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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

TYL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.79   Max: 48
Current: -2.5

-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 * 0.9841+0.528 * 1.0022+0.404 * 0.9414+0.892 * 1.1745+0.115 * 0.9828
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9533+4.679 * -0.0415-0.327 * 0.8433
=-2.50

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 20.142 + 18.836 + 17.273 + 15.317 = $71.6 Mil.
Non Operating Income was 0.255 + 0.185 + 0.181 + 0.877 = $1.5 Mil.
Cash Flow from Operations was 55.1 + 16.908 + -2.095 + 28.306 = $98.2 Mil.
Accounts Receivable was $111.8 Mil.
Revenue was 128.664 + 124.371 + 112.626 + 110.735 = $476.4 Mil.
Gross Profit was 61.792 + 58.558 + 52.53 + 52.767 = $225.6 Mil.
Total Current Assets was $293.0 Mil.
Total Assets was $522.3 Mil.
Property, Plant and Equipment(Net PPE) was $66.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.6 Mil.
Selling, General & Admin. Expense(SGA) was $106.2 Mil.
Total Current Liabilities was $221.4 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)
=(129.228 / 559.546) / (111.803 / 476.396)
=0.23095152 / 0.23468501
=0.9841

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)
=(68.253 / 476.396) / (71.833 / 559.546)
=0.47365427 / 0.47262602
=1.0022

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 - (411.505 + 68.092) / 678.382) / (1 - (293 + 66.694) / 522.263)
=0.29302812 / 0.31127803
=0.9414

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
=559.546 / 476.396
=1.1745

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))
=(14.629 / (14.629 + 66.694)) / (15.255 / (15.255 + 68.092))
=0.17988761 / 0.18302998
=0.9828

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)
=(118.94 / 559.546) / (106.221 / 476.396)
=0.21256519 / 0.22296787
=0.9533

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 + 242.474) / 678.382) / ((0 + 221.361) / 522.263)
=0.35742988 / 0.42384967
=0.8433

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
=(71.568 - 1.498 - 98.219) / 678.382
=-0.0415

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 -2.50 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.03671.00930.93660.93791.01521.04060.89321.08060.89290.9841
GMI 0.98881.0040.99540.99330.99090.97370.97980.9810.99121.0022
AQI 0.90270.78340.72270.68660.71980.73990.76940.82550.86740.9414
SGI 1.16421.14651.14681.15171.17171.18721.18351.18911.18171.1745
DEPI 1.13851.30431.2481.20981.08140.96040.96660.98250.98540.9828
SGAI 0.94550.97350.98850.99650.96720.94220.93070.92780.93590.9533
LVGI 0.73790.79180.77970.78230.89220.9180.93860.93570.84080.8433
TATA -0.0738-0.0926-0.0608-0.0534-0.0623-0.0924-0.113-0.0726-0.0653-0.0415
M-score -2.58-2.75-2.70-2.69-2.67-2.79-3.02-2.63-2.72-2.50
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