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Insperity Inc (NYSE:NSP)
Beneish M-Score
-3.67 (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 -3.67 suggests that the company is not a manipulator.

NSP' s 10-Year Beneish M-Score Range
Min: -4.04   Max: 95.15
Current: -3.67

-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 -2.65.


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 * 0.0159+0.528 * 0.9711+0.404 * 1.1979+0.892 * 1.0609+0.115 * 0.7566
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0086+4.679 * -0.0746-0.327 * 1.0648
=-3.67

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $4 Mil.
Revenue was 699.479 + 595.865 + 560.303 + 564.621 = $2,420 Mil.
Gross Profit was 129.86 + 101.359 + 100.817 + 95.453 = $427 Mil.
Total Current Assets was $634 Mil.
Total Assets was $841 Mil.
Property, Plant and Equipment(Net PPE) was $59 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $338 Mil.
Total Current Liabilities was $532 Mil.
Long-Term Debt was $0 Mil.
Net Income was 13.787 + 8.164 + 8.385 + 1.891 = $32 Mil.
Non Operating Income was 0 + 0.027 + 0.034 + 0.012 = $0 Mil.
Cash Flow from Operations was -37.95 + 142.695 + 28.394 + -38.267 = $95 Mil.
Accounts Receivable was $222 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.



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)
=(3.74 / 2420.268) / (222.399 / 2281.275)
=0.00154528 / 0.0974889
=0.0159

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)
=(101.359 / 2281.275) / (129.86 / 2420.268)
=0.17153083 / 0.17662879
=0.9711

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 - (633.593 + 59.115) / 840.621) / (1 - (598.037 + 83.933) / 799.389)
=0.17595682 / 0.14688593
=1.1979

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
=2420.268 / 2281.275
=1.0609

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))
=(21.163 / (21.163 + 83.933)) / (21.438 / (21.438 + 59.115))
=0.20136827 / 0.26613534
=0.7566

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)
=(338.154 / 2420.268) / (316.009 / 2281.275)
=0.13971758 / 0.13852298
=1.0086

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 + 531.745) / 840.621) / ((0 + 474.892) / 799.389)
=0.63256212 / 0.59406872
=1.0648

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
=(32.227 - 0.073 - 94.872) / 840.621
=-0.0746

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 -3.67 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.21371.04970.92750.88551.02231.11430.048322.08060.03751.5419
GMI 1.01160.99061.04430.97751.14431.00350.97521.00541.01581.0178
AQI 0.73730.78671.06261.02151.0590.97171.04311.03071.07241.1967
SGI 1.20641.1881.12991.09840.95861.04031.14911.09241.04511.0451
DEPI 1.31010.97220.91751.18190.87451.03121.1680.86760.82750.9689
SGAI 0.92740.97940.97891.0530.96850.970.98550.95821.02351.0139
LVGI 0.98680.91191.10221.00770.88541.06311.03811.04420.98071.0939
TATA -0.1645-0.0751-0.0484-0.11670.0273-0.0854-0.0504-0.06740-0.1428
M-score -2.92-2.68-2.65-3.04-2.24-2.76-3.4416.67-3.31-2.56

Insperity Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 22.08060.01310.014792.31760.037586.03871.20881.07581.54190.0159
GMI 1.00541.00410.97751.00381.01581.0381.06671.05081.01780.9711
AQI 1.03071.05061.02181.13341.07241.04041.0771.00061.19671.1979
SGI 1.09241.0691.05871.05181.04511.04861.04321.03931.04511.0609
DEPI 0.86760.83410.82970.83250.82750.85280.88190.920.96890.7566
SGAI 0.95820.9831.00590.99481.02351.01290.9951.01651.01391.0086
LVGI 1.04421.05511.06441.0040.98071.011.01191.07161.09391.0648
TATA -0.0674-0.0465-0.04550.010400.00630.0005-0.0551-0.1428-0.0746
M-score 16.67-3.56-3.5981.66-3.3175.84-2.20-2.64-2.56-3.67
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