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Insight Enterprises Inc (NAS:NSIT)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

NSIT' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 64.29
Current: -2.53

-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 -2.36.


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 * 1.0699+0.528 * 1.03+0.404 * 0.8713+0.892 * 1.0288+0.115 * 0.9093
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9798+4.679 * -0.0132-0.327 * 1.1011
=-2.53

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,459 Mil.
Revenue was 1424.031 + 1219.679 + 1446.134 + 1237.668 = $5,328 Mil.
Gross Profit was 191.415 + 161.813 + 182.239 + 171.82 = $707 Mil.
Total Current Assets was $1,935 Mil.
Total Assets was $2,153 Mil.
Property, Plant and Equipment(Net PPE) was $96 Mil.
Depreciation, Depletion and Amortization(DDA) was $39 Mil.
Selling, General & Admin. Expense(SGA) was $576 Mil.
Total Current Liabilities was $1,411 Mil.
Long-Term Debt was $51 Mil.
Net Income was 25.499 + 10.951 + 19.483 + 17.402 = $73 Mil.
Non Operating Income was -0.301 + -0.944 + 0.582 + -0.607 = $-1 Mil.
Cash Flow from Operations was 75.506 + 20.818 + 62.523 + -55.919 = $103 Mil.
Accounts Receivable was $1,326 Mil.
Revenue was 1417.897 + 1214.53 + 1395.158 + 1151.02 = $5,179 Mil.
Gross Profit was 194.599 + 163.745 + 181.155 + 168.668 = $708 Mil.
Total Current Assets was $1,731 Mil.
Total Assets was $1,977 Mil.
Property, Plant and Equipment(Net PPE) was $117 Mil.
Depreciation, Depletion and Amortization(DDA) was $41 Mil.
Selling, General & Admin. Expense(SGA) was $571 Mil.
Total Current Liabilities was $1,192 Mil.
Long-Term Debt was $27 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)
=(1459.277 / 5327.512) / (1325.866 / 5178.605)
=0.27391341 / 0.25602764
=1.0699

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)
=(161.813 / 5178.605) / (191.415 / 5327.512)
=0.1367486 / 0.13276122
=1.03

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 - (1934.825 + 96.361) / 2152.595) / (1 - (1731.243 + 117.386) / 1976.575)
=0.05640123 / 0.06473116
=0.8713

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
=5327.512 / 5178.605
=1.0288

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))
=(41.455 / (41.455 + 117.386)) / (38.79 / (38.79 + 96.361))
=0.26098425 / 0.2870123
=0.9093

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)
=(575.528 / 5327.512) / (571.003 / 5178.605)
=0.10802941 / 0.11026193
=0.9798

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)
=((51.291 + 1410.515) / 2152.595) / ((27.191 + 1191.879) / 1976.575)
=0.67909012 / 0.61675879
=1.1011

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
=(73.335 - -1.27 - 102.928) / 2152.595
=-0.0132

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 -2.53 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00381.02011.0830.94531.00490.99511.01121.00710.94111.0699
GMI 0.99970.97770.98640.99920.99240.99441.01411.01381.01921.03
AQI 0.90490.89590.87480.96060.81150.84280.86020.86190.97090.8713
SGI 0.98630.95430.95870.97040.98821.01021.03321.03341.02781.0288
DEPI 0.95090.94820.93450.93570.93980.89170.87830.85010.84380.9093
SGAI 1.01711.05571.05551.031.01831.00510.98170.98830.98830.9798
LVGI 0.91640.96970.98650.94991.02810.96880.99751.02961.00521.1011
TATA -0.0103-0.0339-0.0191-0.0018-0.0287-0.00740.0135-0.01690.0069-0.0132
M-score -2.56-2.72-2.60-2.58-2.72-2.58-2.44-2.60-2.50-2.53
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