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Insperity Inc (NYSE:NSP)
Beneish M-Score
-3.55 (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 -3.55 suggests that the company is not a manipulator.

NSP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.04   Max: 95.15
Current: -3.55

-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 * 0.5298+0.528 * 1.0478+0.404 * 1.0388+0.892 * 1.1218+0.115 * 1.301
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9217+4.679 * -0.1612-0.327 * 1.2418
=-3.55

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $4 Mil.
Revenue was 707.332 + 802.408 + 650.011 + 626.286 = $2,786 Mil.
Gross Profit was 113.259 + 150.016 + 97.045 + 106.743 = $467 Mil.
Total Current Assets was $611 Mil.
Total Assets was $846 Mil.
Property, Plant and Equipment(Net PPE) was $68 Mil.
Depreciation, Depletion and Amortization(DDA) was $17 Mil.
Selling, General & Admin. Expense(SGA) was $352 Mil.
Total Current Liabilities was $542 Mil.
Long-Term Debt was $104 Mil.
Net Income was 9.713 + 32.693 + 6.339 + 11.95 = $61 Mil.
Non Operating Income was 0 + 0 + -0.097 + 0.016 = $-0 Mil.
Cash Flow from Operations was -34.541 + 95.207 + 90.759 + 45.803 = $197 Mil.
Accounts Receivable was $7 Mil.
Revenue was 627.838 + 699.479 + 595.865 + 560.303 = $2,483 Mil.
Gross Profit was 104.219 + 129.86 + 101.359 + 100.817 = $436 Mil.
Total Current Assets was $552 Mil.
Total Assets was $753 Mil.
Property, Plant and Equipment(Net PPE) was $58 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $340 Mil.
Total Current Liabilities was $463 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)
=(3.977 / 2786.037) / (6.691 / 2483.485)
=0.00142748 / 0.0026942
=0.5298

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)
=(436.255 / 2483.485) / (467.063 / 2786.037)
=0.17566243 / 0.16764422
=1.0478

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 - (611.481 + 67.671) / 846.495) / (1 - (551.594 + 58.142) / 753.048)
=0.1976893 / 0.19030925
=1.0388

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
=2786.037 / 2483.485
=1.1218

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))
=(20.737 / (20.737 + 58.142)) / (17.137 / (17.137 + 67.671))
=0.26289633 / 0.2020682
=1.301

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)
=(351.538 / 2786.037) / (339.99 / 2483.485)
=0.12617851 / 0.13690036
=0.9217

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)
=((104.4 + 541.547) / 846.495) / ((0 + 462.763) / 753.048)
=0.76308425 / 0.61451992
=1.2418

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
=(60.695 - -0.081 - 197.228) / 846.495
=-0.1612

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 -3.55 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.04970.92750.88551.02231.11430.048322.08060.03751.54190.5799
GMI 0.99061.04430.97751.14431.00350.97521.00541.01581.01781.0184
AQI 0.78671.06261.02151.0590.97171.04311.03071.07241.22181.2607
SGI 1.1881.12991.09840.95861.04031.14911.09241.04511.04511.1043
DEPI 0.97220.91751.18190.87451.03121.1680.86490.830.96890.8752
SGAI 0.97940.97891.0530.96850.970.98550.95821.02351.01390.938
LVGI 0.91191.10221.00770.88541.06311.03811.04420.98071.09950.992
TATA -0.0751-0.0484-0.11670.0273-0.0854-0.0504-0.06740-0.1435-0.0326
M-score -2.68-2.65-3.04-2.24-2.76-3.4416.67-3.30-2.55-2.81

Insperity Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 86.03871.20881.07581.54190.01591.79040.03060.57990.57220.5298
GMI 1.0381.06671.05081.01780.97110.96340.97561.01841.04371.0478
AQI 1.04041.0771.00061.22181.19791.17191.24821.26071.16051.0388
SGI 1.04861.04321.03931.04511.06091.08041.09941.10431.11831.1218
DEPI 0.85530.88480.92240.96890.75660.77240.79780.87521.24141.301
SGAI 1.01290.9951.01651.01391.00860.98960.95790.9380.91120.9217
LVGI 1.011.01191.07161.09951.06481.0981.08150.9921.24751.2418
TATA 0.00630.0005-0.0551-0.1435-0.0746-0.0824-0.0972-0.0326-0.1588-0.1612
M-score 75.84-2.20-2.64-2.55-3.67-2.07-3.69-2.81-3.46-3.55
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