Altair Engineering Beneish M-Score Historical Data
The historical data trend for Altair Engineering'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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Altair Engineering Annual Data
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Trend |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
Array
(
[0] => -
[1] => -
[2] => -
[3] => -
[4] => -2.87
[5] => -2.67
[6] => -2.57
[7] => -2.54
[8] => -2.88
)
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-2.87 |
-2.67 |
-2.57 |
-2.54 |
-2.88 |
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Altair Engineering Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.54 |
-2.93 |
-2.93 |
-3.04 |
-2.88 |
Competitive Comparison
For the Software - Infrastructure subindustry, Altair Engineering'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.
Altair Engineering Beneish M-Score Distribution
For the Software industry and Technology sector, Altair Engineering's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Altair Engineering's Beneish M-Score falls into.
Altair Engineering 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 Altair Engineering 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 * 1.0655 | + | 0.528 * 0.9801 | + | 0.404 * 0.8625 | + | 0.892 * 1.0707 | + | 0.115 * 0.9336 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9768 | + | 4.679 * -0.103231 | - | 0.327 * 0.8997 |
| = | -2.88 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $207.1 Mil.
Revenue was 171.503 + 134.003 + 141.161 + 166.034 = $612.7 Mil.
Gross Profit was 142.33 + 104.917 + 110.364 + 133.299 = $490.9 Mil.
Total Current Assets was $700.6 Mil.
Total Assets was $1,363.5 Mil.
Property, Plant and Equipment(Net PPE) was $70.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.1 Mil.
Selling, General, & Admin. Expense(SGA) was $247.0 Mil.
Total Current Liabilities was $324.1 Mil.
Long-Term Debt & Capital Lease Obligation was $248.6 Mil.
Net Income was 19.675 + -4.362 + -22.28 + -1.959 = $-8.9 Mil.
Non Operating Income was 3.631 + -2.933 + 0.211 + 3.613 = $4.5 Mil.
Cash Flow from Operations was 21.651 + 16.427 + 30.03 + 59.199 = $127.3 Mil.
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Total Receivables was $181.5 Mil.
Revenue was 160.433 + 119.351 + 132.656 + 159.781 = $572.2 Mil.
Gross Profit was 126.579 + 91.442 + 103.133 + 128.178 = $449.3 Mil.
Total Current Assets was $526.8 Mil.
Total Assets was $1,204.7 Mil.
Property, Plant and Equipment(Net PPE) was $71.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.5 Mil.
Selling, General, & Admin. Expense(SGA) was $236.2 Mil.
Total Current Liabilities was $232.7 Mil.
Long-Term Debt & Capital Lease Obligation was $329.7 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) |
| = | (207.111 / 612.701) | / | (181.538 / 572.221) |
| = | 0.338029 | / | 0.317252 |
| | = | 1.0655 |
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) |
| = | (449.332 / 572.221) | / | (490.91 / 612.701) |
| = | 0.785242 | / | 0.801223 |
| | = | 0.9801 |
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 - (700.623 + 70.562) / 1363.493) | / | (1 - (526.826 + 71.118) / 1204.738) |
| = | 0.434405 | / | 0.503673 |
| | = | 0.8625 |
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 |
| = | 612.701 | / | 572.221 |
| | = | 1.0707 |
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)) |
| = | (35.504 / (35.504 + 71.118)) | / | (39.124 / (39.124 + 70.562)) |
| = | 0.332989 | / | 0.356691 |
| | = | 0.9336 |
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) |
| = | (247.025 / 612.701) | / | (236.172 / 572.221) |
| = | 0.403174 | / | 0.412729 |
| | = | 0.9768 |
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) |
| = | ((248.554 + 324.11) / 1363.493) | / | ((329.669 + 232.738) / 1204.738) |
| = | 0.419998 | / | 0.466829 |
| | = | 0.8997 |
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 |
| = | (-8.926 - 4.522 | - | 127.307) | / | 1363.493 |
| | = | -0.103231 |
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.
Altair Engineering has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.
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