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Insight Enterprises Beneish M-Score

: -1.85 (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 -1.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NSIT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Med: -2.29   Max: 61.91
Current: -1.85

During the past 13 years, the highest Beneish M-Score of Insight Enterprises was 61.91. The lowest was -3.43. And the median was -2.29.


Insight Enterprises Beneish M-Score Historical Data

The historical data trend for Insight Enterprises'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.

Insight Enterprises 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 -1.32 -2.55 -1.85 -2.65 -2.34

Insight Enterprises Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.03 -1.86 -2.34 -1.96 -1.85

Competitive Comparison

For the Electronics & Computer Distribution subindustry, Insight Enterprises'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.

   

Insight Enterprises Beneish M-Score Distribution

For the Hardware industry and Technology sector, Insight Enterprises's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Insight Enterprises's Beneish M-Score falls into.



Insight Enterprises 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 Insight Enterprises 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 * 0.9854+0.528 * 1.0359+0.404 * 0.869+0.892 * 1.2032+0.115 * 1.339
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9276+4.679 * 0.0982-0.327 * 1.0351
=-1.85

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $3,610 Mil.
Revenue was 2743.377 + 2650.85 + 2566.023 + 2447.521 = $10,408 Mil.
Gross Profit was 437.889 + 378.861 + 384.855 + 364.545 = $1,566 Mil.
Total Current Assets was $4,401 Mil.
Total Assets was $5,604 Mil.
Property, Plant and Equipment(Net PPE) was $200 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General, & Admin. Expense(SGA) was $1,172 Mil.
Total Current Liabilities was $2,969 Mil.
Long-Term Debt & Capital Lease Obligation was $719 Mil.
Net Income was 89.184 + 56.631 + 62.133 + 55.483 = $263 Mil.
Non Operating Income was -2.644 + 1.471 + -1.426 + -0.807 = $-3 Mil.
Cash Flow from Operations was -157.758 + -284.239 + 281.499 + -122.975 = $-283 Mil.
Total Receivables was $3,045 Mil.
Revenue was 2229.501 + 2193.068 + 2291.315 + 1936.478 = $8,650 Mil.
Gross Profit was 366.683 + 331.474 + 342.654 + 307.563 = $1,348 Mil.
Total Current Assets was $3,555 Mil.
Total Assets was $4,667 Mil.
Property, Plant and Equipment(Net PPE) was $150 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General, & Admin. Expense(SGA) was $1,051 Mil.
Total Current Liabilities was $2,484 Mil.
Long-Term Debt & Capital Lease Obligation was $483 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)
=(3610.449 / 10407.771) / (3045.324 / 8650.362)
=0.34689935 / 0.35204585
=0.9854

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)
=(1348.374 / 8650.362) / (1566.15 / 10407.771)
=0.15587486 / 0.15047891
=1.0359

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 - (4401.004 + 199.617) / 5604.323) / (1 - (3555.229 + 149.979) / 4667.047)
=0.17909425 / 0.20609156
=0.869

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
=10407.771 / 8650.362
=1.2032

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))
=(59.435 / (59.435 + 149.979)) / (53.692 / (53.692 + 199.617))
=0.28381579 / 0.21196246
=1.339

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)
=(1172.494 / 10407.771) / (1050.599 / 8650.362)
=0.11265563 / 0.12145145
=0.9276

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)
=((718.708 + 2968.915) / 5604.323) / ((483.252 + 2483.654) / 4667.047)
=0.65799616 / 0.63571376
=1.0351

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
=(263.431 - -3.406 - -283.473) / 5604.323
=0.0982

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.

Insight Enterprises has a M-score of -1.85 suggests that the company is unlikely to be a manipulator.


Insight Enterprises Beneish M-Score Related Terms

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Insight Enterprises Business Description

Insight Enterprises logo
Traded in Other Exchanges
Address
6820 South Harl Avenue, Tempe, AZ, USA, 85283
Insight Enterprises Inc is a Fortune 500 global IT provider primarily engaged in helping businesses of all sizes, large enterprises, governments, schools, and health care organizations. The company has three geographic operating segments: North America, EMEA, and APAC. It generates maximum revenue from North America segment. The company provides digital innovation, cloud/data center transformation, connected workforce, and supply chain optimization solutions and services.
Executives
Burger Daniel officer: President INA 6820 S HARL AVENUE TEMPE AZ 85283
Nallapati Sumana officer: Chief Information Officer 6820 S HARL AVENUE TEMPE AZ 85283
Vasin Jennifer M officer: Chief Human Resources Officer 6820 S HARL AVENUE TEMPE AZ 85283
Valueact Capital Management, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Va Partners I, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Holdings Gp, Llc director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Holdings, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Capital Master Fund, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Capital Management, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, 4TH FLOOR SAN FRANCISCO CA 94129
Valueact Holdings Ii, L.p. director, other: See Remarks ONE LETTERMAN DRIVE BUILDING D, FOURTH FLOOR SAN FRANCISCO CA 94129
Baum Alexander L. director ONE LETTERMAN DRIVE BUILDING D, FOURTH FLOOR SAN FRANCISCO CA 94129
Morgado James A. officer: SVP Finance 6820 S HARL AVENUE TEMPE AZ 85283
Desousa Emma officer: President, EMEA 6820 S HARL AVENUE TEMPE AZ 85283
Mullen Joyce A officer: President, North America 8111 LYNDALE AVENUE SOUTH BLOOMINGTON MN 55420
Shumway Jeffery officer: Chief Information Officer 6820 S HARL AVENUE TEMPE AZ 85283

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