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Forrester Research (NAS:FORR) Beneish M-Score

: -2.68 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.68 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Forrester Research's Beneish M-Score or its related term are showing as below:

FORR' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Med: -2.69   Max: 1.4
Current: -2.68

During the past 13 years, the highest Beneish M-Score of Forrester Research was 1.40. The lowest was -10000000.00. And the median was -2.69.


Forrester Research Beneish M-Score Historical Data

The historical data trend for Forrester Research's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Forrester Research Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.74 -2.29 -2.75 -3.01

Forrester Research Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.12 -3.01 -2.90 -2.80 -2.68

Competitive Comparison

For the Consulting Services subindustry, Forrester Research's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Forrester Research Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Forrester Research's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Forrester Research's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



Forrester Research Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Forrester Research 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 * 0.8704+0.528 * 1.0008+0.404 * 1.0521+0.892 * 1.1112+0.115 * 0.9497
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9841+4.679 * -0.049-0.327 * 0.9089
=-2.68

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $50.6 Mil.
Revenue was 127.679 + 148.246 + 124.971 + 133.728 = $534.6 Mil.
Gross Profit was 74.962 + 87.255 + 71.72 + 81.484 = $315.4 Mil.
Total Current Assets was $204.3 Mil.
Total Assets was $585.2 Mil.
Property, Plant and Equipment(Net PPE) was $80.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $33.9 Mil.
Selling, General, & Admin. Expense(SGA) was $245.1 Mil.
Total Current Liabilities was $247.1 Mil.
Long-Term Debt & Capital Lease Obligation was $103.5 Mil.
Net Income was 5.414 + 13.874 + 4.148 + 8.023 = $31.5 Mil.
Non Operating Income was 0.346 + 0.103 + 0.169 + -0.363 = $0.3 Mil.
Cash Flow from Operations was 3.048 + 12.089 + 22.666 + 22.075 = $59.9 Mil.
Total Receivables was $52.3 Mil.
Revenue was 118.136 + 128.67 + 113.781 + 120.521 = $481.1 Mil.
Gross Profit was 68.3 + 76.412 + 66.304 + 73.064 = $284.1 Mil.
Total Current Assets was $238.1 Mil.
Total Assets was $654.8 Mil.
Property, Plant and Equipment(Net PPE) was $97.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $38.1 Mil.
Selling, General, & Admin. Expense(SGA) was $224.1 Mil.
Total Current Liabilities was $276.8 Mil.
Long-Term Debt & Capital Lease Obligation was $154.8 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(50.602 / 534.624) / (52.317 / 481.108)
=0.0946497 / 0.10874274
=0.8704

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)
=(284.08 / 481.108) / (315.421 / 534.624)
=0.59047033 / 0.58998661
=1.0008

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (204.284 + 80.69) / 585.24) / (1 - (238.119 + 97.373) / 654.792)
=0.51306473 / 0.48763577
=1.0521

4. SGI = Sales Growth Index

Ratio of Revenue 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
=534.624 / 481.108
=1.1112

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(38.085 / (38.085 + 97.373)) / (33.936 / (33.936 + 80.69))
=0.28115726 / 0.29605849
=0.9497

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(245.081 / 534.624) / (224.104 / 481.108)
=0.4584175 / 0.46580809
=0.9841

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((103.539 + 247.074) / 585.24) / ((154.759 + 276.847) / 654.792)
=0.59909268 / 0.65914978
=0.9089

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
=(31.459 - 0.255 - 59.878) / 585.24
=-0.049

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Forrester Research has a M-score of -2.68 suggests that the company is unlikely to be a manipulator.


Forrester Research Beneish M-Score Related Terms

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Forrester Research (NAS:FORR) Business Description

Forrester Research logo
Traded in Other Exchanges
Address
60 Acorn Park Drive, Cambridge, MA, USA, 02140
Forrester Research Inc is a United States-based company that provides independent research, data, and advisory services. It operates through the following segments: The Research segment develops and delivers research, connect, and analytics products; The consulting segment includes the revenues and the related costs of the company's consulting organization, and the Events segment is engaged in developing and hosting in-person and virtual events.
Executives
Le Roy Sarah officer: Chief People Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Romine Warren N director 7325 16TH STREET NW WASHINGTON DC 20012
Leaver Sharyn officer: Chief Research Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Lee Alicia officer: Chief Consulting Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Colony George F director, 10 percent owner, officer: Chairman & CEO C/O FORRESTER RESEARCH INC 1033 MASSACHUSETTS AVE CAMBRIDGE MA 02138
Finn Leo Christian officer: Chief Financial Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Kasparian Michael officer: Chief Information Officer C/O FORRESTER RESEARCH 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Macbeth Shirley officer: Chief Marketing Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Kottmann Sherri officer: Chief People Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Johnson Carrie officer: Chief Research Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Birch Jean director 3050 SOFT HORIZON WAY LAS VEGAS NV 89135
Hippler Kelley officer: Chief Sales Officer C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DR. CAMBRIDGE MA 02140
Friscia Anthony J director C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Wassenaar Yvonne director C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140
Boyce David director C/O FORRESTER RESEARCH, INC. 60 ACORN PARK DRIVE CAMBRIDGE MA 02140

Forrester Research (NAS:FORR) Headlines

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