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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

TYL' s 10-Year Beneish M-Score Range
Min: -116.51   Max: 48
Current: -2.64

-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 -2.68.


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 * 1.0413+0.528 * 0.9909+0.404 * 0.7198+0.892 * 1.1717+0.115 * 1.0814
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9672+4.679 * -0.0596-0.327 * 0.8922
=-2.64

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $147.9 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.
Net Income was 14.74 + 11.883 + 10.512 + 11.049 = $48.2 Mil.
Non Operating Income was -0.216 + -0.259 + -0.39 + -0.285 = $-1.2 Mil.
Cash Flow from Operations was 12.268 + 16.56 + 7.389 + 42.115 = $78.3 Mil.
Accounts Receivable was $121.3 Mil.
Revenue was 103.088 + 95.799 + 95.368 + 93.845 = $388.1 Mil.
Gross Profit was 47.042 + 43.845 + 44.64 + 44.944 = $180.5 Mil.
Total Current Assets was $146.6 Mil.
Total Assets was $368.9 Mil.
Property, Plant and Equipment(Net PPE) was $55.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.1 Mil.
Selling, General & Admin. Expense(SGA) was $91.3 Mil.
Total Current Liabilities was $183.3 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)
=(147.945 / 454.753) / (121.256 / 388.1)
=0.32533045 / 0.31243494
=1.0413

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)
=(52.53 / 388.1) / (58.558 / 454.753)
=0.46501159 / 0.46927453
=0.9909

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 - (261.032 + 67.16) / 486.817) / (1 - (146.552 + 55.378) / 368.928)
=0.32584113 / 0.45265743
=0.7198

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
=454.753 / 388.1
=1.1717

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))
=(13.056 / (13.056 + 55.378)) / (14.386 / (14.386 + 67.16))
=0.19078236 / 0.17641577
=1.0814

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)
=(103.458 / 454.753) / (91.289 / 388.1)
=0.22750372 / 0.2352203
=0.9672

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 + 215.764) / 486.817) / ((0 + 183.262) / 368.928)
=0.44321377 / 0.49674191
=0.8922

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
=(48.184 - -1.15 - 78.332) / 486.817
=-0.0596

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 -2.64 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.81220.98690.88770.94251.0961.03671.00931.01790.98681.0413
GMI 0.97340.97310.97620.99370.99490.98881.0040.99540.99330.9909
AQI 1.07721.08381.11011.01340.97430.90270.78340.72270.68660.7198
SGI 1.09081.12491.16771.17431.18091.16421.14651.14681.15171.1717
DEPI 0.95960.96110.90790.94571.00871.13851.30431.2481.20981.0814
SGAI 1.05581.04961.01690.97610.93520.94550.97350.98850.99650.9672
LVGI 1.21751.12430.79880.77120.71310.73790.79180.77970.78230.8922
TATA -0.102-0.0519-0.0712-0.0765-0.0668-0.0738-0.0911-0.0578-0.0503-0.0596
M-score -3.12-2.66-2.68-2.66-2.45-2.58-2.74-2.61-2.63-2.64
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