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ChyronHego Corp (NAS:CHYR)
Beneish M-Score
-2.28 (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 -2.28 suggests that the company is not a manipulator.

CHYR' s 10-Year Beneish M-Score Range
Min: -10.18   Max: 79.44
Current: -2.28

-10.18
79.44

During the past 13 years, the highest Beneish M-Score of ChyronHego Corp was 79.44. The lowest was -10.18. And the median was -2.84.


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 * 0.9373+0.528 * 1.0903+0.404 * 3.0195+0.892 * 1.713+0.115 * 0.9224
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8852+4.679 * -0.2944-0.327 * 0.6209
=-2.28

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $9.01 Mil.
Revenue was 12.621 + 14.715 + 13.959 + 10.716 = $52.01 Mil.
Gross Profit was 7.736 + 9.309 + 8.749 + 7.331 = $33.13 Mil.
Total Current Assets was $17.97 Mil.
Total Assets was $49.98 Mil.
Property, Plant and Equipment(Net PPE) was $4.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.46 Mil.
Selling, General & Admin. Expense(SGA) was $26.20 Mil.
Total Current Liabilities was $16.00 Mil.
Long-Term Debt was $0.76 Mil.
Net Income was -3.242 + -3.76 + -1.077 + -2.085 = $-10.16 Mil.
Non Operating Income was -0.07 + 0.012 + 0.03 + -0.039 = $-0.07 Mil.
Cash Flow from Operations was -0.887 + 3.748 + 1.212 + 0.546 = $4.62 Mil.
Accounts Receivable was $5.61 Mil.
Revenue was 8.017 + 7.413 + 7.248 + 7.684 = $30.36 Mil.
Gross Profit was 5.722 + 5.119 + 4.923 + 5.319 = $21.08 Mil.
Total Current Assets was $10.77 Mil.
Total Assets was $14.74 Mil.
Property, Plant and Equipment(Net PPE) was $1.26 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.90 Mil.
Selling, General & Admin. Expense(SGA) was $17.28 Mil.
Total Current Liabilities was $7.64 Mil.
Long-Term Debt was $0.33 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)
=(9.009 / 52.011) / (5.611 / 30.362)
=0.17321336 / 0.18480337
=0.9373

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)
=(9.309 / 30.362) / (7.736 / 52.011)
=0.69438772 / 0.63688451
=1.0903

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 - (17.97 + 4.209) / 49.982) / (1 - (10.771 + 1.256) / 14.743)
=0.55626025 / 0.18422302
=3.0195

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
=52.011 / 30.362
=1.713

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))
=(0.895 / (0.895 + 1.256)) / (3.459 / (3.459 + 4.209))
=0.41608554 / 0.45109546
=0.9224

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)
=(26.196 / 52.011) / (17.275 / 30.362)
=0.50366269 / 0.56896779
=0.8852

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)
=((0.763 + 16.004) / 49.982) / ((0.327 + 7.638) / 14.743)
=0.33546077 / 0.54025639
=0.6209

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
=(-10.164 - -0.067 - 4.619) / 49.982
=-0.2944

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 -2.28 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.2140.98530.93641.32371.02751.131.64951.59410.88110.9373
GMI 0.99010.98820.98990.9931.01221.00941.01251.03931.05391.0903
AQI 0.96950.98651.02381.08190.34560.33041.03340.94843.05793.0195
SGI 1.13921.19861.04041.01310.95680.92331.07251.29721.56861.713
DEPI 1.06031.03840.94660.94840.92640.94281.41761.20750.98260.9224
SGAI 1.01110.98971.06831.05371.04041.03381.0230.95630.920.8852
LVGI 1.13961.11811.16031.1332.28192.71281.55541.66690.69360.6209
TATA -0.1138-0.1433-0.1444-0.0151-1.3645-1.4781-0.4935-0.5088-0.2615-0.2944
M-score -2.75-3.03-3.24-2.27-9.57-10.18-4.24-4.24-2.33-2.28
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