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Bankrate Inc (NYSE:RATE)
Beneish M-Score
-3.32 (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.

Bankrate Inc has a M-score of -3.32 suggests that the company is not a manipulator.

RATE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.49   Max: 2.12
Current: -3.32

-4.49
2.12

During the past 13 years, the highest Beneish M-Score of Bankrate Inc was 2.12. The lowest was -4.49. And the median was -2.36.


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 Bankrate 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 * 0.616+0.528 * 1.0115+0.404 * 1.0027+0.892 * 1.0981+0.115 * 0.947
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1814+4.679 * -0.105-0.327 * 1.1478
=-3.32

* 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 $59.1 Mil.
Revenue was 98.302 + 93.278 + -44.632 + 140.76 = $287.7 Mil.
Gross Profit was 45.661 + 46.073 + 11.743 + 66.017 = $169.5 Mil.
Total Current Assets was $214.6 Mil.
Total Assets was $1,087.8 Mil.
Property, Plant and Equipment(Net PPE) was $10.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $54.8 Mil.
Selling, General & Admin. Expense(SGA) was $98.5 Mil.
Total Current Liabilities was $71.0 Mil.
Long-Term Debt was $294.5 Mil.
Net Income was -40.956 + 0.283 + 4.772 + -23.391 = $-59.3 Mil.
Non Operating Income was -0.265 + -9.71 + 0 + 0 = $-10.0 Mil.
Cash Flow from Operations was 10.796 + 6.885 + 24.579 + 22.663 = $64.9 Mil.
Accounts Receivable was $87.3 Mil.
Revenue was 89.334 + 89.01 + -57.988 + 141.65 = $262.0 Mil.
Gross Profit was 47.566 + 47.7 + 4.732 + 56.122 = $156.1 Mil.
Total Current Assets was $250.1 Mil.
Total Assets was $1,272.8 Mil.
Property, Plant and Equipment(Net PPE) was $15.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $62.3 Mil.
Selling, General & Admin. Expense(SGA) was $75.9 Mil.
Total Current Liabilities was $74.7 Mil.
Long-Term Debt was $297.9 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)
=(59.054 / 287.708) / (87.306 / 262.006)
=0.20525672 / 0.33322138
=0.616

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)
=(156.12 / 262.006) / (169.494 / 287.708)
=0.59586422 / 0.58911813
=1.0115

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 - (214.619 + 10.294) / 1087.778) / (1 - (250.08 + 15.832) / 1272.8)
=0.7932363 / 0.79108108
=1.0027

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
=287.708 / 262.006
=1.0981

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))
=(62.294 / (62.294 + 15.832)) / (54.839 / (54.839 + 10.294))
=0.79735299 / 0.84195416
=0.947

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)
=(98.483 / 287.708) / (75.917 / 262.006)
=0.34230192 / 0.28975291
=1.1814

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)
=((294.487 + 71.009) / 1087.778) / ((297.9 + 74.704) / 1272.8)
=0.33600238 / 0.29274356
=1.1478

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
=(-59.292 - -9.975 - 64.923) / 1087.778
=-0.105

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.

Bankrate Inc has a M-score of -3.32 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.

Bankrate Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.10081.00470.67860.75321.90150.73680.80821.810.66051.0989
GMI 1.0780.94131.20821.06540.92430.92741.64810.76621.07380.9091
AQI 0.39061.26772.18211.11981.02471.03560.99250.8710.82681.1436
SGI 1.62391.20021.74550.7881.67781.9231.07490.64981.18231.0577
DEPI 0.78140.9710.76880.89941.02771.02440.99091.00160.92161.0368
SGAI 2.16240.91170.8081.35160.65081.23950.38981.37731.30010.9976
LVGI 0.23451.33751.71555.58970.80180.59870.96131.38011.09550.9901
TATA -0.0238-0.0361-0.0851-0.1169-0.0468-0.0397-0.037-0.0738-0.0297-0.0928
M-score -2.12-2.49-2.15-4.93-1.17-2.02-2.31-2.76-2.89-2.75

Bankrate Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.79411.6060.66051.08911.5071.48340.74940.616
GMI 0.89581.021.07290.81680.59940.77350.86271.0115
AQI 0.86070.91490.82681.06811.03961.14360.92871.0027
SGI 0.73760.82521.18230.9350.75090.78350.91981.0981
DEPI 1.04611.02460.92160.9821.00761.03680.95720.947
SGAI 0.70210.37431.3643.19916.78861.16430.99261.1814
LVGI 1.31031.28941.09551.03681.02960.99011.05551.1478
TATA -0.0457-0.0307-0.0132-0.0338-0.0511-0.0819-0.0742-0.105
M-score -2.35-2.23-2.83-3.08-3.67-2.69-3.25-3.32
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