Switch to:
Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

TYL' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 48
Current: -2.62

-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 * 1.0806+0.528 * 0.981+0.404 * 0.8255+0.892 * 1.1891+0.115 * 0.9825
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9278+4.679 * -0.0709-0.327 * 0.9357
=-2.62

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $105.8 Mil.
Revenue was 134.966 + 127.44 + 128.664 + 124.371 = $515.4 Mil.
Gross Profit was 63.879 + 60.491 + 61.792 + 58.558 = $244.7 Mil.
Total Current Assets was $327.8 Mil.
Total Assets was $568.4 Mil.
Property, Plant and Equipment(Net PPE) was $67.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.7 Mil.
Selling, General & Admin. Expense(SGA) was $111.4 Mil.
Total Current Liabilities was $197.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 17.273 + 15.317 + 17 + 14.74 = $64.3 Mil.
Non Operating Income was 0.181 + -0.167 + 0.047 + -0.216 = $-0.2 Mil.
Cash Flow from Operations was -2.095 + 28.306 + 66.303 + 12.268 = $104.8 Mil.
Accounts Receivable was $82.3 Mil.
Revenue was 112.626 + 110.735 + 107.021 + 103.088 = $433.5 Mil.
Gross Profit was 52.53 + 52.767 + 49.549 + 47.042 = $201.9 Mil.
Total Current Assets was $207.6 Mil.
Total Assets was $434.2 Mil.
Property, Plant and Equipment(Net PPE) was $66.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.1 Mil.
Selling, General & Admin. Expense(SGA) was $101.0 Mil.
Total Current Liabilities was $161.4 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)
=(105.79 / 515.441) / (82.334 / 433.47)
=0.20524173 / 0.18994163
=1.0806

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)
=(60.491 / 433.47) / (63.879 / 515.441)
=0.46574849 / 0.47477791
=0.981

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 - (327.775 + 67.301) / 568.382) / (1 - (207.619 + 66.222) / 434.241)
=0.30491113 / 0.36938014
=0.8255

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
=515.441 / 433.47
=1.1891

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))
=(14.12 / (14.12 + 66.222)) / (14.662 / (14.662 + 67.301))
=0.17574867 / 0.17888559
=0.9825

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)
=(111.438 / 515.441) / (101.01 / 433.47)
=0.21619933 / 0.23302651
=0.9278

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 + 197.654) / 568.382) / ((0 + 161.382) / 434.241)
=0.34774852 / 0.37164155
=0.9357

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
=(64.33 - -0.155 - 104.782) / 568.382
=-0.0709

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 -2.62 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.93861.0961.03671.00930.93660.93791.01521.04060.89321.0806
GMI 0.99370.99490.98881.0040.99540.99330.99090.97370.97980.981
AQI 1.01340.97430.90270.78340.72270.68660.71980.73990.76940.8255
SGI 1.17431.18091.16421.14651.14681.15171.17171.18721.18351.1891
DEPI 0.94571.00871.13851.30431.2481.20981.08140.96040.96660.9825
SGAI 0.97610.93520.94550.97350.98850.99650.96720.94220.93070.9278
LVGI 0.77120.71310.73790.79180.77970.78230.89220.9180.93860.9357
TATA -0.0765-0.0668-0.0738-0.0926-0.0608-0.0534-0.0623-0.0926-0.1113-0.0709
M-score -2.66-2.45-2.58-2.75-2.70-2.69-2.67-2.80-3.01-2.62
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