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Insperity Inc (NYSE:NSP)
Beneish M-Score
-2.07 (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 -2.07 signals that the company is a manipulator.

NSP' s 10-Year Beneish M-Score Range
Min: -4.04   Max: 95.15
Current: -2.07

-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 -2.64.


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 * 1.7904+0.528 * 0.9634+0.404 * 1.1719+0.892 * 1.0804+0.115 * 0.7724
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9896+4.679 * -0.0823-0.327 * 1.098
=-2.07

* 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 $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.
Net Income was 7.314 + 13.787 + 8.164 + 8.385 = $38 Mil.
Non Operating Income was -0.032 + 0 + 0.027 + 0.034 = $0 Mil.
Cash Flow from Operations was -33.529 + -37.95 + 142.695 + 28.394 = $100 Mil.
Accounts Receivable was $3 Mil.
Revenue was 564.621 + 636.999 + 557.133 + 539.869 = $2,299 Mil.
Gross Profit was 95.453 + 106.176 + 89.978 + 97.409 = $389 Mil.
Total Current Assets was $534 Mil.
Total Assets was $737 Mil.
Property, Plant and Equipment(Net PPE) was $83 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $318 Mil.
Total Current Liabilities was $413 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)
=(6.691 / 2483.485) / (3.459 / 2298.622)
=0.0026942 / 0.00150481
=1.7904

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)
=(129.86 / 2298.622) / (104.219 / 2483.485)
=0.16923879 / 0.17566243
=0.9634

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 - (551.594 + 58.142) / 753.048) / (1 - (534.275 + 83.252) / 737.256)
=0.19030925 / 0.16239814
=1.1719

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
=2483.485 / 2298.622
=1.0804

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))
=(21.212 / (21.212 + 83.252)) / (20.737 / (20.737 + 58.142))
=0.2030556 / 0.26289633
=0.7724

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)
=(339.99 / 2483.485) / (317.999 / 2298.622)
=0.13690036 / 0.13834332
=0.9896

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 + 462.763) / 753.048) / ((0 + 412.63) / 737.256)
=0.61451992 / 0.55968347
=1.098

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
=(37.65 - 0.029 - 99.61) / 753.048
=-0.0823

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 -2.07 signals that the company is likely to 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.01310.014792.31760.037586.03871.20881.07581.54190.01591.7904
GMI 1.00410.97751.00381.01581.0381.06671.05081.01780.97110.9634
AQI 1.05061.02181.13341.07241.04041.0771.00061.19671.19791.1719
SGI 1.0691.05871.05181.04511.04861.04321.03931.04511.06091.0804
DEPI 0.83410.82970.83250.82750.85280.88230.920.96890.75660.7724
SGAI 0.9831.00590.99481.02351.01290.9951.01651.01391.00860.9896
LVGI 1.05511.06441.0040.98071.011.01191.07161.09391.06481.098
TATA -0.0465-0.04550.010400.00630.0005-0.0551-0.1428-0.0746-0.0823
M-score -3.56-3.5981.66-3.3175.84-2.20-2.64-2.56-3.67-2.07
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