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AthenaHealth Inc (NAS:ATHN)
Beneish M-Score
-2.93 (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 -2.93 suggests that the company is not a manipulator.

ATHN' s 10-Year Beneish M-Score Range
Min: -3.19   Max: -0.4
Current: -2.93

-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 * 1.0834+0.528 * 0.9806+0.404 * 1.0129+0.892 * 1.2586+0.115 * 0.9893
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0226+4.679 * -0.1568-0.327 * 1.0376
=-2.93

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $118.7 Mil.
Revenue was 206.434 + 213.214 + 190.428 + 185.922 = $796.0 Mil.
Gross Profit was 121.877 + 136.94 + 111.085 + 111.148 = $481.1 Mil.
Total Current Assets was $219.0 Mil.
Total Assets was $968.9 Mil.
Property, Plant and Equipment(Net PPE) was $282.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $98.9 Mil.
Selling, General & Admin. Expense(SGA) was $331.9 Mil.
Total Current Liabilities was $128.8 Mil.
Long-Term Debt was $265.0 Mil.
Net Income was -8.832 + 8.729 + -1.631 + -2.162 = $-3.9 Mil.
Non Operating Income was 0 + 0.027 + 0.026 + -0.006 = $0.0 Mil.
Cash Flow from Operations was 12.924 + 44.964 + 40.389 + 49.686 = $148.0 Mil.
Accounts Receivable was $87.0 Mil.
Revenue was 163.035 + 171.579 + 151.527 + 146.301 = $632.4 Mil.
Gross Profit was 90.887 + 108.727 + 88.282 + 86.911 = $374.8 Mil.
Total Current Assets was $231.4 Mil.
Total Assets was $846.8 Mil.
Property, Plant and Equipment(Net PPE) was $212.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $73.2 Mil.
Selling, General & Admin. Expense(SGA) was $257.8 Mil.
Total Current Liabilities was $161.7 Mil.
Long-Term Debt was $170.0 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)
=(118.656 / 795.998) / (87.018 / 632.442)
=0.1490657 / 0.13759048
=1.0834

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)
=(136.94 / 632.442) / (121.877 / 795.998)
=0.59263458 / 0.60433569
=0.9806

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 - (218.954 + 282.837) / 968.947) / (1 - (231.399 + 212.338) / 846.812)
=0.48212751 / 0.47599113
=1.0129

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
=795.998 / 632.442
=1.2586

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))
=(73.174 / (73.174 + 212.338)) / (98.888 / (98.888 + 282.837))
=0.25629045 / 0.2590556
=0.9893

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)
=(331.873 / 795.998) / (257.849 / 632.442)
=0.41692693 / 0.40770379
=1.0226

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)
=((265 + 128.806) / 968.947) / ((170 + 161.708) / 846.812)
=0.40642677 / 0.39171386
=1.0376

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
=(-3.896 - 0.047 - 147.963) / 968.947
=-0.1568

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 -2.93 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.9691.35581.39681.34911.00110.67080.76860.7911.10171.0834
GMI 1.02691.03121.02561.02851.00991.00961.00360.99521.00140.9806
AQI 0.71972.02372.14892.16432.17230.76280.87740.88070.84741.0129
SGI 1.3031.28681.31291.35451.40911.40141.36021.31731.26491.2586
DEPI 0.76170.84361.8161.58691.55711.36030.67110.81230.87640.9893
SGAI 0.96361.03091.06111.09971.09660.99240.95790.95440.99871.0226
LVGI 0.9132.49363.14093.01632.60481.1870.87370.90020.96241.0376
TATA -0.1213-0.0799-0.0822-0.108-0.1143-0.1409-0.1541-0.1571-0.1634-0.1568
M-score -2.90-2.35-2.36-2.47-2.65-3.19-3.13-3.16-2.98-2.93
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