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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-2.63 (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.

Tyler Technologies Inc has a M-score of -2.63 suggests that the company is not a manipulator.

TYL' s 10-Year Beneish M-Score Range
Min: -116.51   Max: 48
Current: -2.63

-116.51
48

During the past 13 years, the highest Beneish M-Score of Tyler Technologies Inc was 48.00. The lowest was -116.51. And the median was -2.69.


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 Tyler Technologies 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 * 0.9868+0.528 * 0.9933+0.404 * 0.6866+0.892 * 1.1517+0.115 * 1.2098
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9965+4.679 * -0.0517-0.327 * 0.7823
=-2.63

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $86.6 Mil.
Revenue was 112.626 + 110.735 + 107.021 + 103.088 = $433.5 Mil.
Gross Profit was 52.53 + 52.767 + 49.549 + 47.042 = $201.9 Mil.
Total Current Assets was $207.6 Mil.
Total Assets was $434.2 Mil.
Property, Plant and Equipment(Net PPE) was $66.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.1 Mil.
Selling, General & Admin. Expense(SGA) was $101.0 Mil.
Total Current Liabilities was $161.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 11.883 + 10.512 + 11.049 + 9.047 = $42.5 Mil.
Non Operating Income was -0.259 + -0.39 + -0.285 + 0.296 = $-0.6 Mil.
Cash Flow from Operations was 16.56 + 7.389 + 42.115 + -0.498 = $65.6 Mil.
Accounts Receivable was $76.2 Mil.
Revenue was 95.799 + 95.368 + 93.845 + 91.368 = $376.4 Mil.
Gross Profit was 43.845 + 44.64 + 44.944 + 40.699 = $174.1 Mil.
Total Current Assets was $97.5 Mil.
Total Assets was $315.4 Mil.
Property, Plant and Equipment(Net PPE) was $48.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.0 Mil.
Selling, General & Admin. Expense(SGA) was $88.0 Mil.
Total Current Liabilities was $149.8 Mil.
Long-Term Debt was $0.0 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)
=(86.624 / 433.47) / (76.22 / 376.38)
=0.19983851 / 0.2025081
=0.9868

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)
=(52.767 / 376.38) / (52.53 / 433.47)
=0.46263882 / 0.46574849
=0.9933

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 - (207.619 + 66.222) / 434.241) / (1 - (97.549 + 48.17) / 315.374)
=0.36938014 / 0.53794859
=0.6866

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
=433.47 / 376.38
=1.1517

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))
=(13.007 / (13.007 + 48.17)) / (14.12 / (14.12 + 66.222))
=0.21261258 / 0.17574867
=1.2098

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)
=(101.01 / 433.47) / (88.017 / 376.38)
=0.23302651 / 0.23385143
=0.9965

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)
=((0 + 161.382) / 434.241) / ((0 + 149.813) / 315.374)
=0.37164155 / 0.47503282
=0.7823

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
=(42.491 - -0.638 - 65.566) / 434.241
=-0.0517

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.

Tyler Technologies Inc has a M-score of -2.63 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.

Tyler Technologies Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.87741.13561.0230.97680.99790.96371.01341.02580.94251.0179
GMI 1.01721.02730.94180.99720.92750.93360.99770.96920.99370.9954
AQI 0.95170.84820.96780.90671.22050.90991.07021.00771.01340.7227
SGI 1.18440.98951.14581.12541.20611.0950.99431.07191.17431.1468
DEPI 0.91050.98081.11611.08371.65371.53540.8881.14230.94571.248
SGAI 0.99961.02820.9760.88881.00861.01760.99661.01570.97610.9885
LVGI 1.04621.17581.05981.0341.2860.92860.98861.52270.77120.7797
TATA -0.0648-0.0715-0.0614-0.0762-0.1355-0.0583-0.0324-0.0896-0.0678-0.0578
M-score -2.77-2.81-2.66-2.77-2.90-2.69-2.61-2.98-2.62-2.61

Tyler Technologies Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.02580.81220.98690.88770.94251.0961.03671.00931.01790.9868
GMI 0.96920.97340.97310.97620.99370.99490.98881.0040.99540.9933
AQI 1.00771.07721.08381.11011.01340.97430.90270.78340.72270.6866
SGI 1.07191.09081.12491.16771.17431.18091.16421.14651.14681.1517
DEPI 1.14230.95960.96110.90790.94571.00871.13851.30431.2481.2098
SGAI 1.01571.05581.04961.01690.97610.93520.94550.97350.98850.9965
LVGI 1.52271.21751.12430.79880.77120.71310.73790.79180.77970.7823
TATA -0.0896-0.102-0.0519-0.0712-0.0765-0.0668-0.0754-0.0926-0.0591-0.0517
M-score -2.98-3.12-2.66-2.68-2.66-2.45-2.59-2.75-2.62-2.63
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