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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

TYL' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 48
Current: -2.79

-4.79
48

During the past 13 years, the highest Beneish M-Score of Tyler Technologies Inc was 48.00. The lowest was -4.79. And the median was -2.68.


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 * 1.0406+0.528 * 0.9737+0.404 * 0.7399+0.892 * 1.1872+0.115 * 0.9604
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9422+4.679 * -0.0911-0.327 * 0.918
=-2.79

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $111.8 Mil.
Revenue was 128.664 + 124.371 + 112.626 + 110.735 = $476.4 Mil.
Gross Profit was 61.792 + 58.558 + 52.53 + 52.767 = $225.6 Mil.
Total Current Assets was $293.0 Mil.
Total Assets was $522.3 Mil.
Property, Plant and Equipment(Net PPE) was $66.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.6 Mil.
Selling, General & Admin. Expense(SGA) was $106.2 Mil.
Total Current Liabilities was $221.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 17 + 14.74 + 11.883 + 10.512 = $54.1 Mil.
Non Operating Income was 0.047 + -0.216 + -0.259 + -0.39 = $-0.8 Mil.
Cash Flow from Operations was 66.303 + 12.268 + 16.56 + 7.389 = $102.5 Mil.
Accounts Receivable was $90.5 Mil.
Revenue was 107.021 + 103.088 + 95.799 + 95.368 = $401.3 Mil.
Gross Profit was 49.549 + 47.042 + 43.845 + 44.64 = $185.1 Mil.
Total Current Assets was $164.8 Mil.
Total Assets was $393.4 Mil.
Property, Plant and Equipment(Net PPE) was $63.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $95.0 Mil.
Total Current Liabilities was $181.6 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)
=(111.803 / 476.396) / (90.503 / 401.276)
=0.23468501 / 0.22553803
=1.0406

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)
=(58.558 / 401.276) / (61.792 / 476.396)
=0.46121871 / 0.47365427
=0.9737

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 - (293 + 66.694) / 522.263) / (1 - (164.765 + 63.145) / 393.415)
=0.31127803 / 0.42068808
=0.7399

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
=476.396 / 401.276
=1.1872

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))
=(13.188 / (13.188 + 63.145)) / (14.629 / (14.629 + 66.694))
=0.17276931 / 0.17988761
=0.9604

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)
=(106.221 / 476.396) / (94.961 / 401.276)
=0.22296787 / 0.23664759
=0.9422

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 + 221.361) / 522.263) / ((0 + 181.646) / 393.415)
=0.42384967 / 0.461716
=0.918

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
=(54.135 - -0.818 - 102.52) / 522.263
=-0.0911

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 -2.79 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 1.00681.09541.0230.97680.99790.96371.01341.02580.94920.9262
GMI 1.0311.05060.94180.99720.92750.93360.99770.96920.99370.9954
AQI 0.91640.86130.96780.90671.22050.90991.07021.00771.00820.7264
SGI 1.18440.98951.14581.12541.20611.0950.99431.07191.17431.1468
DEPI 0.93470.98081.11611.08371.65371.53540.8881.14230.94571.248
SGAI 0.99961.02820.9760.88881.00861.01760.99661.01570.97610.9885
LVGI 1.10581.17581.05981.0341.2860.92860.98861.52270.77220.7786
TATA -0.0625-0.0715-0.0614-0.0762-0.1355-0.0583-0.0324-0.1059-0.0679-0.0578
M-score -2.66-2.83-2.66-2.77-2.90-2.69-2.61-3.06-2.62-2.70

Tyler Technologies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.98690.88770.94921.0961.03671.00930.92620.93791.01521.0406
GMI 0.97310.97620.99370.99490.98881.0040.99540.99330.99090.9737
AQI 1.08381.11011.00820.97430.90270.78340.72640.68660.71980.7399
SGI 1.12491.16771.17431.18091.16421.14651.14681.15171.17171.1872
DEPI 0.96110.90790.94571.00871.13851.30431.2481.20981.08140.9604
SGAI 1.04961.01690.97610.93520.94550.97350.98850.99650.96720.9422
LVGI 1.12430.79880.77220.71310.73790.79180.77860.78230.89220.918
TATA -0.0577-0.0774-0.0679-0.064-0.0772-0.0943-0.0606-0.0517-0.0596-0.0911
M-score -2.68-2.71-2.62-2.44-2.60-2.76-2.71-2.68-2.66-2.79
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