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Insperity Inc (NYSE:NSP)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

NSP' s 10-Year Beneish M-Score Range
Min: -4.04   Max: 95.15
Current: -2.64

-4.04
95.15

During the past 13 years, the highest Beneish M-Score of Insperity Inc was 95.15. The lowest was -4.04. And the median was -2.69.


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 * 1.0758+0.528 * 1.0508+0.404 * 1.0006+0.892 * 1.0393+0.115 * 0.9203
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0165+4.679 * -0.0551-0.327 * 1.0716
=-2.64

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $245 Mil.
Revenue was 560.303 + 564.621 + 636.999 + 557.133 = $2,319 Mil.
Gross Profit was 100.817 + 95.453 + 106.176 + 89.978 = $392 Mil.
Total Current Assets was $574 Mil.
Total Assets was $779 Mil.
Property, Plant and Equipment(Net PPE) was $83 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $324 Mil.
Total Current Liabilities was $455 Mil.
Long-Term Debt was $0 Mil.
Net Income was 8.385 + 1.891 + 9.564 + 5.289 = $25 Mil.
Non Operating Income was 0.034 + 0.012 + -0.026 + 0.019 = $0 Mil.
Cash Flow from Operations was 28.394 + -38.267 + 8.891 + 69.041 = $68 Mil.
Accounts Receivable was $219 Mil.
Revenue was 539.869 + 547.274 + 611.836 + 532.438 = $2,231 Mil.
Gross Profit was 97.409 + 97.746 + 108.118 + 93.503 = $397 Mil.
Total Current Assets was $509 Mil.
Total Assets was $710 Mil.
Property, Plant and Equipment(Net PPE) was $89 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $307 Mil.
Total Current Liabilities was $387 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)
=(244.814 / 2319.056) / (218.962 / 2231.417)
=0.10556623 / 0.09812689
=1.0758

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)
=(95.453 / 2231.417) / (100.817 / 2319.056)
=0.17781347 / 0.16921713
=1.0508

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 - (573.651 + 82.765) / 779.358) / (1 - (509.418 + 89.044) / 710.469)
=0.15774779 / 0.1576522
=1.0006

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
=2319.056 / 2231.417
=1.0393

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))
=(20.539 / (20.539 + 89.044)) / (21.168 / (21.168 + 82.765))
=0.18742871 / 0.20366967
=0.9203

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)
=(324.059 / 2319.056) / (306.737 / 2231.417)
=0.13973746 / 0.13746288
=1.0165

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 + 454.535) / 779.358) / ((0 + 386.681) / 710.469)
=0.58321721 / 0.54426161
=1.0716

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
=(25.129 - 0.039 - 68.059) / 779.358
=-0.0551

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 -2.64 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 1.00121.21371.04970.92750.85711.05621.11430.07610.510628.9934
GMI 1.08881.01160.99061.04430.97751.14431.00350.97521.00541.0158
AQI 1.7140.73580.78671.06261.02151.0590.97171.04311.03071.0724
SGI 1.08731.20641.1881.12991.09840.95861.04031.14911.09241.0451
DEPI 1.07381.31010.97220.91751.18190.87451.03121.1680.86760.8284
SGAI 0.95050.92740.97940.97891.0530.96850.970.98550.95821.0235
LVGI 0.92960.98840.91191.10221.00770.88541.06311.03811.04420.9807
TATA 0.0014-0.1645-0.0751-0.0484-0.11680.0273-0.0855-0.0504-0.06740
M-score -2.02-2.92-2.68-2.65-3.06-2.21-2.76-3.42-3.1723.33

Insperity Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.16650.25210.51060.01310.014792.317628.993486.03871.20881.0758
GMI 1.00391.00161.00541.00410.97751.00381.01581.0381.06671.0508
AQI 1.14920.99831.03071.05061.02181.13341.07241.04041.0771.0006
SGI 1.11961.10691.09241.0691.05871.05181.04511.04861.04321.0393
DEPI 1.00660.92850.86760.83410.82970.83410.82840.8530.88290.9203
SGAI 0.97650.96520.95820.9831.00590.99481.02351.01290.9951.0165
LVGI 0.98041.04471.04421.05511.06441.0040.98071.011.01191.0716
TATA 0.0366-0.0603-0.0674-0.0465-0.04550.010400.00630.0005-0.0551
M-score -1.98-3.37-3.17-3.56-3.5981.6623.3375.84-2.20-2.64
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