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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

TYL' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 48
Current: -2.71

-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 -2.69.


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 * 0.8929+0.528 * 0.9912+0.404 * 0.8674+0.892 * 1.1817+0.115 * 0.9854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9359+4.679 * -0.0638-0.327 * 0.8408
=-2.71

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $152.2 Mil.
Revenue was 146.295 + 134.966 + 127.44 + 128.664 = $537.4 Mil.
Gross Profit was 68.253 + 63.879 + 60.491 + 61.792 = $254.4 Mil.
Total Current Assets was $395.5 Mil.
Total Assets was $646.0 Mil.
Property, Plant and Equipment(Net PPE) was $67.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General & Admin. Expense(SGA) was $114.4 Mil.
Total Current Liabilities was $240.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 18.836 + 17.273 + 15.317 + 17 = $68.4 Mil.
Non Operating Income was 0.185 + 0.181 + -0.167 + 0.047 = $0.2 Mil.
Cash Flow from Operations was 16.908 + -2.095 + 28.306 + 66.303 = $109.4 Mil.
Accounts Receivable was $144.2 Mil.
Revenue was 124.371 + 112.626 + 110.735 + 107.021 = $454.8 Mil.
Gross Profit was 58.558 + 52.53 + 52.767 + 49.549 = $213.4 Mil.
Total Current Assets was $261.0 Mil.
Total Assets was $486.8 Mil.
Property, Plant and Equipment(Net PPE) was $67.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.4 Mil.
Selling, General & Admin. Expense(SGA) was $103.5 Mil.
Total Current Liabilities was $215.8 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)
=(152.178 / 537.365) / (144.234 / 454.753)
=0.28319299 / 0.31716998
=0.8929

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)
=(63.879 / 454.753) / (68.253 / 537.365)
=0.46927453 / 0.47344915
=0.9912

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 - (395.524 + 67.908) / 646.034) / (1 - (261.032 + 67.16) / 486.817)
=0.28265076 / 0.32584113
=0.8674

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
=537.365 / 454.753
=1.1817

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))
=(14.386 / (14.386 + 67.16)) / (14.808 / (14.808 + 67.908))
=0.17641577 / 0.1790222
=0.9854

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)
=(114.415 / 537.365) / (103.458 / 454.753)
=0.21291859 / 0.22750372
=0.9359

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 + 240.744) / 646.034) / ((0 + 215.764) / 486.817)
=0.37264912 / 0.44321377
=0.8408

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
=(68.426 - 0.246 - 109.422) / 646.034
=-0.0638

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 -2.71 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.13561.0230.97680.99790.96371.01341.02580.94920.92620.8932
GMI 1.02730.94180.99720.92750.93360.99770.96920.99370.99540.9798
AQI 0.84820.96780.90671.22050.90991.07021.00771.00820.72640.7694
SGI 0.98951.14581.12541.20611.0950.99431.07191.17431.14681.1835
DEPI 0.98081.11611.08371.65371.53540.8881.14230.94571.2480.9666
SGAI 1.02820.9760.88881.00861.01760.99661.01570.97610.98850.9307
LVGI 1.17581.05981.0341.2860.92860.98861.52270.77220.77860.9386
TATA -0.0715-0.0614-0.0762-0.1355-0.0583-0.0324-0.1059-0.0679-0.0578-0.113
M-score -2.81-2.66-2.77-2.90-2.69-2.61-3.06-2.62-2.70-3.02

Tyler Technologies Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0961.03671.00930.92620.93791.01521.04060.89321.08060.8929
GMI 0.99490.98881.0040.99540.99330.99090.97370.97980.9810.9912
AQI 0.97430.90270.78340.72640.68660.71980.73990.76940.82550.8674
SGI 1.18091.16421.14651.14681.15171.17171.18721.18351.18911.1817
DEPI 1.00871.13851.30431.2481.20981.08140.96040.96660.98250.9854
SGAI 0.93520.94550.97350.98850.99650.96720.94220.93070.92780.9359
LVGI 0.71310.73790.79180.77860.78230.89220.9180.93860.93570.8408
TATA -0.064-0.0772-0.0943-0.0606-0.0517-0.0596-0.0911-0.1113-0.0709-0.0638
M-score -2.44-2.60-2.76-2.71-2.68-2.66-2.79-3.01-2.62-2.71
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