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Insight Enterprises Inc (NAS:NSIT)
Beneish M-Score
-2.23 (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 -2.23 suggests that the company is not a manipulator.

NSIT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.12   Max: 64.29
Current: -2.23

-4.12
64.29

During the past 13 years, the highest Beneish M-Score of Insight Enterprises Inc was 64.29. The lowest was -4.12. And the median was -2.38.


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 * 1.056+0.528 * 0.9743+0.404 * 1.2804+0.892 * 0.995+0.115 * 0.8573
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0172+4.679 * 0.0283-0.327 * 1.038
=-2.23

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,162 Mil.
Revenue was 1392.716 + 1456.234 + 1168.982 + 1387.185 = $5,405 Mil.
Gross Profit was 181.808 + 209.217 + 161.108 + 180.853 = $733 Mil.
Total Current Assets was $1,667 Mil.
Total Assets was $1,917 Mil.
Property, Plant and Equipment(Net PPE) was $77 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General & Admin. Expense(SGA) was $588 Mil.
Total Current Liabilities was $938 Mil.
Long-Term Debt was $243 Mil.
Net Income was 21.635 + 35.067 + 6.888 + 18.576 = $82 Mil.
Non Operating Income was -0.931 + -0.206 + -0.884 + -0.861 = $-3 Mil.
Cash Flow from Operations was -120.235 + 42.279 + -47.187 + 155.868 = $31 Mil.
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.



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)
=(1162.424 / 5405.117) / (1106.231 / 5432.039)
=0.21505991 / 0.20364931
=1.056

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)
=(717.718 / 5432.039) / (732.986 / 5405.117)
=0.13212681 / 0.13560965
=0.9743

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 - (1666.85 + 76.614) / 1916.803) / (1 - (1502.497 + 92.864) / 1716.596)
=0.09043131 / 0.07062524
=1.2804

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
=5405.117 / 5432.039
=0.995

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))
=(38.348 / (38.348 + 92.864)) / (39.628 / (39.628 + 76.614))
=0.29225985 / 0.34090948
=0.8573

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)
=(588.228 / 5405.117) / (581.19 / 5432.039)
=0.10882799 / 0.10699297
=1.0172

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)
=((243.372 + 937.548) / 1916.803) / ((85.057 + 933.757) / 1716.596)
=0.61608835 / 0.59350832
=1.038

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
=(82.166 - -2.882 - 30.725) / 1916.803
=0.0283

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 -2.23 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 local exchange's currency.

Insight Enterprises Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.83470.8070.92351.170.97820.96761.13190.94531.00710.9939
GMI 0.89810.95111.00141.00051.02331.00150.9880.99921.01381.0052
AQI 2.38990.94220.58320.96750.79371.02170.80120.96060.86191.3356
SGI 1.12861.3361.00520.85731.16271.09921.00270.97041.03341.0107
DEPI 0.66810.82850.86160.9651.01580.97360.97610.93570.85010.9321
SGAI 1.14971.07881.05011.04220.88910.97571.01261.030.98831.003
LVGI 1.61860.95521.28920.96180.98260.96730.95640.94991.02961.0443
TATA 0.0016-0.0128-0.2306-0.0551-0.0115-0.00810.0121-0.0018-0.0169-0.0515
M-score -1.35-2.49-3.91-2.72-2.45-2.44-2.38-2.58-2.60-2.60

Insight Enterprises Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.99511.01121.00710.94111.06991.03380.99391.01091.00651.056
GMI 0.99441.01411.01381.01921.031.02251.00520.9930.96930.9743
AQI 0.84280.86020.86190.97090.87130.91521.33561.36181.35911.2804
SGI 1.01021.03321.03341.02781.02881.03171.01071.00021.00510.995
DEPI 0.89170.87830.85010.84380.90930.92080.93210.93060.87490.8573
SGAI 1.00510.98170.98830.98830.97980.98111.0031.02571.02411.0172
LVGI 0.96880.99751.02961.00521.10111.09711.04430.99670.99181.038
TATA -0.00740.0135-0.01690.0069-0.0132-0.0064-0.0515-0.02280.00130.0283
M-score -2.58-2.44-2.60-2.50-2.53-2.51-2.60-2.45-2.35-2.23
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