GURUFOCUS.COM » STOCK LIST » Technology » Software » The Hackett Group Inc (NAS:HCKT) » Definitions » Beneish M-Score

The Hackett Group (The Hackett Group) Beneish M-Score : -2.36 (As of Apr. 25, 2024)


View and export this data going back to 1998. Start your Free Trial

What is The Hackett Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for The Hackett Group's Beneish M-Score or its related term are showing as below:

HCKT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.45   Med: -2.73   Max: -2.32
Current: -2.36

During the past 13 years, the highest Beneish M-Score of The Hackett Group was -2.32. The lowest was -3.45. And the median was -2.73.


The Hackett Group Beneish M-Score Historical Data

The historical data trend for The Hackett Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Hackett Group Beneish M-Score Chart

The Hackett Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.87 -3.45 -2.32 -3.39 -2.36

The Hackett Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.39 -3.18 -2.73 -2.60 -2.36

Competitive Comparison of The Hackett Group's Beneish M-Score

For the Information Technology Services subindustry, The Hackett Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Hackett Group's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, The Hackett Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where The Hackett Group's Beneish M-Score falls into.



The Hackett Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 The Hackett Group 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 * 1.0669+0.528 * 1.0027+0.404 * 1.0289+0.892 * 1.0097+0.115 * 1.0641
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0732+4.679 * -0.011421-0.327 * 0.7082
=-2.36

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $52.1 Mil.
Revenue was 72.403 + 75.856 + 77.102 + 71.229 = $296.6 Mil.
Gross Profit was 29.266 + 30.213 + 30.215 + 26.688 = $116.4 Mil.
Total Current Assets was $75.4 Mil.
Total Assets was $181.4 Mil.
Property, Plant and Equipment(Net PPE) was $21.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.4 Mil.
Selling, General, & Admin. Expense(SGA) was $65.9 Mil.
Total Current Liabilities was $49.9 Mil.
Long-Term Debt & Capital Lease Obligation was $33.3 Mil.
Net Income was 7.85 + 9.42 + 8.72 + 8.161 = $34.2 Mil.
Non Operating Income was -1.178 + 0 + 0 + 0 = $-1.2 Mil.
Cash Flow from Operations was 25.584 + 7.167 + 7.713 + -3.063 = $37.4 Mil.
Total Receivables was $48.4 Mil.
Revenue was 70.117 + 72.033 + 75.928 + 75.664 = $293.7 Mil.
Gross Profit was 29.609 + 28.125 + 30.067 + 27.775 = $115.6 Mil.
Total Current Assets was $81.2 Mil.
Total Assets was $185.0 Mil.
Property, Plant and Equipment(Net PPE) was $20.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.4 Mil.
Selling, General, & Admin. Expense(SGA) was $60.9 Mil.
Total Current Liabilities was $59.6 Mil.
Long-Term Debt & Capital Lease Obligation was $60.2 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(52.113 / 296.59) / (48.376 / 293.742)
=0.175707 / 0.164689
=1.0669

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)
=(115.576 / 293.742) / (116.382 / 296.59)
=0.393461 / 0.3924
=1.0027

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (75.438 + 21.463) / 181.428) / (1 - (81.166 + 20.057) / 184.993)
=0.465898 / 0.452828
=1.0289

4. SGI = Sales Growth Index

Ratio of Revenue 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
=296.59 / 293.742
=1.0097

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(3.437 / (3.437 + 20.057)) / (3.421 / (3.421 + 21.463))
=0.146293 / 0.137478
=1.0641

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(65.942 / 296.59) / (60.854 / 293.742)
=0.222334 / 0.207168
=1.0732

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((33.342 + 49.888) / 181.428) / ((60.237 + 59.601) / 184.993)
=0.458749 / 0.647797
=0.7082

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
=(34.151 - -1.178 - 37.401) / 181.428
=-0.011421

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The Hackett Group has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.


The Hackett Group Beneish M-Score Related Terms

Thank you for viewing the detailed overview of The Hackett Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


The Hackett Group (The Hackett Group) Business Description

Traded in Other Exchanges
Address
1001 Brickell Bay Drive, Suite 3000, 30th Floor, Miami, FL, USA, 33131
The Hackett Group Inc is an advisory firm. The company's offerings include executive advisory programs, benchmarking, executive advisory, business transformation, and cloud enterprise application implementation. The company's executive and practices advisory programs offer performance metrics, peer-learning opportunities, and practice implementation practices. Benchmarking services help organizations measure and assess internal efficiency and effectiveness. The business transformation programs help customers develop strategies to improve performance. The company's technology advisory services help clients improve decision-making capabilities and deploy software applications. The Hackett Group generates the majority of its revenue in the United States.
Executives
Wix Alan T G director
Bofill Maria De Los Angeles director 15550 SW 54 STREET, MIAMI FL 33185-4144
Robert A Rivero director 1001 BRICKELL BAY DRIVE, SUITE 3000, MIAMI FL 33131
Richard N Hamlin director 1001 BRICKELL BAY DRIVE, STE 3000, MIAMI FL 33131
John R Harris director 2201 CEDEAR SPRINGS RD, SUITE 701, DALLAS TX 75201
Ted A Fernandez director, officer: Chairman and CEO
Roberto A Ramirez, officer: Chief Financial Officer ANSWERTHINK, INC., 1001 BRICKELL DRIVE, SUITE 3000, MIAMI FL 33131
David N Dungan director, officer: Vice Chairman and COO
Edwin A Huston director UNISYS CORP, UNISYS WAY, BLUE BELL PA 19424-0001
Terence M Graunke director, 10 percent owner 676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Paul G Yovovich 10 percent owner 676 NORTH MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Lake Capital Partners Lp 10 percent owner 676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Archstone Holdings Llc 10 percent owner
Lake Capital Investment Partners Lp 10 percent owner 676 N. MICHIGAN AVENUE, SUITE 3900, CHICAGO IL 60611
Archstone Intermediate Holdings Llc 10 percent owner 676 North Michigan Avenue, Suite 3900, Chicago IL 60611

The Hackett Group (The Hackett Group) Headlines

From GuruFocus

Chuck Royce's Recent Trade in The Hackett Group Inc

By GuruFocus Research 01-24-2024