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Bankrate Inc (NYSE:RATE)
Beneish M-Score
-2.65 (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 -2.65 suggests that the company is not a manipulator.

RATE' s Beneish M-Score Range Over the Past 10 Years
Min: -4.02   Max: 1.95
Current: -2.65

-4.02
1.95

During the past 13 years, the highest Beneish M-Score of Bankrate Inc was 1.95. The lowest was -4.02. And the median was -2.31.


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 * 1.0989+0.528 * 0.9091+0.404 * 1.1436+0.892 * 1.0577+0.115 * 1.0368
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9606+4.679 * -0.0721-0.327 * 0.9901
=-2.65

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $56.1 Mil.
Revenue was -44.632 + 140.76 + 132.865 + 141.541 = $370.5 Mil.
Gross Profit was 11.743 + 66.017 + 58.194 + 62.792 = $198.7 Mil.
Total Current Assets was $321.8 Mil.
Total Assets was $1,132.8 Mil.
Property, Plant and Equipment(Net PPE) was $9.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $65.9 Mil.
Selling, General & Admin. Expense(SGA) was $82.5 Mil.
Total Current Liabilities was $60.0 Mil.
Long-Term Debt was $298.2 Mil.
Net Income was 4.772 + -23.391 + 0.32 + 4.953 = $-13.3 Mil.
Non Operating Income was 0 + 0 + -12.834 + -10.552 = $-23.4 Mil.
Cash Flow from Operations was 24.579 + 22.661 + 19.788 + 24.723 = $91.8 Mil.
Accounts Receivable was $48.3 Mil.
Revenue was -57.988 + 141.65 + 130.367 + 136.275 = $350.3 Mil.
Gross Profit was 4.732 + 56.122 + 52.193 + 57.767 = $170.8 Mil.
Total Current Assets was $473.8 Mil.
Total Assets was $1,258.4 Mil.
Property, Plant and Equipment(Net PPE) was $6.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.0 Mil.
Selling, General & Admin. Expense(SGA) was $81.2 Mil.
Total Current Liabilities was $104.3 Mil.
Long-Term Debt was $297.6 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)
=(56.148 / 370.534) / (48.307 / 350.304)
=0.15153265 / 0.13790022
=1.0989

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)
=(66.017 / 350.304) / (11.743 / 370.534)
=0.48761647 / 0.53637723
=0.9091

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 - (321.831 + 9.608) / 1132.796) / (1 - (473.766 + 6.203) / 1258.429)
=0.7074151 / 0.61859668
=1.1436

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
=370.534 / 350.304
=1.0577

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))
=(58.989 / (58.989 + 6.203)) / (65.884 / (65.884 + 9.608))
=0.90485029 / 0.87272824
=1.0368

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)
=(82.522 / 370.534) / (81.213 / 350.304)
=0.22271101 / 0.23183578
=0.9606

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)
=((298.212 + 59.966) / 1132.796) / ((297.598 + 104.277) / 1258.429)
=0.31618932 / 0.31934658
=0.9901

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
=(-13.346 - -23.386 - 91.751) / 1132.796
=-0.0721

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 -2.65 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.26671.811.79411.6060.66050.92821.10271.0989
GMI 1.89550.76690.89581.021.07290.87610.70320.9091
AQI 0.90350.8710.86070.91490.82681.06811.03961.1436
SGI 0.89430.64980.73760.82521.18231.09711.02621.0577
DEPI 1.00961.00161.04611.02460.92160.98231.00831.0368
SGAI 0.29721.36330.70210.37431.3642.87635.51940.9606
LVGI 1.35641.38011.31031.28941.09551.03681.02960.9901
TATA -0.041-0.0669-0.0457-0.0307-0.0132-0.0338-0.0424-0.0721
M-score -2.08-2.72-2.35-2.23-2.83-2.99-3.49-2.65
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