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Insight Enterprises Inc (NAS:NSIT)
Beneish M-Score
-2.51 (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.

Insight Enterprises Inc has a M-score of -2.51 suggests that the company is not a manipulator.

NSIT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.79   Max: 64.29
Current: -2.51

-4.79
64.29

During the past 13 years, the highest Beneish M-Score of Insight Enterprises Inc was 64.29. The lowest was -4.79. And the median was -2.36.


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 Insight Enterprises 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 * 1.0338+0.528 * 1.0225+0.404 * 0.9152+0.892 * 1.0317+0.115 * 0.9208
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9811+4.679 * -0.0064-0.327 * 1.0971
=-2.51

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,106 Mil.
Revenue was 1342.195 + 1424.031 + 1219.679 + 1446.134 = $5,432 Mil.
Gross Profit was 182.251 + 191.415 + 161.813 + 182.239 = $718 Mil.
Total Current Assets was $1,502 Mil.
Total Assets was $1,717 Mil.
Property, Plant and Equipment(Net PPE) was $93 Mil.
Depreciation, Depletion and Amortization(DDA) was $38 Mil.
Selling, General & Admin. Expense(SGA) was $581 Mil.
Total Current Liabilities was $934 Mil.
Long-Term Debt was $85 Mil.
Net Income was 20.825 + 25.499 + 10.951 + 19.483 = $77 Mil.
Non Operating Income was 1.204 + -0.301 + -0.944 + 0.582 = $1 Mil.
Cash Flow from Operations was -71.682 + 75.506 + 20.818 + 62.523 = $87 Mil.
Accounts Receivable was $1,037 Mil.
Revenue was 1237.668 + 1417.897 + 1214.53 + 1395.158 = $5,265 Mil.
Gross Profit was 171.82 + 194.599 + 163.745 + 181.155 = $711 Mil.
Total Current Assets was $1,417 Mil.
Total Assets was $1,656 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $574 Mil.
Total Current Liabilities was $842 Mil.
Long-Term Debt was $54 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)
=(1106.231 / 5432.039) / (1037.173 / 5265.253)
=0.20364931 / 0.19698446
=1.0338

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)
=(191.415 / 5265.253) / (182.251 / 5432.039)
=0.13509683 / 0.13212681
=1.0225

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 - (1502.497 + 92.864) / 1716.596) / (1 - (1416.878 + 110.965) / 1655.608)
=0.07062524 / 0.07717105
=0.9152

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
=5432.039 / 5265.253
=1.0317

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))
=(40.855 / (40.855 + 110.965)) / (38.348 / (38.348 + 92.864))
=0.26910157 / 0.29225985
=0.9208

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)
=(581.19 / 5432.039) / (574.172 / 5265.253)
=0.10699297 / 0.10904927
=0.9811

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)
=((85.057 + 933.757) / 1716.596) / ((53.591 + 842.055) / 1655.608)
=0.59350832 / 0.54097709
=1.0971

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
=(76.758 - 0.541 - 87.165) / 1716.596
=-0.0064

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.

Insight Enterprises Inc has a M-score of -2.51 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.

Insight Enterprises Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01371.83470.8070.92351.170.97820.96761.13190.94531.0071
GMI 0.99230.89810.95111.00141.00051.02331.00150.9880.99921.0138
AQI 0.96582.38990.94220.58320.96750.79371.02170.80120.96060.8619
SGI 1.05821.12861.3361.00520.85731.16271.09921.00270.97041.0334
DEPI 1.3020.66810.82850.86160.9651.01580.97360.97610.93570.8501
SGAI 0.95981.14971.07881.05011.04220.88910.97571.01261.030.9883
LVGI 1.01571.61860.95521.28920.96180.98260.96730.95640.94991.0296
TATA 0.0450.0016-0.0128-0.2306-0.0551-0.0115-0.00810.0121-0.0018-0.0169
M-score -2.19-1.35-2.49-3.91-2.72-2.45-2.44-2.38-2.58-2.60

Insight Enterprises Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.02011.0830.94531.00490.99511.01121.00710.94111.06991.0338
GMI 0.97770.98640.99920.99240.99441.01411.01381.01921.031.0225
AQI 0.89590.87480.96060.81150.84280.86020.86190.97090.87130.9152
SGI 0.95430.95870.97040.98821.01021.03321.03341.02781.02881.0317
DEPI 0.94820.93450.93570.93980.89170.87830.85010.84380.90930.9208
SGAI 1.05571.05551.031.01831.00510.98170.98830.98830.97980.9811
LVGI 0.96970.98650.94991.02810.96880.99751.02961.00521.10111.0971
TATA -0.0339-0.0191-0.0018-0.0287-0.00740.0135-0.01690.0069-0.0132-0.0064
M-score -2.72-2.60-2.58-2.72-2.58-2.44-2.60-2.50-2.53-2.51
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