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AthenaHealth Inc (NAS:ATHN)
Beneish M-Score
-2.98 (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 -2.98 suggests that the company is not a manipulator.

ATHN' s 10-Year Beneish M-Score Range
Min: -2.98   Max: -0.4
Current: -2.98

-2.98
-0.4

During the past 13 years, the highest Beneish M-Score of AthenaHealth Inc was -0.40. The lowest was -2.98. 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 * 1.1017+0.528 * 1.0014+0.404 * 0.8474+0.892 * 1.2649+0.115 * 0.8764
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9987+4.679 * -0.1632-0.327 * 0.9624
=-2.98

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $121.7 Mil.
Revenue was 213.214 + 190.428 + 185.922 + 163.035 = $752.6 Mil.
Gross Profit was 136.94 + 111.085 + 111.148 + 90.887 = $450.1 Mil.
Total Current Assets was $259.1 Mil.
Total Assets was $932.0 Mil.
Property, Plant and Equipment(Net PPE) was $271.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $93.8 Mil.
Selling, General & Admin. Expense(SGA) was $314.9 Mil.
Total Current Liabilities was $205.6 Mil.
Long-Term Debt was $158.8 Mil.
Net Income was 8.729 + -1.631 + -2.162 + -8.055 = $-3.1 Mil.
Non Operating Income was 0.027 + 0.026 + -0.006 + -0.171 = $-0.1 Mil.
Cash Flow from Operations was 44.964 + 40.389 + 49.686 + 14.066 = $149.1 Mil.
Accounts Receivable was $87.3 Mil.
Revenue was 171.579 + 151.527 + 146.301 + 125.596 = $595.0 Mil.
Gross Profit was 108.727 + 88.282 + 86.911 + 72.411 = $356.3 Mil.
Total Current Assets was $178.7 Mil.
Total Assets was $796.4 Mil.
Property, Plant and Equipment(Net PPE) was $213.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $61.9 Mil.
Selling, General & Admin. Expense(SGA) was $249.3 Mil.
Total Current Liabilities was $149.8 Mil.
Long-Term Debt was $173.8 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)
=(121.71 / 752.599) / (87.343 / 595.003)
=0.16171959 / 0.14679422
=1.1017

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)
=(111.085 / 595.003) / (136.94 / 752.599)
=0.59887261 / 0.5980077
=1.0014

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 - (259.074 + 271.552) / 931.998) / (1 - (178.657 + 213.018) / 796.396)
=0.43065758 / 0.50819065
=0.8474

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
=752.599 / 595.003
=1.2649

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))
=(61.853 / (61.853 + 213.018)) / (93.806 / (93.806 + 271.552))
=0.22502556 / 0.25675091
=0.8764

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)
=(314.88 / 752.599) / (249.264 / 595.003)
=0.41839014 / 0.41892898
=0.9987

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)
=((158.75 + 205.609) / 931.998) / ((173.75 + 149.756) / 796.396)
=0.39094397 / 0.40621249
=0.9624

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
=(-3.119 - -0.124 - 149.105) / 931.998
=-0.1632

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 -2.98 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.85450.9691.35581.39681.34911.00110.67080.76860.7911.1017
GMI 1.03161.02691.03121.02561.02851.00991.00961.00360.99521.0014
AQI 0.76760.71972.02372.14892.16432.17230.76280.87740.88070.8474
SGI 1.32421.3031.28681.31291.35451.40911.40141.36021.31731.2649
DEPI 0.9090.76170.84361.8161.58691.55711.36030.67110.81230.8764
SGAI 1.01030.96361.03091.06111.09971.09660.99240.95790.95440.9987
LVGI 1.02430.9132.49363.14093.01632.60481.1870.87370.90020.9624
TATA -0.1233-0.1213-0.0799-0.0822-0.108-0.1143-0.1407-0.1539-0.1569-0.1632
M-score -3.00-2.90-2.35-2.36-2.47-2.65-3.19-3.13-3.16-2.98
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