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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-3.01 (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 -3.01 suggests that the company is not a manipulator.

TYL' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 48
Current: -3.01

-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 -2.70.


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 * 0.8932+0.528 * 0.9798+0.404 * 0.7694+0.892 * 1.1835+0.115 * 0.9666
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9307+4.679 * -0.1113-0.327 * 0.9386
=-3.01

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $112.7 Mil.
Revenue was 127.44 + 128.664 + 124.371 + 112.626 = $493.1 Mil.
Gross Profit was 60.491 + 61.792 + 58.558 + 52.53 = $233.4 Mil.
Total Current Assets was $346.7 Mil.
Total Assets was $574.0 Mil.
Property, Plant and Equipment(Net PPE) was $65.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.6 Mil.
Selling, General & Admin. Expense(SGA) was $108.3 Mil.
Total Current Liabilities was $232.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 15.317 + 17 + 14.74 + 11.883 = $58.9 Mil.
Non Operating Income was -0.167 + 0.047 + -0.216 + -0.259 = $-0.6 Mil.
Cash Flow from Operations was 28.306 + 66.303 + 12.268 + 16.56 = $123.4 Mil.
Accounts Receivable was $106.6 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.



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)
=(112.66 / 493.101) / (106.57 / 416.643)
=0.22847246 / 0.25578253
=0.8932

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)
=(61.792 / 416.643) / (60.491 / 493.101)
=0.46371354 / 0.47327221
=0.9798

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 - (346.71 + 65.91) / 573.982) / (1 - (217.235 + 64.844) / 444.488)
=0.28112728 / 0.36538444
=0.7694

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
=493.101 / 416.643
=1.1835

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))
=(13.786 / (13.786 + 64.844)) / (14.605 / (14.605 + 65.91))
=0.17532748 / 0.18139477
=0.9666

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)
=(108.26 / 493.101) / (98.289 / 416.643)
=0.21954934 / 0.235907
=0.9307

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 + 232.839) / 573.982) / ((0 + 192.11) / 444.488)
=0.40565558 / 0.43220514
=0.9386

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
=(58.94 - -0.595 - 123.437) / 573.982
=-0.1113

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 -3.01 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 1.13561.0230.97680.99790.96371.01341.02580.93860.93660.8932
GMI 1.02730.94180.99720.92750.93360.99770.96920.99370.99540.9798
AQI 0.84820.96780.90671.22050.90991.07021.00771.01340.72270.7694
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 1.17581.05981.0341.2860.92860.98861.52270.77120.77970.9386
TATA -0.0715-0.0614-0.0762-0.1355-0.0583-0.0324-0.0896-0.0678-0.0637-0.113
M-score -2.81-2.66-2.77-2.90-2.69-2.61-2.98-2.62-2.72-3.02

Tyler Technologies Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.88770.93861.0961.03671.00930.93660.93791.01521.04060.8932
GMI 0.97620.99370.99490.98881.0040.99540.99330.99090.97370.9798
AQI 1.11011.01340.97430.90270.78340.72270.68660.71980.73990.7694
SGI 1.16771.17431.18091.16421.14651.14681.15171.17171.18721.1835
DEPI 0.90790.94571.00871.13851.30431.2481.20981.08140.96040.9666
SGAI 1.01690.97610.93520.94550.97350.98850.99650.96720.94220.9307
LVGI 0.79880.77120.71310.73790.79180.77970.78230.89220.9180.9386
TATA -0.0712-0.0765-0.0668-0.0738-0.0926-0.0608-0.0534-0.0623-0.0926-0.1113
M-score -2.68-2.66-2.45-2.58-2.75-2.70-2.69-2.67-2.80-3.01
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