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Cyberonics Inc (NAS:CYBX)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

CYBX' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 7.02
Current: -2.83

-10000000
7.02

During the past 13 years, the highest Beneish M-Score of Cyberonics Inc was 7.02. 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 * 1.0802+0.528 * 1.0061+0.404 * 0.836+0.892 * 1.0541+0.115 * 0.8431
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9482+4.679 * -0.0645-0.327 * 1.2885
=-2.83

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

This Year (Jul15) TTM:Last Year (Jul14) TTM:
Accounts Receivable was $55.0 Mil.
Revenue was 81.011 + 74.072 + 72.065 + 73.417 = $300.6 Mil.
Gross Profit was 71.578 + 66.477 + 65.525 + 66.651 = $270.2 Mil.
Total Current Assets was $263.6 Mil.
Total Assets was $338.2 Mil.
Property, Plant and Equipment(Net PPE) was $40.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.2 Mil.
Selling, General & Admin. Expense(SGA) was $124.3 Mil.
Total Current Liabilities was $36.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 12.419 + 10.514 + 16.541 + 17.273 = $56.7 Mil.
Non Operating Income was -2.068 + 0.112 + 0.203 + -0.007 = $-1.8 Mil.
Cash Flow from Operations was 18.738 + 16.173 + 20.873 + 24.531 = $80.3 Mil.
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.



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)
=(54.991 / 300.565) / (48.297 / 285.145)
=0.18295876 / 0.16937698
=1.0802

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)
=(66.477 / 285.145) / (71.578 / 300.565)
=0.9045398 / 0.89907674
=1.0061

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 - (263.615 + 40.735) / 338.227) / (1 - (215.098 + 40.088) / 289.923)
=0.10016054 / 0.11981457
=0.836

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
=300.565 / 285.145
=1.0541

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))
=(5.807 / (5.807 + 40.088)) / (7.193 / (7.193 + 40.735))
=0.12652794 / 0.15007929
=0.8431

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)
=(124.298 / 300.565) / (124.363 / 285.145)
=0.41354782 / 0.43613951
=0.9482

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 + 36.303) / 338.227) / ((0 + 24.15) / 289.923)
=0.10733324 / 0.08329798
=1.2885

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
=(56.747 - -1.76 - 80.315) / 338.227
=-0.0645

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 -2.83 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

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
DSRI 1.08550.83531.14460.93741.00720.96140.89271.15811.15840.9653
GMI 0.97321.01311.04190.960.98290.99570.9660.99581.0120.9963
AQI 20.62150.9860.89030.624712.51621.15290.55330.78811.0920.9505
SGI 1.19331.0610.92561.18451.16831.13521.14721.16391.10891.0338
DEPI 1.78070.84490.85731.49571.22240.79891.63621.25291.12580.8133
SGAI 1.3230.92080.69220.83330.88720.8980.99720.94250.96690.9911
LVGI 4.1261.15850.93710.68350.34880.55330.78911.01120.92450.9795
TATA 0.0771-0.2193-0.1791-0.07580.2093-0.013-0.1812-0.11230.0034-0.0706
M-score 5.06-3.66-3.22-2.713.56-2.26-3.35-2.77-2.13-2.85

Cyberonics Inc Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
DSRI 1.15811.08170.99881.04331.15841.11511.07361.05760.96531.0802
GMI 0.99581.01181.01511.01461.0121.0071.00050.99720.99631.0061
AQI 0.78810.8670.939111.0921.09680.98350.95840.95050.836
SGI 1.16391.16231.14691.13111.10891.08471.06831.06111.03381.0541
DEPI 1.25321.39551.38941.22751.12541.01410.97380.96540.81330.8431
SGAI 0.94250.9310.94280.96360.96691.01011.00681.0050.99110.9482
LVGI 1.01121.13460.91681.03040.92450.82310.90110.97860.97951.2885
TATA -0.1123-0.1034-0.073-0.04740.0034-0.0106-0.0392-0.048-0.0706-0.0645
M-score -2.77-2.78-2.63-2.51-2.13-2.25-2.51-2.61-2.85-2.83
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