
=(911.106 / 4208.331) / (1303.552 / 4611.803)
=0.21650056 / 0.28265561
=0.766

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)
=(138.299 / 4611.803) / (111.193 / 4208.331)
=0.13743887 / 0.11572949
=1.1876

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 - (1132.902 + 558.7) / 2940.197) / (1 - (1531.751 + 623.1) / 3563.98)
=0.42466372 / 0.39538073
=1.0741

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
=4208.331 / 4611.803
=0.9125

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))
=(154.452 / (154.452 + 623.1)) / (169.662 / (169.662 + 558.7))
=0.1986388 / 0.23293637
=0.8528

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)
=(265.911 / 4208.331) / (238.304 / 4611.803)
=0.06318681 / 0.05167263
=1.2228

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)
=((945.464 + 752.789) / 2940.197) / ((1061.159 + 980.848) / 3563.98)
=0.57759837 / 0.57295692
=1.0081

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
=(-79.109 - -71.101 - 367.413) / 2940.197
=-0.1277

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 -3.30 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.20731.11471.18621.00121.02411.07730.88780.85120.75780.766
GMI 0.81590.88080.93481.02591.05721.08081.06311.08741.13921.1876
AQI 0.94110.91610.95480.9920.97641.02461.08681.09041.18481.0741
SGI 1.16221.16051.11691.15341.10781.06641.06721.02740.97190.9125
DEPI 1.14270.93110.96681.02511.04091.12791.03190.88040.8710.8528
SGAI 1.11931.17831.1641.05481.01151.03751.10391.20041.28181.2228
LVGI 1.0651.04581.01741.01291.0241.05031.06041.02851.00861.0081
TATA -0.015-0.019-0.0081-0.0321-0.007-0.0604-0.1106-0.1132-0.1486-0.1277
M-score -2.36-2.47-2.33-2.49-2.38-2.59-3.01-3.10-3.34-3.30
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