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National Financial Partners Corporation (NYSE:NFP)
Beneish M-Score
0.00 (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.

National Financial Partners Corporation has a M-score of -2.74 suggests that the company is not a manipulator.

NFP' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of National Financial Partners Corporation was 0.00. The lowest was 0.00. And the median was 0.00.


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 National Financial Partners Corporation 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 * 1.0877+0.528 * 0.9681+0.404 * 0.9704+0.892 * 1.0356+0.115 * 0.9544
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.064+4.679 * -0.0679-0.327 * 1.0355
=-2.74

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

This Year (Mar13) TTM:Last Year (Mar12) TTM:
Accounts Receivable was $128 Mil.
Revenue was 263.471 + 300.135 + 252.036 + 255.436 = $1,071 Mil.
Gross Profit was 182.457 + 215.097 + 175.867 + 176.463 = $750 Mil.
Total Current Assets was $339 Mil.
Total Assets was $889 Mil.
Property, Plant and Equipment(Net PPE) was $29 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $624 Mil.
Total Current Liabilities was $183 Mil.
Long-Term Debt was $222 Mil.
Net Income was 4.151 + 19.403 + 0.051 + 4.866 = $28 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 21.174 + 14.543 + 33.599 + 19.519 = $89 Mil.
Accounts Receivable was $114 Mil.
Revenue was 254.131 + 289.162 + 251.531 + 239.435 = $1,034 Mil.
Gross Profit was 171.981 + 195.266 + 171.234 + 162.547 = $701 Mil.
Total Current Assets was $306 Mil.
Total Assets was $856 Mil.
Property, Plant and Equipment(Net PPE) was $32 Mil.
Depreciation, Depletion and Amortization(DDA) was $45 Mil.
Selling, General & Admin. Expense(SGA) was $567 Mil.
Total Current Liabilities was $178 Mil.
Long-Term Debt was $199 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)
=(127.982 / 1071.078) / (113.618 / 1034.259)
=0.11948896 / 0.10985449
=1.0877

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)
=(215.097 / 1034.259) / (182.457 / 1071.078)
=0.67780701 / 0.70012081
=0.9681

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 - (338.944 + 28.865) / 889.335) / (1 - (306.419 + 32.142) / 855.678)
=0.58642244 / 0.60433598
=0.9704

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
=1071.078 / 1034.259
=1.0356

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))
=(45.413 / (45.413 + 32.142)) / (45.82 / (45.82 + 28.865))
=0.58555864 / 0.61351008
=0.9544

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)
=(624.261 / 1071.078) / (566.52 / 1034.259)
=0.5828343 / 0.54775448
=1.064

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)
=((221.688 + 183.339) / 889.335) / ((198.669 + 177.676) / 855.678)
=0.45542681 / 0.43982082
=1.0355

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
=(28.471 - 0 - 88.835) / 889.335
=-0.0679

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.

National Financial Partners Corporation has a M-score of -2.74 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.

National Financial Partners Corporation Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 1.20661.11841.00181.17360.89291.26570.84660.92431.0951
GMI 1.02691.11761.06220.98451.03981.01080.25881.02440.9681
AQI 0.97840.99331.03161.00771.05350.83650.84041.02771.0476
SGI 1.33341.3941.20831.10880.96320.82431.03551.03211.0477
DEPI 1.01531.07640.96120.97411.1650.84121.09550.95950.9435
SGAI 1.12160.89090.92731.02891.13921.11929.37220.93881.0475
LVGI 1.29711.18131.01411.50730.91721.27940.98730.98911.0147
TATA -0.0556-0.0297-0.0197-0.0347-0.027-0.636-0.0861-0.0886-0.0257
M-score -2.36-2.13-2.34-2.56-2.67-5.56-4.87-2.90-2.49

National Financial Partners Corporation Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
DSRI 0.84660.82210.84330.84940.92431.04961.14211.16021.09511.0877
GMI 0.31990.24550.42740.61390.82891.00650.99920.98590.96810.9681
AQI 0.84040.85111.00211.02741.02771.07561.05931.00331.04760.9704
SGI 1.03551.03481.02811.03461.03211.04481.05611.04191.04771.0356
DEPI 1.09551.07261.06681.02990.95950.94290.93040.93890.94350.9544
SGAI 7.262411.93693.2861.74241.21150.94230.96171.00731.04181.064
LVGI 0.98730.97870.85490.94110.98911.03331.05991.03261.01471.0355
TATA -0.0861-0.0784-0.0832-0.0937-0.0886-0.084-0.0634-0.061-0.0257-0.0679
M-score -4.48-5.30-3.63-3.32-3.05-2.76-2.59-2.61-2.49-2.74
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