IRIS Group (XBRU:IRIS) Beneish M-Score : 0.00 (As of May. 21, 2024)

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What is IRIS Group Beneish M-Score?

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.

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

During the past 11 years, the highest Beneish M-Score of IRIS Group was 0.00. The lowest was 0.00. And the median was 0.00.

IRIS Group Beneish M-Score Historical Data

The historical data trend for IRIS Group'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.

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IRIS Group Beneish M-Score Chart

IRIS Group Annual Data

Trend

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Beneish M-Score

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-3.44

-3.45

-4.60

-4.35

-4.41

IRIS Group Semi-Annual Data
	Dec11	Jun12
Beneish M-Score	-4.41	-

Competitive Comparison of IRIS Group's Beneish M-Score

For the Software - Application subindustry, IRIS Group'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.

IRIS Group's Beneish M-Score Distribution in the Software Industry

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

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

IRIS Group 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 IRIS Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1

0.528 * 1.5527

0.404 * 1.2155

0.892 * 0.989

0.115 * 0.9158

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -0.069918

0.327 * 0.8022

-2.21

This Year (Dec11) TTM:

Last Year (Dec10) TTM:

Total Receivables was €0.00 Mil.
Revenue was €121.29 Mil.
Gross Profit was €39.92 Mil.
Total Current Assets was €64.56 Mil.
Total Assets was €114.75 Mil.
Property, Plant and Equipment(Net PPE) was €7.29 Mil.
Depreciation, Depletion and Amortization(DDA) was €2.10 Mil.
Selling, General, & Admin. Expense(SGA) was €0.00 Mil.
Total Current Liabilities was €45.86 Mil.
Long-Term Debt & Capital Lease Obligation was €0.00 Mil.
Net Income was €3.74 Mil.
Gross Profit was €0.00 Mil.
Cash Flow from Operations was €11.77 Mil.

Total Receivables was €0.00 Mil.
Revenue was €122.64 Mil.
Gross Profit was €62.68 Mil.
Total Current Assets was €81.06 Mil.
Total Assets was €127.94 Mil.
Property, Plant and Equipment(Net PPE) was €7.53 Mil.
Depreciation, Depletion and Amortization(DDA) was €1.94 Mil.
Selling, General, & Admin. Expense(SGA) was €36.20 Mil.
Total Current Liabilities was €59.87 Mil.
Long-Term Debt & Capital Lease Obligation was €3.86 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)
	=	(0 / 121.292)	/	(0 / 122.644)
	=	0	/	0
	=	1

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)
	=	(62.675 / 122.644)	/	(39.92 / 121.292)
	=	0.511032	/	0.329123
	=	1.5527

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 - (64.561 + 7.287) / 114.748)	/	(1 - (81.062 + 7.528) / 127.943)
	=	0.373863	/	0.307582
	=	1.2155

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
	=	121.292	/	122.644
	=	0.989

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))
	=	(1.937 / (1.937 + 7.528))	/	(2.097 / (2.097 + 7.287))
	=	0.204649	/	0.223465
	=	0.9158

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)
	=	(0 / 121.292)	/	(36.201 / 122.644)
	=	0	/	0.295171
	=	0

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)
	=	((0 + 45.855) / 114.748)	/	((3.863 + 59.873) / 127.943)
	=	0.399615	/	0.498159
	=	0.8022

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
	=	(3.744 - 0	-	11.767)	/	114.748
	=	-0.069918

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.

IRIS Group has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.

IRIS Group Beneish M-Score Related Terms

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IRIS Group (XBRU:IRIS) Business Description

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