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Cyberonics Inc (NAS:CYBX)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

CYBX' s 10-Year Beneish M-Score Range
Min: -3.66   Max: 7.02
Current: -2.85

-3.66
7.02

During the past 13 years, the highest Beneish M-Score of Cyberonics Inc was 7.02. The lowest was -3.66. And the median was -2.35.


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 * 0.9653+0.528 * 0.9963+0.404 * 0.9505+0.892 * 1.0338+0.115 * 0.8133
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9911+4.679 * -0.0706-0.327 * 0.9795
=-2.85

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $50.6 Mil.
Revenue was 74.072 + 72.065 + 73.417 + 72.004 = $291.6 Mil.
Gross Profit was 66.477 + 65.525 + 66.651 + 65.594 = $264.2 Mil.
Total Current Assets was $240.7 Mil.
Total Assets was $315.9 Mil.
Property, Plant and Equipment(Net PPE) was $40.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.3 Mil.
Selling, General & Admin. Expense(SGA) was $123.6 Mil.
Total Current Liabilities was $31.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 10.514 + 16.541 + 17.273 + 13.519 = $57.8 Mil.
Non Operating Income was 0.112 + 0.203 + -0.007 + 0.171 = $0.5 Mil.
Cash Flow from Operations was 16.173 + 20.873 + 24.531 + 18.098 = $79.7 Mil.
Accounts Receivable was $50.7 Mil.
Revenue was 74.849 + 68.191 + 70.101 + 68.872 = $282.0 Mil.
Gross Profit was 67.425 + 61.731 + 63.175 + 62.328 = $254.7 Mil.
Total Current Assets was $220.4 Mil.
Total Assets was $294.2 Mil.
Property, Plant and Equipment(Net PPE) was $39.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.6 Mil.
Selling, General & Admin. Expense(SGA) was $120.6 Mil.
Total Current Liabilities was $29.9 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)
=(50.569 / 291.558) / (50.674 / 282.013)
=0.17344405 / 0.17968675
=0.9653

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)
=(65.525 / 282.013) / (66.477 / 291.558)
=0.90300447 / 0.90632739
=0.9963

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 - (240.721 + 40.287) / 315.944) / (1 - (220.431 + 39.535) / 294.191)
=0.11057656 / 0.11633599
=0.9505

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
=291.558 / 282.013
=1.0338

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))
=(5.603 / (5.603 + 39.535)) / (7.256 / (7.256 + 40.287))
=0.12413044 / 0.15261973
=0.8133

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)
=(123.62 / 291.558) / (120.641 / 282.013)
=0.42399797 / 0.42778524
=0.9911

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 + 31.449) / 315.944) / ((0 + 29.898) / 294.191)
=0.09953979 / 0.10162785
=0.9795

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
=(57.847 - 0.479 - 79.675) / 315.944
=-0.0706

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 -2.85 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 1.78070.84490.85731.49571.22240.91451.42321.25841.12580.8133
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 5.06-3.66-3.22-2.713.56-2.24-3.38-2.77-2.13-2.85

Cyberonics Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.1551.15811.08170.99881.04331.15841.11511.07361.05760.9653
GMI 0.97970.99581.01181.01511.01461.0121.0071.00050.99720.9963
AQI 0.59640.78810.8670.939111.0921.09680.98350.95840.9505
SGI 1.14891.16391.16231.14691.13111.10891.08471.06831.06111.0338
DEPI 0.71241.25871.4471.48151.4661.12541.01410.97380.96540.8133
SGAI 0.93750.94250.9310.94280.96360.96691.01011.00681.0050.9911
LVGI 0.90981.01121.13460.91681.03040.92450.82310.90110.97860.9795
TATA -0.1179-0.1174-0.1084-0.078-0.05230.0034-0.0106-0.0392-0.048-0.0706
M-score -2.92-2.79-2.80-2.64-2.51-2.13-2.25-2.51-2.61-2.85
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