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Insperity Inc (NYSE:NSP)
Beneish M-Score
-2.30 (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.

Insperity Inc has a M-score of -2.30 suggests that the company is not a manipulator.

NSP' s 10-Year Beneish M-Score Range
Min: -3.48   Max: 0.2
Current: -2.3

-3.48
0.2

During the past 13 years, the highest Beneish M-Score of Insperity Inc was 0.20. The lowest was -3.48. And the median was -2.57.


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 Insperity 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 * 1.0969+0.528 * 1.038+0.404 * 1.0404+0.892 * 1.0486+0.115 * 0.853
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0129+4.679 * 0.0063-0.327 * 1.01
=-2.30

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $231 Mil.
Revenue was 636.999 + 557.133 + 539.869 + 547.274 = $2,281 Mil.
Gross Profit was 106.176 + 89.978 + 97.409 + 97.746 = $391 Mil.
Total Current Assets was $598 Mil.
Total Assets was $799 Mil.
Property, Plant and Equipment(Net PPE) was $84 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $316 Mil.
Total Current Liabilities was $475 Mil.
Long-Term Debt was $0 Mil.
Net Income was 9.564 + 5.289 + 10.082 + 3.488 = $28 Mil.
Non Operating Income was -0.026 + 0.019 + -0.001 + -2.676 = $-3 Mil.
Cash Flow from Operations was 8.891 + 69.041 + -13.236 + -38.613 = $26 Mil.
Accounts Receivable was $201 Mil.
Revenue was 611.836 + 532.438 + 511.953 + 519.256 = $2,175 Mil.
Gross Profit was 108.118 + 93.503 + 98.42 + 87.294 = $387 Mil.
Total Current Assets was $561 Mil.
Total Assets was $761 Mil.
Property, Plant and Equipment(Net PPE) was $92 Mil.
Depreciation, Depletion and Amortization(DDA) was $19 Mil.
Selling, General & Admin. Expense(SGA) was $298 Mil.
Total Current Liabilities was $447 Mil.
Long-Term Debt was $0 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)
=(231.439 / 2281.275) / (201.2 / 2175.483)
=0.1014516 / 0.09248521
=1.0969

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)
=(89.978 / 2175.483) / (106.176 / 2281.275)
=0.17804552 / 0.17153083
=1.038

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 - (598.037 + 83.933) / 799.389) / (1 - (561.159 + 92.15) / 760.711)
=0.14688593 / 0.14118634
=1.0404

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
=2281.275 / 2175.483
=1.0486

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))
=(19.106 / (19.106 + 92.15)) / (21.158 / (21.158 + 83.933))
=0.17173006 / 0.20133028
=0.853

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)
=(316.009 / 2281.275) / (297.504 / 2175.483)
=0.13852298 / 0.13675308
=1.0129

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)
=((0 + 474.892) / 799.389) / ((0 + 447.459) / 760.711)
=0.59406872 / 0.58821155
=1.01

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
=(28.423 - -2.684 - 26.083) / 799.389
=0.0063

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.

Insperity Inc has a M-score of -2.30 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.

Insperity Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.00751.2051.0770.97520.82081.04471.10421.05111.00261.0576
GMI 1.08511.01160.99061.04430.97751.14431.00350.97521.00541.0158
AQI 1.71040.73730.78671.06261.02151.0590.97171.04311.03071.0724
SGI 1.08831.20641.1881.12991.09840.95861.04031.14911.09241.0451
DEPI 1.07381.31010.97220.91751.18190.87451.03121.1680.86760.8284
SGAI 0.9550.92740.97940.97891.0530.96850.970.98550.95821.0235
LVGI 0.93110.98680.91191.10221.00770.88541.06311.03811.04420.9807
TATA 0.0014-0.1645-0.0751-0.0484-0.11670.0273-0.0854-0.0504-0.06740
M-score -2.02-2.92-2.65-2.60-3.10-2.22-2.77-2.52-2.72-2.37

Insperity Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.05110.99991.15811.12351.00261.06591.07291.0251.05761.0969
GMI 0.97520.98531.00391.00161.00541.00410.97751.00381.01581.038
AQI 1.04311.0211.14920.99831.03071.05061.02181.13341.07241.0404
SGI 1.14911.13151.11961.10691.09241.0691.05871.05181.04511.0486
DEPI 1.1681.11291.04470.92950.86760.83410.82970.83250.82840.853
SGAI 0.98550.98760.97650.96520.95820.9831.00590.99481.02351.0129
LVGI 1.03810.98490.98041.04471.04421.05511.06441.0040.98071.01
TATA -0.0504-0.00690.0366-0.0603-0.0674-0.0465-0.04550.010400.0063
M-score -2.52-2.37-1.98-2.57-2.72-2.59-2.62-2.33-2.37-2.30
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