Switch to:
Cyberonics, Inc. (NAS:CYBX)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

CYBX' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 7.11
Current: -2.51

-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 -2.51.


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 * 1.0433+0.528 * 1.0146+0.404 * 1+0.892 * 1.1311+0.115 * 1.2275
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9636+4.679 * -0.0474-0.327 * 1.0304
=-2.51

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $42.1 Mil.
Revenue was 68.191 + 70.101 + 68.872 + 68.344 = $275.5 Mil.
Gross Profit was 61.731 + 63.175 + 62.328 + 61.985 = $249.2 Mil.
Total Current Assets was $197.7 Mil.
Total Assets was $269.2 Mil.
Property, Plant and Equipment(Net PPE) was $38.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.3 Mil.
Selling, General & Admin. Expense(SGA) was $118.3 Mil.
Total Current Liabilities was $24.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 13.9 + 13.888 + 8.674 + 11.532 = $48.0 Mil.
Non Operating Income was -0.035 + -0.041 + -0.131 + -0.129 = $-0.3 Mil.
Cash Flow from Operations was 15.631 + 12.629 + 9.488 + 23.348 = $61.1 Mil.
Accounts Receivable was $35.7 Mil.
Revenue was 62.7 + 62.956 + 60.321 + 57.609 = $243.6 Mil.
Gross Profit was 57.333 + 57.786 + 55.31 + 53.135 = $223.6 Mil.
Total Current Assets was $193.8 Mil.
Total Assets was $250.4 Mil.
Property, Plant and Equipment(Net PPE) was $25.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $108.6 Mil.
Total Current Liabilities was $21.7 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)
=(42.115 / 275.508) / (35.691 / 243.586)
=0.15286307 / 0.1465232
=1.0433

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)
=(63.175 / 243.586) / (61.731 / 275.508)
=0.91780316 / 0.9045799
=1.0146

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 - (197.717 + 38.376) / 269.182) / (1 - (193.752 + 25.878) / 250.41)
=0.12292427 / 0.12291841
=1

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
=275.508 / 243.586
=1.1311

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))
=(4.571 / (4.571 + 25.878)) / (5.347 / (5.347 + 38.376))
=0.15011987 / 0.12229261
=1.2275

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)
=(118.343 / 275.508) / (108.578 / 243.586)
=0.4295447 / 0.44574811
=0.9636

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 + 23.989) / 269.182) / ((0 + 21.658) / 250.41)
=0.08911814 / 0.08649016
=1.0304

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
=(47.994 - -0.336 - 61.096) / 269.182
=-0.0474

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 -2.51 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

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
DSRI 1.12911.04041.08550.83531.14460.93741.00720.96140.89271.1581
GMI 0.99321.00420.97321.01311.04190.960.98290.99570.9660.9958
AQI 0.60430.802120.62150.9860.89030.624712.51621.15290.55330.7881
SGI 1.05990.93431.19331.0610.92561.18451.16831.13521.14721.1639
DEPI 0.75980.84911.78070.84490.85731.49571.22240.79891.63621.2529
SGAI 1.03461.28941.3230.92080.69220.83330.88720.8980.99720.9425
LVGI 0.7580.86854.1261.15850.93710.68350.34880.55330.78911.0112
TATA 0.0067-0.1490.0771-0.2193-0.1791-0.07580.2093-0.013-0.1812-0.1123
M-score -2.39-3.305.06-3.66-3.22-2.713.56-2.26-3.35-2.77

Cyberonics, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.02341.00080.89270.93671.06371.1551.15811.08170.99881.0433
GMI 0.99340.97950.9660.95120.96390.97970.99581.01181.01511.0146
AQI 0.79230.76530.55330.52440.53530.59640.78810.8670.93911
SGI 1.13131.13331.14721.14031.15091.14891.16391.16231.14691.1311
DEPI 1.52121.35081.63621.52720.89161.19911.25321.39551.38941.2275
SGAI 0.98110.99830.99730.97340.94810.93750.94250.9310.94280.9636
LVGI 0.93450.73140.78910.76330.77440.90981.01121.13460.91681.0304
TATA -0.1354-0.1623-0.1812-0.1789-0.1393-0.1179-0.1123-0.1034-0.073-0.0474
M-score -2.98-3.10-3.35-3.33-3.08-2.87-2.77-2.78-2.63-2.51
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide