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Cyberonics Inc (NAS:CYBX)
Beneish M-Score
-2.25 (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.

Cyberonics Inc has a M-score of -2.25 suggests that the company is not a manipulator.

CYBX' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 7.11
Current: -2.25

-10000000
7.11

During the past 13 years, the highest Beneish M-Score of Cyberonics Inc was 7.11. The lowest was -10000000.00. And the median was -2.41.


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 Cyberonics 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 * 1.1151+0.528 * 1.007+0.404 * 1.0968+0.892 * 1.0847+0.115 * 1.0141
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0101+4.679 * -0.0106-0.327 * 0.8231
=-2.25

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $48.3 Mil.
Revenue was 72.004 + 74.849 + 68.191 + 70.101 = $285.1 Mil.
Gross Profit was 65.594 + 67.425 + 61.731 + 63.175 = $257.9 Mil.
Total Current Assets was $215.1 Mil.
Total Assets was $289.9 Mil.
Property, Plant and Equipment(Net PPE) was $40.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.8 Mil.
Selling, General & Admin. Expense(SGA) was $124.4 Mil.
Total Current Liabilities was $24.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 13.519 + 18.428 + 13.9 + 13.888 = $59.7 Mil.
Non Operating Income was 0.171 + -0.089 + -0.035 + -0.041 = $0.0 Mil.
Cash Flow from Operations was 18.098 + 16.448 + 15.631 + 12.629 = $62.8 Mil.
Accounts Receivable was $39.9 Mil.
Revenue was 68.872 + 68.344 + 62.7 + 62.956 = $262.9 Mil.
Gross Profit was 62.328 + 61.985 + 57.333 + 57.786 = $239.4 Mil.
Total Current Assets was $203.7 Mil.
Total Assets was $265.8 Mil.
Property, Plant and Equipment(Net PPE) was $33.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.9 Mil.
Selling, General & Admin. Expense(SGA) was $113.5 Mil.
Total Current Liabilities was $26.9 Mil.
Long-Term Debt was $0.0 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)
=(48.297 / 285.145) / (39.928 / 262.872)
=0.16937698 / 0.15189141
=1.1151

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)
=(67.425 / 262.872) / (65.594 / 285.145)
=0.91083113 / 0.9045398
=1.007

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 - (215.098 + 40.088) / 289.923) / (1 - (203.669 + 33.093) / 265.799)
=0.11981457 / 0.1092442
=1.0968

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
=285.145 / 262.872
=1.0847

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))
=(4.871 / (4.871 + 33.093)) / (5.807 / (5.807 + 40.088))
=0.12830576 / 0.12652794
=1.0141

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)
=(124.363 / 285.145) / (113.498 / 262.872)
=0.43613951 / 0.43176147
=1.0101

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 + 24.15) / 289.923) / ((0 + 26.899) / 265.799)
=0.08329798 / 0.10120053
=0.8231

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
=(59.735 - 0.006 - 62.806) / 289.923
=-0.0106

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.

Cyberonics Inc has a M-score of -2.25 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.

Cyberonics Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
DSRI 1.04041.08550.83531.14460.93741.00720.96140.89271.15811.1584
GMI 1.00420.97321.01311.04190.960.98290.99570.9660.99581.012
AQI 0.802120.62150.9860.89030.624712.51621.15290.55330.78811.092
SGI 0.93431.19331.0610.92561.18451.16831.13521.14721.16391.1089
DEPI 0.84911.78070.84490.85731.49571.22240.79891.63621.25291.1258
SGAI 1.28941.3230.92080.69220.83330.88720.8980.99720.94250.9669
LVGI 0.86854.1261.15850.93710.68350.34880.55330.78911.01120.9245
TATA -0.1490.0771-0.2193-0.1791-0.07580.2093-0.013-0.1812-0.11230.0034
M-score -3.305.06-3.66-3.22-2.713.56-2.26-3.35-2.77-2.13

Cyberonics Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.89270.93671.06371.1551.15811.08170.99881.04331.15841.1151
GMI 0.9660.95120.96390.97970.99581.01181.01511.01461.0121.007
AQI 0.55330.52440.53530.59640.78810.8670.939111.0921.0968
SGI 1.14721.14031.15091.14891.16391.16231.14691.13111.10891.0847
DEPI 1.63621.52720.89161.19911.25321.39551.38941.22751.12541.0141
SGAI 0.99730.97340.94810.93750.94250.9310.94280.96360.96691.0101
LVGI 0.78910.76330.77440.90981.01121.13460.91681.03040.92450.8231
TATA -0.1812-0.1789-0.1393-0.1179-0.1123-0.1034-0.073-0.04740.0034-0.0106
M-score -3.35-3.33-3.08-2.87-2.77-2.78-2.63-2.51-2.13-2.25
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