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Tyler Technologies Inc (NYSE:TYL)
Beneish M-Score
-1.80 (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 -1.80 signals that the company is a manipulator.

TYL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.79   Max: 48
Current: -1.8

-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 * 1.091+0.528 * 1.022+0.404 * 2.4367+0.892 * 1.2618+0.115 * 0.7406
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0901+4.679 * -0.0442-0.327 * 0.9266
=-1.80

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $209.5 Mil.
Revenue was 188.972 + 179.293 + 158.916 + 150.845 = $678.0 Mil.
Gross Profit was 86.936 + 82.118 + 73.222 + 71.833 = $314.1 Mil.
Total Current Assets was $324.0 Mil.
Total Assets was $1,413.1 Mil.
Property, Plant and Equipment(Net PPE) was $115.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.9 Mil.
Selling, General & Admin. Expense(SGA) was $157.4 Mil.
Total Current Liabilities was $352.9 Mil.
Long-Term Debt was $135.0 Mil.
Net Income was 18.872 + 17.079 + 8.618 + 20.142 = $64.7 Mil.
Non Operating Income was -0.72 + -0.467 + -0.24 + 0.255 = $-1.2 Mil.
Cash Flow from Operations was 13.877 + 40.27 + 19.1 + 55.1 = $128.3 Mil.
Accounts Receivable was $152.2 Mil.
Revenue was 146.295 + 134.966 + 127.44 + 128.664 = $537.4 Mil.
Gross Profit was 68.253 + 63.879 + 60.491 + 61.792 = $254.4 Mil.
Total Current Assets was $395.5 Mil.
Total Assets was $646.0 Mil.
Property, Plant and Equipment(Net PPE) was $67.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.8 Mil.
Selling, General & Admin. Expense(SGA) was $114.4 Mil.
Total Current Liabilities was $240.7 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)
=(209.483 / 678.026) / (152.178 / 537.365)
=0.30896013 / 0.28319299
=1.091

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)
=(254.415 / 537.365) / (314.109 / 678.026)
=0.47344915 / 0.46326985
=1.022

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 - (323.951 + 115.886) / 1413.052) / (1 - (395.524 + 67.908) / 646.034)
=0.68873262 / 0.28265076
=2.4367

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
=678.026 / 537.365
=1.2618

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))
=(14.808 / (14.808 + 67.908)) / (36.94 / (36.94 + 115.886))
=0.1790222 / 0.2417128
=0.7406

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)
=(157.367 / 678.026) / (114.415 / 537.365)
=0.23209582 / 0.21291859
=1.0901

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)
=((135 + 352.93) / 1413.052) / ((0 + 240.744) / 646.034)
=0.34530223 / 0.37264912
=0.9266

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
=(64.711 - -1.172 - 128.347) / 1413.052
=-0.0442

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 -1.80 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 own 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.93791.01521.04060.89321.08060.89290.98411.30611.05321.091
GMI 0.99330.99090.97370.97980.9810.99121.00221.00911.02111.022
AQI 0.68660.71980.73990.80150.82550.86740.94142.48512.4342.4367
SGI 1.15171.17171.18721.18351.18911.18171.17451.19861.23261.2618
DEPI 1.20981.08140.96040.96660.98250.98540.98281.11840.90810.7406
SGAI 0.99650.96720.94220.93070.92780.93590.95331.02741.05951.0901
LVGI 0.78230.89220.9180.94540.93570.84080.84330.7280.93750.9266
TATA -0.0503-0.0596-0.0909-0.1126-0.0713-0.0642-0.0404-0.0181-0.0504-0.0442
M-score -2.67-2.66-2.79-3.01-2.62-2.71-2.49-1.40-1.87-1.80
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