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ChyronHego Corp (NAS:CHYR)
Beneish M-Score
-2.33 (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.

ChyronHego Corp has a M-score of -2.33 suggests that the company is not a manipulator.

CHYR' s 10-Year Beneish M-Score Range
Min: -9.57   Max: 79.44
Current: -2.33

-9.57
79.44

During the past 13 years, the highest Beneish M-Score of ChyronHego Corp was 79.44. The lowest was -9.57. And the median was -2.75.


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 ChyronHego Corp 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 * 0.8811+0.528 * 1.0539+0.404 * 3.0579+0.892 * 1.5686+0.115 * 0.9826
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.92+4.679 * -0.2615-0.327 * 0.6936
=-2.33

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $7.78 Mil.
Revenue was 14.715 + 13.959 + 10.716 + 8.017 = $47.41 Mil.
Gross Profit was 9.309 + 8.749 + 7.331 + 5.722 = $31.11 Mil.
Total Current Assets was $18.39 Mil.
Total Assets was $50.65 Mil.
Property, Plant and Equipment(Net PPE) was $4.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.91 Mil.
Selling, General & Admin. Expense(SGA) was $24.84 Mil.
Total Current Liabilities was $17.15 Mil.
Long-Term Debt was $0.77 Mil.
Net Income was -3.76 + -1.077 + -2.085 + -0.917 = $-7.84 Mil.
Non Operating Income was 0.012 + 0.03 + -0.039 + -0.083 = $-0.08 Mil.
Cash Flow from Operations was 3.748 + 1.212 + 0.546 + -0.022 = $5.48 Mil.
Accounts Receivable was $5.63 Mil.
Revenue was 7.413 + 7.248 + 7.684 + 7.877 = $30.22 Mil.
Gross Profit was 5.119 + 4.923 + 5.319 + 5.542 = $20.90 Mil.
Total Current Assets was $11.02 Mil.
Total Assets was $15.12 Mil.
Property, Plant and Equipment(Net PPE) was $1.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.92 Mil.
Selling, General & Admin. Expense(SGA) was $17.21 Mil.
Total Current Liabilities was $7.32 Mil.
Long-Term Debt was $0.40 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)
=(7.781 / 47.407) / (5.63 / 30.222)
=0.16413188 / 0.18628813
=0.8811

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)
=(8.749 / 30.222) / (9.309 / 47.407)
=0.69164847 / 0.6562533
=1.0539

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 - (18.388 + 4.145) / 50.652) / (1 - (11.024 + 1.347) / 15.115)
=0.55514096 / 0.18154152
=3.0579

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
=47.407 / 30.222
=1.5686

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))
=(0.919 / (0.919 + 1.347)) / (2.913 / (2.913 + 4.145))
=0.40556046 / 0.41272315
=0.9826

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)
=(24.836 / 47.407) / (17.209 / 30.222)
=0.52388888 / 0.56941963
=0.92

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)
=((0.772 + 17.152) / 50.652) / ((0.397 + 7.315) / 15.115)
=0.35386559 / 0.51022163
=0.6936

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
=(-7.839 - -0.08 - 5.484) / 50.652
=-0.2615

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.

ChyronHego Corp has a M-score of -2.33 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.

ChyronHego Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.81761.25910.85721.16160.50971.45711.10021.2141.02750.8811
GMI 0.97860.93610.92260.98630.97551.01690.99110.99011.01221.0539
AQI 0.08790.2054202.66830.92725.07921.00340.97870.96950.34563.0579
SGI 1.19981.08141.04451.23171.06220.7461.08251.13920.95681.5686
DEPI 1.57930.84371.27880.93340.72591.24030.84621.06030.92640.9826
SGAI 1.03161.09590.99080.9531.0721.14430.98811.01111.04040.92
LVGI 0.96980.92270.45910.98440.32751.30411.16591.13962.28190.6936
TATA 0.04250.01980.0789-0.05490.439-0.1015-0.0916-0.1138-1.3645-0.2625
M-score -2.58-2.4479.44-2.410.99-2.85-2.83-2.75-9.57-2.34

ChyronHego Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.69231.2140.98530.93641.32371.02751.131.64951.59410.8811
GMI 1.00630.99010.98820.98990.9931.01221.00941.01251.03931.0539
AQI 0.96640.96950.98651.02381.08190.34560.33041.03340.94843.0579
SGI 1.09471.13921.19861.04041.01310.95680.92331.07251.29721.5686
DEPI 1.07851.06031.03840.94660.94840.92640.94281.41761.20750.9826
SGAI 1.0381.01110.98971.06831.05371.04041.03381.0230.95630.92
LVGI 1.10561.13961.11811.16031.1332.28192.71281.55541.66690.6936
TATA -0.18-0.1138-0.1433-0.1444-0.0151-1.3645-1.4781-0.4935-0.5088-0.2615
M-score -3.56-2.75-3.03-3.24-2.27-9.57-10.18-4.24-4.24-2.33
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