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Insperity Inc (NYSE:NSP)
Beneish M-Score
-2.56 (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 -2.56 suggests that the company is not a manipulator.

NSP' s 10-Year Beneish M-Score Range
Min: -3.48   Max: 16.67
Current: -2.56

-3.48
16.67

During the past 13 years, the highest Beneish M-Score of Insperity Inc was 16.67. The lowest was -3.48. And the median was -2.67.


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 * 1.5419+0.528 * 1.0178+0.404 * 1.1967+0.892 * 1.0451+0.115 * 0.9689
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0139+4.679 * -0.1428-0.327 * 1.0939
=-2.56

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $12 Mil.
Revenue was 595.865 + 560.303 + 564.621 + 636.999 = $2,358 Mil.
Gross Profit was 101.359 + 100.817 + 95.453 + 106.176 = $404 Mil.
Total Current Assets was $570 Mil.
Total Assets was $797 Mil.
Property, Plant and Equipment(Net PPE) was $84 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $331 Mil.
Total Current Liabilities was $496 Mil.
Long-Term Debt was $0 Mil.
Net Income was 8.164 + 8.385 + 1.891 + 9.564 = $28 Mil.
Non Operating Income was 0.027 + 0.034 + 0.012 + -0.026 = $0 Mil.
Cash Flow from Operations was 142.695 + 28.394 + -38.267 + 8.891 = $142 Mil.
Accounts Receivable was $7 Mil.
Revenue was 557.133 + 539.869 + 547.274 + 611.836 = $2,256 Mil.
Gross Profit was 89.978 + 97.409 + 97.746 + 108.118 = $393 Mil.
Total Current Assets was $565 Mil.
Total Assets was $767 Mil.
Property, Plant and Equipment(Net PPE) was $86 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General & Admin. Expense(SGA) was $313 Mil.
Total Current Liabilities was $437 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)
=(12.01 / 2357.788) / (7.453 / 2256.112)
=0.00509376 / 0.00330347
=1.5419

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)
=(100.817 / 2256.112) / (101.359 / 2357.788)
=0.17430473 / 0.17126434
=1.0178

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 - (569.509 + 84.345) / 796.67) / (1 - (565.317 + 86.415) / 766.56)
=0.1792662 / 0.14979649
=1.1967

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
=2357.788 / 2256.112
=1.0451

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))
=(21.064 / (21.064 + 86.415)) / (21.387 / (21.387 + 84.345))
=0.19598247 / 0.20227556
=0.9689

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)
=(331.257 / 2357.788) / (312.622 / 2256.112)
=0.14049482 / 0.1385667
=1.0139

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 + 496.451) / 796.67) / ((0 + 436.687) / 766.56)
=0.62315764 / 0.569671
=1.0939

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
=(28.004 - 0.047 - 141.713) / 796.67
=-0.1428

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 -2.56 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.252122.08060.01310.014792.31760.037586.03871.20881.07581.5419
GMI 1.00161.00541.00410.97751.00381.01581.0381.06671.05081.0178
AQI 0.99831.03071.05061.02181.13341.07241.04041.0771.00061.1967
SGI 1.10691.09241.0691.05871.05181.04511.04861.04321.03931.0451
DEPI 0.92950.86760.83410.82970.83250.82750.8520.88190.920.9689
SGAI 0.96520.95820.9831.00590.99481.02351.01290.9951.01651.0139
LVGI 1.04471.04421.05511.06441.0040.98071.011.01191.07161.0939
TATA -0.0603-0.0674-0.0465-0.04550.010400.00630.0005-0.0551-0.1428
M-score -3.3716.67-3.56-3.5981.66-3.3175.84-2.20-2.64-2.56
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