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Insight Enterprises Inc (NAS:NSIT)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

NSIT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.14   Max: 64.29
Current: -2.45

-4.14
64.29

During the past 13 years, the highest Beneish M-Score of Insight Enterprises Inc was 64.29. The lowest was -4.14. 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 * 1.0109+0.528 * 0.993+0.404 * 1.3618+0.892 * 1.0002+0.115 * 0.9306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0257+4.679 * -0.0228-0.327 * 0.9967
=-2.45

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,051 Mil.
Revenue was 1168.982 + 1387.185 + 1342.195 + 1424.031 = $5,322 Mil.
Gross Profit was 161.108 + 180.853 + 182.251 + 191.415 = $716 Mil.
Total Current Assets was $1,492 Mil.
Total Assets was $1,749 Mil.
Property, Plant and Equipment(Net PPE) was $86 Mil.
Depreciation, Depletion and Amortization(DDA) was $39 Mil.
Selling, General & Admin. Expense(SGA) was $590 Mil.
Total Current Liabilities was $889 Mil.
Long-Term Debt was $141 Mil.
Net Income was 6.888 + 18.576 + 20.825 + 25.499 = $72 Mil.
Non Operating Income was -0.884 + -0.861 + 1.204 + -0.301 = $-1 Mil.
Cash Flow from Operations was -47.187 + 155.868 + -71.682 + 75.506 = $113 Mil.
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.



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)
=(1050.866 / 5322.393) / (1039.313 / 5321.378)
=0.19744239 / 0.195309
=1.0109

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)
=(710.471 / 5321.378) / (715.627 / 5322.393)
=0.1335126 / 0.13445587
=0.993

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 - (1491.828 + 85.975) / 1749.167) / (1 - (1494.931 + 98.947) / 1717.436)
=0.09796892 / 0.07194329
=1.3618

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
=5322.393 / 5321.378
=1.0002

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))
=(40.086 / (40.086 + 98.947)) / (38.595 / (38.595 + 85.975))
=0.28832004 / 0.3098258
=0.9306

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)
=(590.229 / 5322.393) / (575.334 / 5321.378)
=0.11089542 / 0.10811748
=1.0257

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)
=((141.171 + 889.094) / 1749.167) / ((95.348 + 919.541) / 1717.436)
=0.58900322 / 0.59093265
=0.9967

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
=(71.788 - -0.842 - 112.505) / 1749.167
=-0.0228

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 -2.45 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.76910.85730.92351.170.97820.96761.13190.94531.00710.9939
GMI 0.95750.91131.00141.00051.02331.00150.9880.99921.01381.0052
AQI 2.38990.94220.58320.96750.79371.02170.80120.96060.95161.2097
SGI 1.17051.25761.00520.85731.16271.09921.00270.97041.03341.0107
DEPI 0.8120.82850.86160.9651.01580.97360.97610.93570.85010.9321
SGAI 1.10621.13031.05011.04220.88910.97571.01261.030.98831.003
LVGI 1.61860.95521.28920.96180.98260.96730.95640.94991.02981.0441
TATA 0.0016-0.0128-0.2329-0.0551-0.0115-0.00810.0121-0.0018-0.0169-0.0515
M-score -1.32-2.54-3.92-2.72-2.45-2.44-2.38-2.58-2.56-2.65

Insight Enterprises Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.94531.00490.99511.01121.00710.94111.06991.03380.99391.0109
GMI 0.99920.99240.99441.01411.01381.01921.031.02251.00520.993
AQI 0.96060.81150.84280.86020.95160.97090.87130.91521.20971.3618
SGI 0.97040.98821.01021.03321.03341.02781.02881.03171.01071.0002
DEPI 0.93570.93980.89170.87830.85010.84380.90930.92080.93210.9306
SGAI 1.031.01831.00510.98170.98830.98830.97980.98111.0031.0257
LVGI 0.94991.02810.96880.99751.02981.00521.10111.09711.04410.9967
TATA -0.0018-0.0287-0.00740.0135-0.01690.0069-0.0132-0.0064-0.0515-0.0228
M-score -2.58-2.72-2.58-2.44-2.56-2.50-2.53-2.51-2.65-2.45
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