RATE has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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.
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|
|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
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)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(156.12 / 262.006)||/||(169.494 / 287.708)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|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)|
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.
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))|
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)|
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)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-59.292 - -9.975||-||64.923)||/||1087.778|
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.
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
Bankrate Inc Annual Data
Bankrate Inc Quarterly Data