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Bankrate Inc (NYSE:RATE)
Beneish M-Score
-3.11 (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 -3.11 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: -3.11

-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 -2.35.


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 * 0.6482+0.528 * 0.9391+0.404 * 0.9287+0.892 * 1.0635+0.115 * 0.9572
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9033+4.679 * -0.0641-0.327 * 1.0555
=-3.11

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $55.0 Mil.
Revenue was 93.278 + -44.632 + 140.76 + 132.865 = $322.3 Mil.
Gross Profit was 46.073 + 11.743 + 66.017 + 58.194 = $182.0 Mil.
Total Current Assets was $285.4 Mil.
Total Assets was $1,083.3 Mil.
Property, Plant and Equipment(Net PPE) was $10.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $59.7 Mil.
Selling, General & Admin. Expense(SGA) was $79.0 Mil.
Total Current Liabilities was $41.2 Mil.
Long-Term Debt was $293.9 Mil.
Net Income was 0.283 + 4.772 + -23.391 + 0.32 = $-18.0 Mil.
Non Operating Income was -9.71 + 0 + 0 + -12.834 = $-22.5 Mil.
Cash Flow from Operations was 6.885 + 24.579 + 22.661 + 19.788 = $73.9 Mil.
Accounts Receivable was $79.8 Mil.
Revenue was 89.01 + -57.988 + 141.65 + 130.367 = $303.0 Mil.
Gross Profit was 47.7 + 4.732 + 56.122 + 52.193 = $160.7 Mil.
Total Current Assets was $260.0 Mil.
Total Assets was $1,260.5 Mil.
Property, Plant and Equipment(Net PPE) was $14.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $60.9 Mil.
Selling, General & Admin. Expense(SGA) was $82.3 Mil.
Total Current Liabilities was $71.6 Mil.
Long-Term Debt was $297.7 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)
=(55.013 / 322.271) / (79.807 / 303.039)
=0.17070416 / 0.26335554
=0.6482

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)
=(11.743 / 303.039) / (46.073 / 322.271)
=0.53044988 / 0.56482588
=0.9391

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 - (285.388 + 10.742) / 1083.279) / (1 - (260.039 + 14.176) / 1260.479)
=0.72663552 / 0.78245175
=0.9287

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
=322.271 / 303.039
=1.0635

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))
=(60.931 / (60.931 + 14.176)) / (59.713 / (59.713 + 10.742))
=0.81125594 / 0.84753389
=0.9572

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)
=(79.021 / 322.271) / (82.264 / 303.039)
=0.24520047 / 0.27146341
=0.9033

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)
=((293.881 + 41.187) / 1083.279) / ((297.748 + 71.646) / 1260.479)
=0.30930905 / 0.29305843
=1.0555

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
=(-18.016 - -22.544 - 73.913) / 1083.279
=-0.0641

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 -3.11 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 1.10081.00470.67860.75321.90150.73680.80611.17540.65551.7094
GMI 1.0780.94131.20821.06540.92430.9270.9731.0151.63780.7625
AQI 0.39061.26772.18211.11981.02471.03560.99250.8710.82681.1436
SGI 1.62391.20021.74550.7881.67781.9231.07771.00061.19130.68
DEPI 0.78140.9710.76880.89941.02771.02440.98460.9980.93141.0362
SGAI 1.04810.91170.8081.35160.65071.24381.23111.02180.42481.2986
LVGI 0.23451.33751.71555.58970.80180.59870.96131.38011.09550.9901
TATA -0.0238-0.0361-0.0851-0.1169-0.0466-0.0397-0.0436-0.0755-0.0297-0.0928
M-score -1.93-2.49-2.15-4.93-1.17-2.02-2.84-2.84-2.44-2.66

Bankrate Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.811.79411.6060.66051.08911.29231.28040.6482
GMI 0.76690.89581.021.07290.81680.65440.84430.9391
AQI 0.8710.86070.91490.82681.06811.03961.14360.9287
SGI 0.64980.73760.82521.18230.9350.87560.90781.0635
DEPI 1.00161.04611.02460.92160.9821.00831.03680.9572
SGAI 1.36330.70210.37431.3643.19916.12181.0580.9033
LVGI 1.38011.31031.28941.09551.03681.02960.99011.0555
TATA -0.0669-0.0457-0.0307-0.0132-0.0338-0.0425-0.0721-0.0641
M-score -2.72-2.35-2.23-2.83-3.08-3.58-2.67-3.11
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