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Cyberonics Inc (NAS:CYBX)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

CYBX' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 7.02
Current: -2.61

-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 * 1.0576+0.528 * 0.9972+0.404 * 0.9584+0.892 * 1.0611+0.115 * 0.9654
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.005+4.679 * -0.048-0.327 * 0.9786
=-2.61

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $47.3 Mil.
Revenue was 72.065 + 73.417 + 72.004 + 74.849 = $292.3 Mil.
Gross Profit was 65.525 + 66.651 + 65.594 + 67.425 = $265.2 Mil.
Total Current Assets was $225.0 Mil.
Total Assets was $301.4 Mil.
Property, Plant and Equipment(Net PPE) was $40.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.9 Mil.
Selling, General & Admin. Expense(SGA) was $126.2 Mil.
Total Current Liabilities was $26.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 16.541 + 17.273 + 13.519 + 18.428 = $65.8 Mil.
Non Operating Income was 0.203 + -0.007 + 0.171 + -0.089 = $0.3 Mil.
Cash Flow from Operations was 20.873 + 24.531 + 18.098 + 16.448 = $80.0 Mil.
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.



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)
=(47.26 / 292.335) / (42.115 / 275.508)
=0.16166384 / 0.15286307
=1.0576

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)
=(66.651 / 275.508) / (65.525 / 292.335)
=0.9045799 / 0.9071613
=0.9972

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 - (225.02 + 40.86) / 301.387) / (1 - (197.717 + 38.376) / 269.182)
=0.11781198 / 0.12292427
=0.9584

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
=292.335 / 275.508
=1.0611

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))
=(5.347 / (5.347 + 38.376)) / (5.927 / (5.927 + 40.86))
=0.12229261 / 0.12668049
=0.9654

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)
=(126.204 / 292.335) / (118.343 / 275.508)
=0.4317102 / 0.4295447
=1.005

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 + 26.285) / 301.387) / ((0 + 23.989) / 269.182)
=0.08721345 / 0.08911814
=0.9786

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
=(65.761 - 0.278 - 79.95) / 301.387
=-0.048

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 -2.61 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

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.06371.1551.15811.08170.99881.04331.15841.11511.07361.0576
GMI 0.96390.97970.99581.01181.01511.01461.0121.0071.00050.9972
AQI 0.53530.59640.78810.8670.939111.0921.09680.98350.9584
SGI 1.15091.14891.16391.16231.14691.13111.10891.08471.06831.0611
DEPI 0.89161.19911.25321.39551.38941.22751.12541.01410.97380.9654
SGAI 0.94810.93750.94250.9310.94280.96360.96691.01011.00681.005
LVGI 0.77440.90981.01121.13460.91681.03040.92450.82310.90110.9786
TATA -0.1393-0.1179-0.1123-0.1034-0.073-0.04740.0034-0.0106-0.0392-0.048
M-score -3.08-2.87-2.77-2.78-2.63-2.51-2.13-2.25-2.51-2.61
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