Switch to:
Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.18 (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.

Ebix Inc has a M-score of -2.18 signals that the company is a manipulator.

EBIX' s Beneish M-Score Range Over the Past 10 Years
Min: -6.17   Max: 2.44
Current: -2.18

-6.17
2.44

During the past 13 years, the highest Beneish M-Score of Ebix Inc was 2.44. The lowest was -6.17. 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 Ebix 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 * 0.9265+0.528 * 1.0712+0.404 * 0.9701+0.892 * 1.2387+0.115 * 1.1855
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0027+4.679 * 0.0427-0.327 * 1.2674
=-2.18

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $47.2 Mil.
Revenue was 70.204 + 66.813 + 64.712 + 63.753 = $265.5 Mil.
Gross Profit was 53.76 + 49.004 + 46.013 + 44.268 = $193.0 Mil.
Total Current Assets was $116.8 Mil.
Total Assets was $676.0 Mil.
Property, Plant and Equipment(Net PPE) was $34.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.6 Mil.
Selling, General & Admin. Expense(SGA) was $63.0 Mil.
Total Current Liabilities was $51.3 Mil.
Long-Term Debt was $206.5 Mil.
Net Income was 21.929 + 20.232 + 19.036 + 18.336 = $79.5 Mil.
Non Operating Income was -0.354 + 1.137 + 0.33 + 0.892 = $2.0 Mil.
Cash Flow from Operations was 23.023 + 15.508 + 17.497 + -7.342 = $48.7 Mil.
Accounts Receivable was $41.1 Mil.
Revenue was 60.633 + 50.808 + 51.476 + 51.404 = $214.3 Mil.
Gross Profit was 43.096 + 40.533 + 41.512 + 41.792 = $166.9 Mil.
Total Current Assets was $101.7 Mil.
Total Assets was $634.3 Mil.
Property, Plant and Equipment(Net PPE) was $24.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.7 Mil.
Selling, General & Admin. Expense(SGA) was $50.7 Mil.
Total Current Liabilities was $69.8 Mil.
Long-Term Debt was $121.1 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)
=(47.171 / 265.482) / (41.1 / 214.321)
=0.1776806 / 0.19176842
=0.9265

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)
=(49.004 / 214.321) / (53.76 / 265.482)
=0.77889241 / 0.72714911
=1.0712

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 - (116.83 + 34.088) / 675.989) / (1 - (101.748 + 24.661) / 634.311)
=0.77674489 / 0.80071448
=0.9701

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
=265.482 / 214.321
=1.2387

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))
=(9.681 / (9.681 + 24.661)) / (10.634 / (10.634 + 34.088))
=0.28189971 / 0.23778006
=1.1855

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)
=(62.995 / 265.482) / (50.72 / 214.321)
=0.23728539 / 0.23665436
=1.0027

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)
=((206.5 + 51.266) / 675.989) / ((121.058 + 69.786) / 634.311)
=0.38131686 / 0.30086819
=1.2674

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
=(79.533 - 2.005 - 48.686) / 675.989
=0.0427

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.

Ebix Inc has a M-score of -2.18 signals that the company is likely to 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.

Ebix Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.87570.75440.88231.28990.84140.93581.01531.02021.00480.9265
GMI 0.94580.95661.02881.03621.00790.96860.99071.0081.03011.0712
AQI 1.16850.63841.87961.00010.97641.06390.9990.96861.0050.9701
SGI 1.21381.46451.74491.30681.35321.27821.17991.02681.04691.2387
DEPI 1.04221.03390.93471.39550.76720.94890.96580.87751.9241.1855
SGAI 0.88270.9050.85890.87681.031.02581.06711.01420.92581.0027
LVGI 1.37270.9621.15070.590.73341.03261.11470.82391.49681.2674
TATA 0.0385-0.0189-0.00070.0133-0.001-0.0102-0.00740.01170.00730.0427
M-score -1.36-2.52-1.59-1.66-2.27-2.35-2.40-2.35-2.43-2.18

Ebix Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.98871.02021.09161.08770.96571.00480.95460.99350.98270.9265
GMI 1.00561.0081.01261.00610.99861.03011.07381.11041.12921.0712
AQI 0.9920.96860.9770.98060.96091.0051.0320.99911.01460.9701
SGI 1.09761.02680.97810.96510.98391.04691.11361.17591.25121.2387
DEPI 0.84370.87750.90661.61331.72761.9242.14511.38091.32581.1855
SGAI 0.95281.01420.9791.06111.01490.92580.90.82260.91571.0027
LVGI 0.77140.82390.76090.59280.8941.49681.67342.23722.05741.2674
TATA 0.0240.01170.0135-0.00150.00430.00730.0410.04670.04020.0427
M-score -2.23-2.35-2.28-2.25-2.41-2.43-2.25-2.38-2.30-2.18
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK