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Matrix Asset Management, Inc. (TSX:MTA)
Beneish M-Score
0.00 (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.

Matrix Asset Management, Inc. has a M-score of -9.27 suggests that the company is not a manipulator.

During the past 13 years, the highest Beneish M-Score of Matrix Asset Management, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.

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 Matrix Asset Management, 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 * 0.2292 + 0.528 * 1 + 0.404 * 1.0063 + 0.892 * 0.9693 + 0.115 * 0.7762 - 0.172 * SGAI + 4.679 * TATA - 0.327 * LVGI - 0.172 * 1.1639 + 4.679 * -1.2025 - 0.327 * 2.1607 = -9.27

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

 This Year (Sep13) TTM: Last Year (Sep12) TTM: Accounts Receivable was C\$2.31 Mil. Revenue was 2.749 + 4.881 + 4.936 + 9.975 = C\$22.54 Mil. Gross Profit was 2.749 + 4.881 + 4.936 + 9.975 = C\$22.54 Mil. Total Current Assets was C\$0.00 Mil. Total Assets was C\$7.52 Mil. Property, Plant and Equipment(Net PPE) was C\$0.20 Mil. Depreciation, Depletion and Amortization(DDA) was C\$5.86 Mil. Selling, General & Admin. Expense(SGA) was C\$26.38 Mil. Total Current Liabilities was C\$0.00 Mil. Long-Term Debt was C\$4.45 Mil. Net Income was -5.097 + -1.775 + -1.28 + -3.183 = C\$-11.34 Mil. Non Operating Income was 0 + 0 + 0 + 0 = C\$0.00 Mil. Cash Flow from Operations was -2.219 + -0.979 + -0.77 + 1.671 = C\$-2.30 Mil. Accounts Receivable was C\$10.42 Mil. Revenue was 3.926 + 6.168 + 6.72 + 6.442 = C\$23.26 Mil. Gross Profit was 3.926 + 6.168 + 6.72 + 6.442 = C\$23.26 Mil. Total Current Assets was C\$0.00 Mil. Total Assets was C\$28.39 Mil. Property, Plant and Equipment(Net PPE) was C\$0.93 Mil. Depreciation, Depletion and Amortization(DDA) was C\$2.81 Mil. Selling, General & Admin. Expense(SGA) was C\$23.38 Mil. Total Current Liabilities was C\$0.00 Mil. Long-Term Debt was C\$7.78 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of daysÂ’ 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) = (2.314 / 22.541) / (10.416 / 23.256) = 0.10265738 / 0.44788442 = 0.2292

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) = (23.256 / 23.256) / (22.541 / 22.541) = 1 / 1 = 1

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 - (0 + 0.201) / 7.516) / (1 - (0 + 0.933) / 28.39) = 0.97325705 / 0.96713632 = 1.0063

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 = 22.541 / 23.256 = 0.9693

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)) = (2.805 / (2.805 + 0.933)) / (5.856 / (5.856 + 0.201)) = 0.75040128 / 0.96681526 = 0.7762

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) = (26.379 / 22.541) / (23.384 / 23.256) = 1.17026751 / 1.00550396 = 1.1639

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) = ((4.452 + 0) / 7.516) / ((7.783 + 0) / 28.39) = 0.59233635 / 0.27414583 = 2.1607

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 = (-11.335 - 0 - -2.297) / 7.516 = -1.2025

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.

Matrix Asset Management, Inc. has a M-score of -9.27 suggests that the company will not be a manipulator.

Related Terms

Historical Data

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

Matrix Asset Management, Inc. Annual Data

 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 DSRI 1.2531 1.148 0.7192 GMI 1 1 1 AQI 1.0015 0.9874 1.0048 SGI 1.2226 0.8395 0.7718 DEPI 0.9663 1.0079 0.9493 SGAI 1.0635 1.2029 1.0389 LVGI 0.6527 1.4246 1.0232 TATA -0.1088 -0.2852 -0.3563 M-score -2.46 -4.00 -4.63

Matrix Asset Management, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 DSRI 1.6543 1 1.148 1.1159 1.2941 1.5329 0.6188 1.2004 1.0008 0.2292 GMI 1 1 1 1 1 1 1 1 1 1 AQI 0.9963 0.9922 0.9874 0.9877 0.9942 0.999 1.0048 1.0007 1.0021 1.0063 SGI 0.9813 0.8933 0.8395 0.8244 0.7845 0.7366 0.8971 0.8711 0.8969 0.9693 DEPI 1.0651 1.0962 1.0079 1.0098 0.9999 1.0443 0.9493 0.9507 0.9357 0.7762 SGAI 1.094 1.1082 1.1878 1.2641 1.1788 1.1466 1.0996 1.0723 1.0944 1.1639 LVGI 1.1986 1.1595 1.4246 1.4771 1.5936 1.3235 1.0232 0.9691 0.9375 2.1607 TATA 0.0512 0.0563 -0.2852 -0.4294 -0.5753 -0.5188 -0.3563 -0.3261 -0.2755 -1.2025 M-score -1.73 -2.37 -4.00 -4.74 -5.32 -4.78 -4.62 -3.94 -3.86 -9.27
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