National Research Beneish M-Score

National 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 National Research for today is based on a combination of the following eight different indices:

* 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.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

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.

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.

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.

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.

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.

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

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

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.

National Research has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.

National Research Beneish M-Score Related Terms

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National Research Business Description

Industry

Healthcare » Healthcare Providers & Services NAICS : 923120 SIC : 7372

Comparable Companies

NAS:HLTH NAS:SLP NYSE:AMWL XTER:NXU LSE:CRW NAS:SHCR NAS:ACCD LSE:EMIS OSTO:SUS NAS:HCAT

Traded in Other Exchanges

NRCIB:USA NR1A:Germany

Address

1245 Q Street, Lincoln, NE, USA, 68508

Website

https://www.nrchealth.com

National Research Corp is a provider of analytics and insights that facilitate measurement and improvement of the patient and employee experience while also increasing patient engagement and customer loyalty for healthcare providers, payers, and other healthcare organizations. Its portfolio of solutions represents a set of capabilities that individually and collectively provide value to clients. The solutions are offered at an enterprise level through the Voice of the Customer platform, The Governance Institute, and legacy Experience solutions. It operates in the US and Canada, of which key revenue is derived from the US.

Executives

Jackson Steven D.	officer: President	C/O NATIONAL RESEARCH CORPORATION 1245 Q STREET LINCOLN NE 68508
Martin Joann M	director	6221 ANDREW COURT LINCOLN NE 68512
Nunnelly John N	director	P.O. BOX 2175 AMHERST MA 01004
Karas Kevin R	officer: SVP Finance, CFO, Treas & Secy	C/O NATIONAL RESEARCH CORPORATION 1245 Q STREET LINCOLN NE 68508
Berwick Donald M	director	C/O NATIONAL RESEARCH CORPORATION 1245 Q STREET LINCOLN NE 68508
Mowry Barbara	director	P.O. BOX 103115 DENVER CO 80250
Amandla Mk Trust	10 percent owner	C/O THE BRYN MAWR TRUST COMPANY OF DELAW 20 MONTCHANIN RD, SUITE 100 GREENVILLE DE 19807
Hays Michael D.	director, officer: CEO	C/O NATIONAL RESEARCH CORPORATION 1245 Q STREET LINCOLN NE 68508
K/i/e Trust Under Agreement 10/24/18	10 percent owner	C/O BESSEMER TRUST COMPANY OF DELAWARE 1007 N. ORANGE ST., SUITE 1450 WILMINGTON DE 19801
Endacott Kent E.	10 percent owner	C/O WOODS & AITKEN LLP 301 SOUTH 13TH STREET, SUITE 500 LINCOLN NE 68508
Beans Patrick E	director, officer: CFO and Secretary	AMANDLA LLC 709 PIER 2 LINCOLN NE 68528
Warden Gail L	director	250 WASHINGTON RD GROSSE POINTE MI 48230
Henricks Susan L	officer: President and COO	C/O NATIONAL RESEARCH CORPORATION 1245 Q STREET LINCOLN NE 68508
Schorr Paul C Iii	director	PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SCHORR PAUL C III a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Peetz Jeffery T	10 percent owner	WOODS & AITKEN LLP 301 SOUTH 13TH STREET, SUITE 500 LINCOLN NE 68508