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Insight Enterprises, Inc. (NAS:NSIT)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

NSIT' s 10-Year Beneish M-Score Range
Min: -3.91   Max: 64.28
Current: -2.58

-3.91
64.28

During the past 13 years, the highest Beneish M-Score of Insight Enterprises, Inc. was 64.28. The lowest was -3.91. And the median was -2.45.


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 * 0.9453+0.528 * 0.9992+0.404 * 0.9606+0.892 * 0.9704+0.115 * 0.9357
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.03+4.679 * -0.0018-0.327 * 0.9499
=-2.58

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,258 Mil.
Revenue was 1395.158 + 1151.02 + 1416.547 + 1181.622 = $5,144 Mil.
Gross Profit was 181.155 + 168.668 + 190.927 + 158.137 = $699 Mil.
Total Current Assets was $1,595 Mil.
Total Assets was $1,868 Mil.
Property, Plant and Equipment(Net PPE) was $133 Mil.
Depreciation, Depletion and Amortization(DDA) was $42 Mil.
Selling, General & Admin. Expense(SGA) was $565 Mil.
Total Current Liabilities was $1,052 Mil.
Long-Term Debt was $67 Mil.
Net Income was 20.407 + 15.025 + 26.513 + 9.076 = $71 Mil.
Non Operating Income was -0.777 + -0.838 + 0.544 + -0.535 = $-2 Mil.
Cash Flow from Operations was 9.49 + -21.174 + 71.467 + 16.283 = $76 Mil.
Accounts Receivable was $1,371 Mil.
Revenue was 1346.675 + 1181.409 + 1529.175 + 1244.182 = $5,301 Mil.
Gross Profit was 180.393 + 167.625 + 201.286 + 170.372 = $720 Mil.
Total Current Assets was $1,702 Mil.
Total Assets was $2,002 Mil.
Property, Plant and Equipment(Net PPE) was $144 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $565 Mil.
Total Current Liabilities was $1,182 Mil.
Long-Term Debt was $80 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)
=(1257.91 / 5144.347) / (1371.356 / 5301.441)
=0.24452277 / 0.25867608
=0.9453

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)
=(168.668 / 5301.441) / (181.155 / 5144.347)
=0.13575102 / 0.13585534
=0.9992

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 - (1594.664 + 132.82) / 1867.718) / (1 - (1701.55 + 143.513) / 2001.503)
=0.07508307 / 0.07816126
=0.9606

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
=5144.347 / 5301.441
=0.9704

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))
=(41.177 / (41.177 + 143.513)) / (41.544 / (41.544 + 132.82))
=0.22295197 / 0.23826019
=0.9357

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)
=(564.91 / 5144.347) / (565.206 / 5301.441)
=0.1098118 / 0.10661365
=1.03

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)
=((66.949 + 1051.805) / 1867.718) / ((80 + 1182.121) / 2001.503)
=0.59899514 / 0.63058661
=0.9499

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
=(71.021 - -1.606 - 76.066) / 1867.718
=-0.0018

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 -2.58 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 1.19520.9541.83470.8070.92351.170.97820.96761.13190.9453
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 -1.88-2.24-1.35-2.49-3.91-2.72-2.45-2.44-2.38-2.58

Insight Enterprises, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.9570.96761.01791.04371.04081.13191.00381.02011.0830.9453
GMI 1.01371.00150.9841.00430.98750.9880.99970.97770.98640.9992
AQI 0.85481.02171.00180.96940.9790.80120.90490.89590.87480.9606
SGI 1.13261.09921.06331.03361.00931.00270.98630.95430.95870.9704
DEPI 1.00980.97360.98010.97560.99170.97610.95090.94820.93450.9357
SGAI 0.95570.97570.99460.98370.99941.01261.01711.05571.05551.03
LVGI 0.96690.96730.95950.97730.90380.95640.91640.96970.98650.9499
TATA 0.0137-0.00810.0519-0.0138-0.01970.0121-0.0103-0.0339-0.0191-0.0018
M-score -2.37-2.44-2.16-2.48-2.51-2.38-2.56-2.72-2.60-2.58
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