Switch to:
Bankrate Inc (NYSE:RATE)
Beneish M-Score
-2.35 (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 -2.35 suggests that the company is not a manipulator.

RATE' s 10-Year Beneish M-Score Range
Min: -4.48   Max: 2.07
Current: -2.35

-4.48
2.07

During the past 13 years, the highest Beneish M-Score of Bankrate Inc was 2.07. The lowest was -4.48. 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 * 1.3873+0.528 * 1.0809+0.404 * 1.0396+0.892 * 0.8157+0.115 * 0.9353
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.775+4.679 * -0.0311-0.327 * 1.0296
=-2.35

* 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 $87.3 Mil.
Revenue was 132.865 + 141.541 + 0 + 141.649 = $416.1 Mil.
Gross Profit was 58.194 + 62.792 + 0 + 87.187 = $208.2 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 $105.3 Mil.
Selling, General & Admin. Expense(SGA) was $94.0 Mil.
Total Current Liabilities was $74.7 Mil.
Long-Term Debt was $297.9 Mil.
Net Income was 0.32 + 4.953 + 0 + 8.263 = $13.5 Mil.
Non Operating Income was -12.834 + -10.552 + 0 + -10.464 = $-33.9 Mil.
Cash Flow from Operations was 19.788 + 24.723 + 42.507 + 0 = $87.0 Mil.
Accounts Receivable was $77.2 Mil.
Revenue was 130.367 + 136.275 + 122.26 + 121.178 = $510.1 Mil.
Gross Profit was 52.193 + 57.767 + 85.245 + 80.654 = $275.9 Mil.
Total Current Assets was $302.0 Mil.
Total Assets was $1,320.0 Mil.
Property, Plant and Equipment(Net PPE) was $13.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.2 Mil.
Selling, General & Admin. Expense(SGA) was $148.7 Mil.
Total Current Liabilities was $78.0 Mil.
Long-Term Debt was $297.3 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)
=(87.306 / 416.055) / (77.154 / 510.08)
=0.20984245 / 0.15125863
=1.3873

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)
=(62.792 / 510.08) / (58.194 / 416.055)
=0.54081517 / 0.50034971
=1.0809

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 - (250.08 + 15.832) / 1272.8) / (1 - (301.956 + 13.609) / 1320.008)
=0.79108108 / 0.76093705
=1.0396

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
=416.055 / 510.08
=0.8157

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))
=(59.218 / (59.218 + 13.609)) / (105.348 / (105.348 + 15.832))
=0.81313249 / 0.86935138
=0.9353

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)
=(93.993 / 416.055) / (148.694 / 510.08)
=0.22591484 / 0.29151114
=0.775

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)
=((297.9 + 74.704) / 1272.8) / ((297.305 + 77.997) / 1320.008)
=0.29274356 / 0.28431797
=1.0296

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
=(13.536 - -33.85 - 87.018) / 1272.8
=-0.0311

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 -2.35 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.62631.10081.00470.67860.75321.90150.73680.80611.17730.96
GMI 1.00981.0780.94131.20821.06540.92430.9270.9731.0151.6378
AQI 4.03640.39061.26772.18211.11981.02471.03560.99250.87531.0463
SGI 1.25111.62391.20021.74550.7881.67781.9231.07771.00061.1913
DEPI 0.80510.78140.9710.76880.89941.02771.02440.98461.02131.0097
SGAI 0.41962.16240.91170.8081.35160.65081.24361.23111.02180.4248
LVGI 2.04720.23451.33751.71555.58970.80180.59870.96131.3891.0188
TATA -0.0815-0.0238-0.0361-0.0851-0.1169-0.0468-0.0397-0.0436-0.0757-0.0296
M-score -1.09-2.12-2.49-2.15-4.93-1.17-2.02-2.84-2.84-2.04

Bankrate Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.99390.98041.26321.17731.20161.10171.19491.3873
GMI 0.99741.03261.04261.01481.12681.22991.22981.0809
AQI 0.99150.98320.90350.87530.86070.91491.06811.0396
SGI 0.97880.89490.89691.00061.10141.2030.85220.8157
DEPI 0.99270.99921.00351.02131.03951.01870.91640.9353
SGAI 1.17171.13971.06791.02220.82830.71640.70020.775
LVGI 1.01951.02021.35641.3891.31031.28941.03681.0296
TATA -0.0508-0.0638-0.0587-0.082-0.0596-0.0324-0.0224-0.0311
M-score -2.78-2.91-2.75-2.87-2.54-2.31-2.36-2.35
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK