N has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 12 years, the highest Beneish M-Score of NetSuite Inc was 1.33. The lowest was -3.56. And the median was -3.12.
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 NetSuite 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 * 1.2305||+||0.528 * 0.99||+||0.404 * 1.6784||+||0.892 * 1.3353||+||0.115 * 0.943|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0093||+||4.679 * -0.1917||-||0.327 * 1.04|
|This Year (Sep14) TTM:||Last Year (Sep13) TTM:|
|Accounts Receivable was $107.0 Mil.|
Revenue was 143.66 + 131.794 + 122.961 + 115.008 = $513.4 Mil.
Gross Profit was 97.661 + 90.197 + 84.284 + 78.057 = $350.2 Mil.
Total Current Assets was $609.9 Mil.
Total Assets was $863.9 Mil.
Property, Plant and Equipment(Net PPE) was $54.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.8 Mil.
Selling, General & Admin. Expense(SGA) was $327.7 Mil.
Total Current Liabilities was $336.9 Mil.
Long-Term Debt was $269.4 Mil.
Net Income was -29.295 + -23.164 + -22.233 + -20.21 = $-94.9 Mil.
Non Operating Income was -0.132 + -0.199 + -0.11 + -0.132 = $-0.6 Mil.
Cash Flow from Operations was 16.256 + 18.581 + 19.135 + 17.338 = $71.3 Mil.
|Accounts Receivable was $65.1 Mil.
Revenue was 106.875 + 100.996 + 91.629 + 85.006 = $384.5 Mil.
Gross Profit was 71.683 + 67.59 + 61.984 + 58.383 = $259.6 Mil.
Total Current Assets was $580.1 Mil.
Total Assets was $722.7 Mil.
Property, Plant and Equipment(Net PPE) was $43.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.2 Mil.
Selling, General & Admin. Expense(SGA) was $243.1 Mil.
Total Current Liabilities was $236.4 Mil.
Long-Term Debt was $251.2 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(106.995 / 513.423)||/||(65.118 / 384.506)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(90.197 / 384.506)||/||(97.661 / 513.423)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (609.884 + 54.14) / 863.938)||/||(1 - (580.141 + 42.957) / 722.738)|
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.
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))|
|=||(20.178 / (20.178 + 42.957))||/||(27.756 / (27.756 + 54.14))|
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)|
|=||(327.679 / 513.423)||/||(243.132 / 384.506)|
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)|
|=||((269.367 + 336.874) / 863.938)||/||((251.201 + 236.439) / 722.738)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-94.902 - -0.573||-||71.31)||/||863.938|
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.
NetSuite Inc has a M-score of -2.62 suggests that the company will not be a manipulator.
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
NetSuite Inc Annual Data
NetSuite Inc Quarterly Data