Switch to:
Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-1.76 (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 -1.76 signals that the company is a manipulator.

TYL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.79   Max: 48
Current: -1.76

-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 -2.67.


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 * 1.1305+0.528 * 1.0159+0.404 * 2.4079+0.892 * 1.2898+0.115 * 0.6695
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0919+4.679 * -0.0529-0.327 * 0.7911
=-1.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $188.4 Mil.
Revenue was 194.497 + 188.972 + 179.293 + 158.916 = $721.7 Mil.
Gross Profit was 93.48 + 86.936 + 82.118 + 73.222 = $335.8 Mil.
Total Current Assets was $277.3 Mil.
Total Assets was $1,352.8 Mil.
Property, Plant and Equipment(Net PPE) was $121.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.5 Mil.
Selling, General & Admin. Expense(SGA) was $167.5 Mil.
Total Current Liabilities was $348.5 Mil.
Long-Term Debt was $34.0 Mil.
Net Income was 22.264 + 18.872 + 17.079 + 8.618 = $66.8 Mil.
Non Operating Income was -0.526 + -0.72 + -0.467 + -0.24 = $-2.0 Mil.
Cash Flow from Operations was 67.091 + 13.877 + 40.27 + 19.1 = $140.3 Mil.
Accounts Receivable was $129.2 Mil.
Revenue was 150.845 + 146.295 + 134.966 + 127.44 = $559.5 Mil.
Gross Profit was 71.833 + 68.253 + 63.879 + 60.491 = $264.5 Mil.
Total Current Assets was $411.5 Mil.
Total Assets was $678.4 Mil.
Property, Plant and Equipment(Net PPE) was $68.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.3 Mil.
Selling, General & Admin. Expense(SGA) was $118.9 Mil.
Total Current Liabilities was $242.5 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)
=(188.429 / 721.678) / (129.228 / 559.546)
=0.26109844 / 0.23095152
=1.1305

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)
=(264.456 / 559.546) / (335.756 / 721.678)
=0.47262602 / 0.4652435
=1.0159

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 - (277.327 + 120.963) / 1352.766) / (1 - (411.505 + 68.092) / 678.382)
=0.70557362 / 0.29302812
=2.4079

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
=721.678 / 559.546
=1.2898

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))
=(15.255 / (15.255 + 68.092)) / (45.509 / (45.509 + 120.963))
=0.18302998 / 0.2733733
=0.6695

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)
=(167.505 / 721.678) / (118.94 / 559.546)
=0.2321049 / 0.21256519
=1.0919

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)
=((34 + 348.492) / 1352.766) / ((0 + 242.474) / 678.382)
=0.28274809 / 0.35742988
=0.7911

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
=(66.833 - -1.953 - 140.338) / 1352.766
=-0.0529

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 -1.76 signals that the company is likely to 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 local exchange's currency.

Tyler Technologies Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.0230.97680.99790.96371.01341.02580.93860.93660.89321.3061
GMI 0.94180.99720.92750.93360.99770.96920.99370.99540.97981.0091
AQI 0.96780.90671.22050.90991.07021.00771.01340.72270.80152.4851
SGI 1.14581.12541.20611.0950.99431.07191.17431.14681.18351.1986
DEPI 1.11611.08371.65371.53540.8881.14230.94571.2480.96661.1184
SGAI 0.9760.88881.00861.01760.99661.01570.97610.98850.93071.0274
LVGI 1.05981.0341.2860.92860.98861.52270.77120.77970.94540.728
TATA -0.0614-0.0762-0.1355-0.0583-0.0324-0.0896-0.0678-0.0578-0.1126-0.0181
M-score -2.66-2.77-2.90-2.69-2.61-2.98-2.62-2.69-3.01-1.40

Tyler Technologies Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.01521.04060.89321.08060.89290.98411.30611.05321.0911.1305
GMI 0.99090.97370.97980.9810.99121.00221.00911.02111.0221.0159
AQI 0.71980.73990.80150.82550.86740.94142.48512.4342.43672.4079
SGI 1.17171.18721.18351.18911.18171.17451.19861.23261.26181.2898
DEPI 1.08140.96040.96660.98250.98540.98281.11840.90810.74060.6695
SGAI 0.96720.94220.93070.92780.93590.95331.02741.05951.09011.0919
LVGI 0.89220.9180.94540.93570.84080.84330.7280.93750.92660.7911
TATA -0.0596-0.0909-0.1126-0.0713-0.0642-0.0404-0.0181-0.0504-0.0442-0.0529
M-score -2.66-2.79-3.01-2.62-2.71-2.49-1.40-1.87-1.80-1.76
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK