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MasTec Inc (NYSE:MTZ)
Beneish M-Score
-3.58 (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 -3.58 suggests that the company is not a manipulator.

MTZ' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -0.58
Current: -3.58

-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 -2.55.


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+0.528 * 1.082+0.404 * 1.0105+0.892 * 1.0671+0.115 * 1.1238
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0368+4.679 * -0.059-0.327 * 1.0499
=-3.58

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1236.66 + 1309.596 + 1104.556 + 964.029 = $4,615 Mil.
Gross Profit was 170.262 + 186.635 + 153.667 + 122.975 = $634 Mil.
Total Current Assets was $1,552 Mil.
Total Assets was $3,558 Mil.
Property, Plant and Equipment(Net PPE) was $620 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $974 Mil.
Long-Term Debt was $1,061 Mil.
Net Income was 22.297 + 45.271 + 32.05 + 16.023 = $116 Mil.
Non Operating Income was 2.693 + 1.416 + -0.298 + -0.345 = $3 Mil.
Cash Flow from Operations was 241.019 + 25.7 + 75.713 + -20.394 = $322 Mil.
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.



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)
=(0 / 4614.841) / (1134.3 / 4324.787)
=0 / 0.26227881
=0

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)
=(186.635 / 4324.787) / (170.262 / 4614.841)
=0.14854396 / 0.13728295
=1.082

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 - (1551.815 + 620.306) / 3558.207) / (1 - (1305.983 + 488.132) / 2919.638)
=0.3895462 / 0.38550087
=1.0105

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
=4614.841 / 4324.787
=1.0671

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))
=(140.928 / (140.928 + 488.132)) / (154.452 / (154.452 + 620.306))
=0.2240295 / 0.19935515
=1.1238

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)
=(238.304 / 4614.841) / (215.402 / 4324.787)
=0.05163862 / 0.04980638
=1.0368

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)
=((1061.159 + 974.493) / 3558.207) / ((765.425 + 825.546) / 2919.638)
=0.5721005 / 0.54492064
=1.0499

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
=(115.641 - 3.466 - 322.038) / 3558.207
=-0.059

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 -3.58 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 1.00210.84910.88671.53940.83781.04221.12171.0121.11430
GMI 0.78570.98530.99860.97350.94961.04151.11491.0030.88081.082
AQI 1.05320.95950.971.23011.04450.96291.05230.87980.91521.0105
SGI 1.0391.12131.10351.32851.17761.321.32121.31631.16051.0671
DEPI 0.8141.36391.11371.18460.76560.82131.09161.06030.93631.1238
SGAI 0.83411.05561.41730.58860.91760.87670.89460.90261.17831.0368
LVGI 1.00730.7511.10011.09970.93660.99670.94531.03761.04461.0499
TATA -0.0005-0.1621-0.11190.0061-0.0407-0.0770.0478-0.0236-0.0205-0.0603
M-score -2.53-3.18-3.12-1.52-2.66-2.51-1.73-2.33-2.48-3.58

MasTec Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.03061.03981.04341.20731.11431.18451.00041.024700
GMI 1.01270.93040.83940.81590.88080.92661.02091.06061.0821.0846
AQI 0.87980.840.96170.94110.91520.95480.9920.97641.01051.0705
SGI 1.29261.30111.18961.16221.16051.11851.15431.10721.06711.0648
DEPI 1.06031.10251.17181.13820.93630.97151.02971.0451.12381.0273
SGAI 0.88620.91321.05361.11931.17831.16231.05391.01211.03681.1065
LVGI 1.03761.1161.06771.0651.04461.01741.01291.0241.04991.0592
TATA -0.0236-0.0111-0.0229-0.015-0.019-0.0059-0.0301-0.006-0.059-0.1104
M-score -2.33-2.34-2.49-2.36-2.47-2.33-2.49-2.37-3.58-3.82
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