GURUFOCUS.COM » STOCK LIST » USA » NAS » Paya Holdings Inc (NAS:PAYA) » Definitions » Beneish M-Score
Switch to:

Paya Holdings Beneish M-Score

: -2.73 (As of Today)
View and export this data going back to 2020. Start your Free Trial

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 -2.73 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PAYA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73   Med: -2.59   Max: -2.48
Current: -2.73

During the past 4 years, the highest Beneish M-Score of Paya Holdings was -2.48. The lowest was -2.73. And the median was -2.59.


Paya Holdings Beneish M-Score Historical Data

The historical data trend for Paya Holdings'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.

Paya Holdings Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Beneish M-Score
- - -2.55 -2.48

Paya Holdings Quarterly Data
Dec18 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 - - -2.48 -2.62 -2.73

Competitive Comparison

For the Software - Infrastructure subindustry, Paya Holdings'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.

   

Paya Holdings Beneish M-Score Distribution

For the Software industry and Technology sector, Paya Holdings's Beneish M-Score distribution charts can be found below:

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



Paya Holdings 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 Paya Holdings 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 * 0.8613+0.528 * 0.9982+0.404 * 0.9527+0.892 * 1.1935+0.115 * 1.0197
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0006+4.679 * -0.0588-0.327 * 1.0064
=-2.73

* 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 $28.5 Mil.
Revenue was 72.492 + 65.993 + 67.059 + 63.058 = $268.6 Mil.
Gross Profit was 36.751 + 34.75 + 34.654 + 32.554 = $138.7 Mil.
Total Current Assets was $274.8 Mil.
Total Assets was $650.2 Mil.
Property, Plant and Equipment(Net PPE) was $17.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $31.2 Mil.
Selling, General, & Admin. Expense(SGA) was $85.0 Mil.
Total Current Liabilities was $127.1 Mil.
Long-Term Debt & Capital Lease Obligation was $244.1 Mil.
Net Income was 1.646 + 2.212 + 4.259 + -2.961 = $5.2 Mil.
Non Operating Income was -0.183 + 1.794 + 0.002 + -0.067 = $1.5 Mil.
Cash Flow from Operations was 12.868 + 4.061 + 17.972 + 6.919 = $41.8 Mil.
Total Receivables was $27.7 Mil.
Revenue was 63.984 + 55.255 + 54.003 + 51.819 = $225.1 Mil.
Gross Profit was 33.785 + 29.118 + 27.212 + 25.9 = $116.0 Mil.
Total Current Assets was $250.4 Mil.
Total Assets was $627.2 Mil.
Property, Plant and Equipment(Net PPE) was $14.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.1 Mil.
Selling, General, & Admin. Expense(SGA) was $71.2 Mil.
Total Current Liabilities was $113.1 Mil.
Long-Term Debt & Capital Lease Obligation was $242.7 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)
=(28.494 / 268.602) / (27.719 / 225.061)
=0.10608261 / 0.12316216
=0.8613

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)
=(116.015 / 225.061) / (138.709 / 268.602)
=0.51548247 / 0.5164109
=0.9982

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 - (274.782 + 17.515) / 650.172) / (1 - (250.405 + 14.413) / 627.207)
=0.55043127 / 0.57778214
=0.9527

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
=268.602 / 225.061
=1.1935

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))
=(27.106 / (27.106 + 14.413)) / (31.17 / (31.17 + 17.515))
=0.65285773 / 0.64023827
=1.0197

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)
=(85.037 / 268.602) / (71.21 / 225.061)
=0.31659109 / 0.31640311
=1.0006

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)
=((244.125 + 127.085) / 650.172) / ((242.725 + 113.109) / 627.207)
=0.57094123 / 0.56733104
=1.0064

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
=(5.156 - 1.546 - 41.82) / 650.172
=-0.0588

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.

Paya Holdings has a M-score of -2.73 suggests that the company is unlikely to be a manipulator.


Paya Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Paya Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Paya Holdings Business Description

Paya Holdings logo
Traded in Other Exchanges
Address
303 Perimeter Center N, Suite 600, Atlanta, GA, USA, 30346
Paya Holdings Inc is a provider of integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies. Its operating segment includes Integrated Solutions and Payment Services. The company generates maximum revenue from the Integrated Solutions segment. Integrated Solutions segment represents the delivery of credit and debit card payment solutions, and to a lesser extent, ACH processing solutions to customers via integrations with software partners across strategic vertical markets. Integrated Solutions partners also include vertical focused front-end Customer Relationship Management software providers as well as back-end Enterprise Resource Planning and accounting solutions.
Executives
Boyda Debora director 303 PERIMETER CENTER NORTH ATLANTA GA 30346
Devarasetty Balaji officer: Chief Information Officer 303 PERIMETER CENTER NORTH ATLANTA GA 30346
Shepard Michele officer: Chief Commercial Officer 303 PERIMETER CIRCLE NORTH ATLANTA GA 30346
Singh Sid director 1550 PEACHTREE STREET NW ATLANTA GA 30309
Chukwu Oni director 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Doster Melinda officer: GENERAL COUNSEL & HHR 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Bell Eric Christopher officer: Chief Accounting Officer 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Renzulli Glenn Joseph officer: Chief Financial Officer 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Scappa Christina officer: See Remarks. 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Winfield Darrell Gerard officer: Chief Information Officer 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Weiner Benjamin Nicolas officer: See Remarks. 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Trala Anna May Louise director 303 PERIMETER CENTER NORTH, SUITE 600 ATLANTA GA 30346
Gtcr Partners Xi/b Lp director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600 CHICAGO IL 60654
Gtcr Investment Xi Llc director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600 CHICAGO IL 60654
Gtcr Partners Xi/a&c Lp director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600 CHICAGO IL 60654

Paya Holdings Headlines

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)