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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.25 (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 -2.25 suggests that the company is not a manipulator.

EBIX' s 10-Year Beneish M-Score Range
Min: -7.98   Max: 2.44
Current: -2.25

-7.98
2.44

During the past 13 years, the highest Beneish M-Score of Ebix Inc was 2.44. The lowest was -7.98. And the median was -2.26.


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 * 1.0877+0.528 * 1.0061+0.404 * 0.9806+0.892 * 0.9651+0.115 * 1.6133
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0611+4.679 * -0.0015-0.327 * 0.5928
=-2.25

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $40.4 Mil.
Revenue was 51.476 + 51.404 + 50.847 + 50.293 = $204.0 Mil.
Gross Profit was 41.512 + 41.792 + 40.761 + 40.157 = $164.2 Mil.
Total Current Assets was $81.1 Mil.
Total Assets was $551.5 Mil.
Property, Plant and Equipment(Net PPE) was $21.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $54.4 Mil.
Total Current Liabilities was $68.5 Mil.
Long-Term Debt was $9.3 Mil.
Net Income was 13.579 + 15.417 + 15.245 + 13.143 = $57.4 Mil.
Non Operating Income was -0.475 + 0.335 + 1.656 + -4.166 = $-2.7 Mil.
Cash Flow from Operations was 17.82 + 10.804 + 19.286 + 12.937 = $60.8 Mil.
Accounts Receivable was $38.5 Mil.
Revenue was 51.004 + 52.566 + 54.023 + 53.804 = $211.4 Mil.
Gross Profit was 40.646 + 42.675 + 43.576 + 44.304 = $171.2 Mil.
Total Current Assets was $81.8 Mil.
Total Assets was $538.0 Mil.
Property, Plant and Equipment(Net PPE) was $9.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $53.1 Mil.
Total Current Liabilities was $69.5 Mil.
Long-Term Debt was $58.6 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)
=(40.416 / 204.02) / (38.5 / 211.397)
=0.19809823 / 0.18212179
=1.0877

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)
=(41.792 / 211.397) / (41.512 / 204.02)
=0.80985539 / 0.80493089
=1.0061

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 - (81.097 + 21.148) / 551.454) / (1 - (81.849 + 9.226) / 538.044)
=0.81459016 / 0.83072946
=0.9806

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
=204.02 / 211.397
=0.9651

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))
=(10.053 / (10.053 + 9.226)) / (10.1 / (10.1 + 21.148))
=0.52144821 / 0.32322069
=1.6133

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)
=(54.359 / 204.02) / (53.083 / 211.397)
=0.26643956 / 0.25110574
=1.0611

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)
=((9.284 + 68.515) / 551.454) / ((58.59 + 69.463) / 538.044)
=0.14107976 / 0.23799726
=0.5928

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
=(57.384 - -2.65 - 60.847) / 551.454
=-0.0015

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 -2.25 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.

Ebix Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.3160.89181.87570.75440.88231.28990.84140.93581.01531.0202
GMI 0.97390.96380.94580.95661.02881.03621.00790.96860.99071.008
AQI 11.90321.02971.16850.63841.87961.00010.97641.06390.9990.9724
SGI 1.38451.2061.21381.46451.74491.30681.35321.27821.17991.0268
DEPI 0.54750.95631.04221.03390.93471.39550.76720.94890.96580.8775
SGAI 0.82020.93690.88270.9050.85890.87681.031.02581.06711.0142
LVGI 0.98170.74461.37270.9621.15070.590.73341.03261.11470.8114
TATA -0.0197-0.04080.0385-0.0189-0.00070.0133-0.001-0.0102-0.00740.0115
M-score 2.44-2.50-1.36-2.52-1.59-1.66-2.27-2.35-2.40-2.35

Ebix Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.67940.85261.00611.01531.1180.98060.98871.02021.09161.0877
GMI 0.99020.98950.98520.99070.9790.98841.00561.0081.01261.0061
AQI 1.02931.03440.99680.9991.010.99040.9920.97240.9770.9806
SGI 1.22831.18251.18361.17991.20471.18631.09761.02680.97810.9651
DEPI 0.9211.01151.00860.96580.89320.82240.84370.87750.90661.6133
SGAI 0.94531.06641.13871.06711.13071.00620.95281.01420.9791.0611
LVGI 1.21161.67191.37941.11471.12970.91980.77140.81140.76090.5928
TATA -0.0133-0.0275-0.0178-0.0074-0.00550.01370.0240.01150.0135-0.0015
M-score -2.70-2.80-2.55-2.40-2.30-2.27-2.23-2.35-2.28-2.25
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