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Insight Enterprises Inc (NAS:NSIT)
Beneish M-Score
-2.44 (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 -2.44 suggests that the company is not a manipulator.

NSIT' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 64.29
Current: -2.44

-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 -2.31.


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 * 1.0112+0.528 * 1.0141+0.404 * 0.8602+0.892 * 1.0332+0.115 * 0.8783
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9817+4.679 * 0.0135-0.327 * 0.9975
=-2.44

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 17.402 + 27.249 + 11.55 + 20.407 = $77 Mil.
Non Operating Income was -0.607 + -0.904 + -0.745 + -0.777 = $-3 Mil.
Cash Flow from Operations was -55.919 + 37.682 + 66.033 + 9.49 = $57 Mil.
Accounts Receivable was $993 Mil.
Revenue was 1151.02 + 1416.547 + 1181.622 + 1346.675 = $5,096 Mil.
Gross Profit was 168.668 + 190.927 + 158.137 + 180.393 = $698 Mil.
Total Current Assets was $1,339 Mil.
Total Assets was $1,620 Mil.
Property, Plant and Equipment(Net PPE) was $135 Mil.
Depreciation, Depletion and Amortization(DDA) was $42 Mil.
Selling, General & Admin. Expense(SGA) was $566 Mil.
Total Current Liabilities was $790 Mil.
Long-Term Debt was $89 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)
=(1037.173 / 5265.253) / (992.733 / 5095.864)
=0.19698446 / 0.19481152
=1.0112

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)
=(194.599 / 5095.864) / (171.82 / 5265.253)
=0.13699836 / 0.13509683
=1.0141

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 - (1416.878 + 110.965) / 1655.608) / (1 - (1339.088 + 135.306) / 1619.696)
=0.07717105 / 0.08970943
=0.8602

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
=5265.253 / 5095.864
=1.0332

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))
=(41.879 / (41.879 + 135.306)) / (40.855 / (40.855 + 110.965))
=0.23635748 / 0.26910157
=0.8783

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)
=(574.172 / 5265.253) / (566.063 / 5095.864)
=0.10904927 / 0.11108283
=0.9817

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)
=((53.591 + 842.055) / 1655.608) / ((88.503 + 789.929) / 1619.696)
=0.54097709 / 0.54234375
=0.9975

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
=(76.608 - -3.033 - 57.286) / 1655.608
=0.0135

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 -2.44 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.12491.01371.83470.8070.92351.170.97820.96761.13190.9453
GMI 1.00760.99230.89810.95111.00141.00051.02331.00150.9880.9992
AQI 0.76840.96582.38990.94220.58320.96750.79371.02170.80120.9606
SGI 1.04251.05821.12861.3361.00520.85731.16271.09921.00270.9704
DEPI 1.56381.3020.66810.82850.86160.9651.01580.97360.97610.9357
SGAI 0.96180.95981.14971.07881.05011.04220.88910.97571.01261.03
LVGI 0.82891.01571.61860.95521.28920.96180.98260.96730.95640.9499
TATA 0.07320.0450.0016-0.0128-0.2306-0.0551-0.0115-0.00810.0121-0.0018
M-score -1.95-2.19-1.35-2.49-3.91-2.72-2.45-2.44-2.38-2.58

Insight Enterprises Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.04371.04081.13191.00381.02011.0830.94531.00490.99511.0112
GMI 1.00430.98750.9880.99970.97770.98640.99920.99240.99441.0141
AQI 0.96940.9790.80120.90490.89590.87480.96060.81150.84280.8602
SGI 1.03361.00931.00270.98630.95430.95870.97040.98821.01021.0332
DEPI 0.97560.99170.97610.95090.94820.93450.93570.93980.89170.8783
SGAI 0.98370.99941.01261.01711.05571.05551.031.01831.00510.9817
LVGI 0.97730.90380.95640.91640.96970.98650.94991.02810.96880.9975
TATA -0.0138-0.01970.0121-0.0103-0.0339-0.0191-0.0018-0.0287-0.00740.0135
M-score -2.48-2.51-2.38-2.56-2.72-2.60-2.58-2.72-2.58-2.44
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