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Cyberonics Inc (NAS:CYBX)
Beneish M-Score
-3.98 (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 -3.98 suggests that the company is not a manipulator.

CYBX' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 7.02
Current: -3.98

-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 * 0.9205+0.528 * 1.0209+0.404 * 0.8367+0.892 * 1.0215+0.115 * 0.8287
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0704+4.679 * -0.1964-0.327 * 2.3336
=-3.98

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $45.6 Mil.
Revenue was 67.521 + 81.011 + 74.072 + 72.065 = $294.7 Mil.
Gross Profit was 57.985 + 71.578 + 66.477 + 65.525 = $261.6 Mil.
Total Current Assets was $282.4 Mil.
Total Assets was $357.6 Mil.
Property, Plant and Equipment(Net PPE) was $40.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.4 Mil.
Selling, General & Admin. Expense(SGA) was $135.9 Mil.
Total Current Liabilities was $71.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -25.091 + 12.419 + 10.515 + 16.541 = $14.4 Mil.
Non Operating Income was -0.109 + -2.068 + 0.112 + 0.203 = $-1.9 Mil.
Cash Flow from Operations was 30.719 + 18.738 + 16.174 + 20.873 = $86.5 Mil.
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 + 67.424 + 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.



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)
=(45.567 / 294.669) / (48.458 / 288.461)
=0.15463792 / 0.16798805
=0.9205

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)
=(71.578 / 288.461) / (57.985 / 294.669)
=0.90618836 / 0.887657
=1.0209

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 - (282.406 + 40.574) / 357.647) / (1 - (221.774 + 40.595) / 296.748)
=0.09693077 / 0.11585251
=0.8367

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
=294.669 / 288.461
=1.0215

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))
=(5.935 / (5.935 + 40.595)) / (7.381 / (7.381 + 40.574))
=0.12755212 / 0.15391513
=0.8287

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)
=(135.911 / 294.669) / (124.302 / 288.461)
=0.46123277 / 0.4309144
=1.0704

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 + 71.013) / 357.647) / ((0 + 25.249) / 296.748)
=0.19855612 / 0.08508566
=2.3336

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
=(14.384 - -1.862 - 86.504) / 357.647
=-0.1964

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 -3.98 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 0.802120.62150.9860.89030.624712.51621.15290.55330.78811.0921
SGI 0.93431.19331.0610.92561.18451.16831.13521.14721.16391.1089
DEPI 0.84911.78070.84490.85731.49571.22240.91451.42321.25841.1258
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 -3.305.06-3.66-3.22-2.713.56-2.24-3.38-2.77-2.13

Cyberonics Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Dec15
DSRI 0.99881.04331.15841.11511.07361.05760.96531.08020.92057.5681
GMI 1.01511.01461.0121.0071.00060.99720.99631.00611.02091.0301
AQI 0.939111.09211.09680.98350.95840.95050.8360.83675.4391
SGI 1.14691.1311.10891.08471.06831.06111.03381.05411.02150.7615
DEPI 1.38941.22751.12051.00980.96980.96140.86240.89440.82875.3844
SGAI 0.94280.96360.96691.01011.00691.0050.99110.94821.07041.0883
LVGI 0.91681.03040.92450.82310.90110.97860.97951.28852.33362.049
TATA -0.073-0.04740.0034-0.0106-0.0392-0.048-0.0706-0.0645-0.1964-0.0257
M-score -2.63-2.51-2.13-2.25-2.51-2.61-2.84-2.82-3.985.18
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