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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: 7.02
Current: -2.51

-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 -2.46.


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 * 1.0736+0.528 * 1.0005+0.404 * 0.9835+0.892 * 1.0683+0.115 * 0.9738
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0068+4.679 * -0.0392-0.327 * 0.9011
=-2.51

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $48.5 Mil.
Revenue was 73.417 + 72.004 + 74.849 + 68.191 = $288.5 Mil.
Gross Profit was 66.651 + 65.594 + 67.425 + 61.731 = $261.4 Mil.
Total Current Assets was $221.8 Mil.
Total Assets was $296.7 Mil.
Property, Plant and Equipment(Net PPE) was $40.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.9 Mil.
Selling, General & Admin. Expense(SGA) was $124.3 Mil.
Total Current Liabilities was $25.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 17.273 + 13.519 + 18.428 + 13.9 = $63.1 Mil.
Non Operating Income was -0.007 + 0.171 + -0.089 + -0.035 = $0.0 Mil.
Cash Flow from Operations was 24.531 + 18.098 + 16.448 + 15.631 = $74.7 Mil.
Accounts Receivable was $42.3 Mil.
Revenue was 70.101 + 68.872 + 68.344 + 62.7 = $270.0 Mil.
Gross Profit was 63.175 + 62.328 + 61.985 + 57.333 = $244.8 Mil.
Total Current Assets was $198.8 Mil.
Total Assets was $265.7 Mil.
Property, Plant and Equipment(Net PPE) was $35.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.0 Mil.
Selling, General & Admin. Expense(SGA) was $115.6 Mil.
Total Current Liabilities was $25.1 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)
=(48.458 / 288.461) / (42.25 / 270.017)
=0.16798805 / 0.15647163
=1.0736

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)
=(65.594 / 270.017) / (66.651 / 288.461)
=0.90668736 / 0.90619182
=1.0005

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 - (221.774 + 40.595) / 296.748) / (1 - (198.773 + 35.613) / 265.683)
=0.11585251 / 0.11779828
=0.9835

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
=288.461 / 270.017
=1.0683

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))
=(5.027 / (5.027 + 35.613)) / (5.907 / (5.907 + 40.595))
=0.12369587 / 0.12702679
=0.9738

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)
=(124.302 / 288.461) / (115.563 / 270.017)
=0.4309144 / 0.42798416
=1.0068

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 + 25.249) / 296.748) / ((0 + 25.087) / 265.683)
=0.08508566 / 0.09442456
=0.9011

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
=(63.12 - 0.04 - 74.708) / 296.748
=-0.0392

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

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

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.93671.06371.1551.15811.08170.99881.04331.15841.11511.0736
GMI 0.95120.96390.97970.99581.01181.01511.01461.0121.0071.0005
AQI 0.52440.53530.59640.78810.8670.939111.0921.09680.9835
SGI 1.14031.15091.14891.16391.16231.14691.13111.10891.08471.0683
DEPI 1.52720.89161.19911.25321.39551.38941.22751.12541.01410.9738
SGAI 0.97340.94810.93750.94250.9310.94280.96360.96691.01011.0068
LVGI 0.76330.77440.90981.01121.13460.91681.03040.92450.82310.9011
TATA -0.1789-0.1393-0.1179-0.1123-0.1034-0.073-0.04740.0034-0.0106-0.0392
M-score -3.33-3.08-2.87-2.77-2.78-2.63-2.51-2.13-2.25-2.51
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