Switch to:
Insight Enterprises Inc (NAS:NSIT)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

NSIT' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 64.29
Current: -2.5

-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 -2.35.


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 * 0.9411+0.528 * 1.0192+0.404 * 0.9709+0.892 * 1.0278+0.115 * 0.8438
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9883+4.679 * 0.0069-0.327 * 1.0052
=-2.50

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,039 Mil.
Revenue was 1219.679 + 1446.134 + 1237.668 + 1417.897 = $5,321 Mil.
Gross Profit was 161.813 + 182.239 + 171.82 + 194.599 = $710 Mil.
Total Current Assets was $1,495 Mil.
Total Assets was $1,717 Mil.
Property, Plant and Equipment(Net PPE) was $99 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $575 Mil.
Total Current Liabilities was $920 Mil.
Long-Term Debt was $95 Mil.
Net Income was 10.951 + 19.483 + 17.402 + 27.249 = $75 Mil.
Non Operating Income was -0.944 + 0.582 + -0.607 + -0.904 = $-2 Mil.
Cash Flow from Operations was 20.818 + 62.523 + -55.919 + 37.682 = $65 Mil.
Accounts Receivable was $1,074 Mil.
Revenue was 1214.53 + 1395.158 + 1151.02 + 1416.547 = $5,177 Mil.
Gross Profit was 163.745 + 181.155 + 168.668 + 190.927 = $704 Mil.
Total Current Assets was $1,501 Mil.
Total Assets was $1,759 Mil.
Property, Plant and Equipment(Net PPE) was $128 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $566 Mil.
Total Current Liabilities was $943 Mil.
Long-Term Debt was $91 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)
=(1039.313 / 5321.378) / (1074.465 / 5177.255)
=0.195309 / 0.20753565
=0.9411

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)
=(182.239 / 5177.255) / (161.813 / 5321.378)
=0.136075 / 0.1335126
=1.0192

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 - (1494.931 + 98.947) / 1717.436) / (1 - (1500.511 + 127.891) / 1758.721)
=0.07194329 / 0.07409873
=0.9709

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
=5321.378 / 5177.255
=1.0278

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))
=(41.116 / (41.116 + 127.891)) / (40.086 / (40.086 + 98.947))
=0.24327986 / 0.28832004
=0.8438

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)
=(575.334 / 5321.378) / (566.351 / 5177.255)
=0.10811748 / 0.10939214
=0.9883

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)
=((95.348 + 919.541) / 1717.436) / ((91.246 + 942.652) / 1758.721)
=0.59093265 / 0.58786925
=1.0052

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
=(75.085 - -1.873 - 65.104) / 1717.436
=0.0069

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 -2.50 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.13191.00381.02011.0830.94531.00490.99511.01121.00710.9411
GMI 0.9880.99970.97770.98640.99920.99240.99441.01411.01381.0192
AQI 0.80120.90490.89590.87480.96060.81150.84280.86020.86190.9709
SGI 1.00270.98630.95430.95870.97040.98821.01021.03321.03341.0278
DEPI 0.97610.95090.94820.93450.93570.93980.89170.87830.85010.8438
SGAI 1.01261.01711.05571.05551.031.01831.00510.98170.98830.9883
LVGI 0.95640.91640.96970.98650.94991.02810.96880.99751.02961.0052
TATA 0.0121-0.0103-0.0339-0.0191-0.0018-0.0287-0.00740.0135-0.01690.0069
M-score -2.38-2.56-2.72-2.60-2.58-2.72-2.58-2.44-2.60-2.50
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK