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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: -4.79   Max: 48
Current: -2.63

-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 * 1.0179+0.528 * 0.9954+0.404 * 0.7227+0.892 * 1.1468+0.115 * 1.248
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9885+4.679 * -0.0606-0.327 * 0.7797
=-2.63

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $116.3 Mil.
Revenue was 110.735 + 107.021 + 103.088 + 95.799 = $416.6 Mil.
Gross Profit was 52.767 + 49.549 + 47.042 + 43.845 = $193.2 Mil.
Total Current Assets was $217.2 Mil.
Total Assets was $444.5 Mil.
Property, Plant and Equipment(Net PPE) was $64.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.8 Mil.
Selling, General & Admin. Expense(SGA) was $98.3 Mil.
Total Current Liabilities was $192.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 10.512 + 11.049 + 9.047 + 8.493 = $39.1 Mil.
Non Operating Income was -0.39 + -0.285 + 0.296 + 0.338 = $-0.0 Mil.
Cash Flow from Operations was 7.389 + 42.115 + -0.498 + 17.084 = $66.1 Mil.
Accounts Receivable was $99.6 Mil.
Revenue was 95.368 + 93.845 + 91.368 + 82.723 = $363.3 Mil.
Gross Profit was 44.64 + 44.944 + 40.699 + 37.419 = $167.7 Mil.
Total Current Assets was $122.1 Mil.
Total Assets was $338.7 Mil.
Property, Plant and Equipment(Net PPE) was $45.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.7 Mil.
Selling, General & Admin. Expense(SGA) was $86.7 Mil.
Total Current Liabilities was $169.7 Mil.
Long-Term Debt was $18.0 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)
=(116.291 / 416.643) / (99.618 / 363.304)
=0.27911425 / 0.27420012
=1.0179

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)
=(49.549 / 363.304) / (52.767 / 416.643)
=0.4616024 / 0.46371354
=0.9954

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 - (217.235 + 64.844) / 444.488) / (1 - (122.053 + 45.381) / 338.666)
=0.36538444 / 0.50560729
=0.7227

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
=416.643 / 363.304
=1.1468

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))
=(12.711 / (12.711 + 45.381)) / (13.786 / (13.786 + 64.844))
=0.2188081 / 0.17532748
=1.248

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)
=(98.289 / 416.643) / (86.706 / 363.304)
=0.235907 / 0.23865963
=0.9885

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 + 192.11) / 444.488) / ((18 + 169.735) / 338.666)
=0.43220514 / 0.55433672
=0.7797

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
=(39.101 - -0.041 - 66.09) / 444.488
=-0.0606

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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.94771.02580.81220.98690.88770.94251.0961.03671.00931.0179
GMI 0.98210.96920.97340.97310.97620.99370.99490.98881.0040.9954
AQI 0.96981.00771.07721.08381.11011.01340.97430.90270.78340.7227
SGI 1.03221.07191.09081.12491.16771.17431.18091.16421.14651.1468
DEPI 1.12081.14230.95960.96110.90790.94571.00871.13851.30431.248
SGAI 0.97991.01571.05581.04961.01690.97610.93520.94550.97350.9885
LVGI 1.36961.52271.21751.12430.79880.77120.71310.73790.79180.7797
TATA -0.0936-0.0896-0.102-0.0519-0.0712-0.0765-0.0689-0.0772-0.0943-0.0606
M-score -3.06-2.98-3.12-2.66-2.68-2.66-2.46-2.60-2.76-2.63
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