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AthenaHealth Inc (NAS:ATHN)
Beneish M-Score
-3.05 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

AthenaHealth Inc has a M-score of -3.05 suggests that the company is not a manipulator.

ATHN' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -0.4
Current: -3.05

-3.19
-0.4

During the past 13 years, the highest Beneish M-Score of AthenaHealth Inc was -0.40. The lowest was -3.19. And the median was -2.65.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 AthenaHealth Inc 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 * 1.0502+0.528 * 0.9821+0.404 * 0.9668+0.892 * 1.2421+0.115 * 0.9962
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0051+4.679 * -0.1648-0.327 * 1.0999
=-3.05

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $127.3 Mil.
Revenue was 224.694 + 206.434 + 213.214 + 190.428 = $834.8 Mil.
Gross Profit was 134.795 + 121.877 + 136.94 + 111.085 = $504.7 Mil.
Total Current Assets was $279.8 Mil.
Total Assets was $1,052.2 Mil.
Property, Plant and Equipment(Net PPE) was $298.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $103.2 Mil.
Selling, General & Admin. Expense(SGA) was $341.2 Mil.
Total Current Liabilities was $167.8 Mil.
Long-Term Debt was $296.3 Mil.
Net Income was 9.349 + -8.832 + 8.729 + -1.631 = $7.6 Mil.
Non Operating Income was 21.081 + 0 + 0.027 + 0.026 = $21.1 Mil.
Cash Flow from Operations was 61.656 + 12.924 + 44.964 + 40.389 = $159.9 Mil.
Accounts Receivable was $97.6 Mil.
Revenue was 185.922 + 163.035 + 171.579 + 151.527 = $672.1 Mil.
Gross Profit was 111.148 + 90.887 + 108.727 + 88.282 = $399.0 Mil.
Total Current Assets was $227.1 Mil.
Total Assets was $865.7 Mil.
Property, Plant and Equipment(Net PPE) was $235.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $80.9 Mil.
Selling, General & Admin. Expense(SGA) was $273.3 Mil.
Total Current Liabilities was $180.8 Mil.
Long-Term Debt was $166.3 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(127.263 / 834.77) / (97.561 / 672.063)
=0.15245277 / 0.14516645
=1.0502

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)
=(121.877 / 672.063) / (134.795 / 834.77)
=0.59375981 / 0.60459408
=0.9821

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (279.758 + 298.195) / 1052.202) / (1 - (227.134 + 234.962) / 865.652)
=0.45072049 / 0.46618734
=0.9668

4. SGI = Sales Growth Index

Ratio of sales 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
=834.77 / 672.063
=1.2421

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(80.928 / (80.928 + 234.962)) / (103.231 / (103.231 + 298.195))
=0.25619045 / 0.25716072
=0.9962

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(341.224 / 834.77) / (273.309 / 672.063)
=0.40876409 / 0.4066717
=1.0051

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((296.25 + 167.788) / 1052.202) / ((166.25 + 180.846) / 865.652)
=0.44101608 / 0.40096482
=1.0999

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
=(7.615 - 21.134 - 159.933) / 1052.202
=-0.1648

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

AthenaHealth Inc has a M-score of -3.05 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

AthenaHealth Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.02121.06391.21381.03670.84951.00770.9691.00111.1017
GMI 0.93710.95570.9680.96430.95750.97681.02691.00991.0014
AQI 0.84860.2744.16781.93150.88651.29370.71972.17230.8474
SGI 1.4161.32921.35241.38341.30241.31981.3031.40911.2649
DEPI 0.86720.96391.44270.8950.87431.08230.76171.55710.8764
SGAI 0.82980.87331.03860.97271.0481.01630.96361.09660.9987
LVGI 1.26340.16991.15061.10750.81620.95120.9132.60480.9624
TATA -0.1609-0.04470.0663-0.1132-0.1226-0.1196-0.1217-0.1143-0.1632
M-score -3.01-2.36-0.40-2.32-2.95-2.62-2.90-2.65-2.98

AthenaHealth Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.35581.39681.34911.00110.67080.76860.7911.10171.08341.0502
GMI 1.03121.02561.02851.00991.00961.00360.99521.00140.98060.9821
AQI 2.02372.14892.16432.17230.76280.87740.88070.84741.01290.9668
SGI 1.28681.31291.35451.40911.40141.36021.31731.26491.25861.2421
DEPI 0.84361.8161.58691.55711.36030.67110.81230.87640.98930.9962
SGAI 1.03091.06111.09971.09660.99240.95790.95440.99871.02261.0051
LVGI 2.49363.14093.01632.60481.1870.87370.90020.96241.03761.0999
TATA -0.0799-0.0822-0.108-0.1143-0.1409-0.1541-0.1571-0.1634-0.1568-0.1648
M-score -2.35-2.36-2.47-2.65-3.19-3.13-3.16-2.98-2.93-3.05
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