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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.28 (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 -2.28 suggests that the company is not a manipulator.

EBIX' s Beneish M-Score Range Over the Past 10 Years
Min: -7.92   Max: 2.44
Current: -2.28

-7.92
2.44

During the past 13 years, the highest Beneish M-Score of Ebix Inc was 2.44. The lowest was -7.92. And the median was -2.27.


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 * 1.0464+0.528 * 1.0182+0.404 * 0.9176+0.892 * 1.2035+0.115 * 1.0489
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0412+4.679 * 0.0218-0.327 * 1.2949
=-2.28

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $56.5 Mil.
Revenue was 71.066 + 70.204 + 66.813 + 64.712 = $272.8 Mil.
Gross Profit was 51.464 + 53.76 + 49.004 + 46.013 = $200.2 Mil.
Total Current Assets was $139.3 Mil.
Total Assets was $697.4 Mil.
Property, Plant and Equipment(Net PPE) was $34.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.1 Mil.
Selling, General & Admin. Expense(SGA) was $64.8 Mil.
Total Current Liabilities was $44.2 Mil.
Long-Term Debt was $226.5 Mil.
Net Income was 22.159 + 21.929 + 20.232 + 19.036 = $83.4 Mil.
Non Operating Income was 0.469 + -0.354 + 1.137 + 0.33 = $1.6 Mil.
Cash Flow from Operations was 10.534 + 23.023 + 15.508 + 17.497 = $66.6 Mil.
Accounts Receivable was $44.9 Mil.
Revenue was 63.753 + 60.633 + 50.808 + 51.476 = $226.7 Mil.
Gross Profit was 44.268 + 43.096 + 40.533 + 41.512 = $169.4 Mil.
Total Current Assets was $83.0 Mil.
Total Assets was $613.2 Mil.
Property, Plant and Equipment(Net PPE) was $28.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.7 Mil.
Selling, General & Admin. Expense(SGA) was $51.7 Mil.
Total Current Liabilities was $47.8 Mil.
Long-Term Debt was $136.1 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)
=(56.503 / 272.795) / (44.869 / 226.67)
=0.20712623 / 0.19794856
=1.0464

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)
=(169.409 / 226.67) / (200.241 / 272.795)
=0.74738166 / 0.73403471
=1.0182

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 - (139.254 + 34.154) / 697.4) / (1 - (82.995 + 28.121) / 613.228)
=0.75135073 / 0.81880149
=0.9176

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
=272.795 / 226.67
=1.2035

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))
=(9.726 / (9.726 + 28.121)) / (11.083 / (11.083 + 34.154))
=0.25698206 / 0.24499856
=1.0489

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)
=(64.786 / 272.795) / (51.703 / 226.67)
=0.23748969 / 0.22809812
=1.0412

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)
=((226.498 + 44.236) / 697.4) / ((136.058 + 47.785) / 613.228)
=0.38820476 / 0.29979551
=1.2949

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
=(83.356 - 1.582 - 66.562) / 697.4
=0.0218

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 -2.28 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

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 0.0385-0.0189-0.00070.0133-0.0043-0.0118-0.00740.01170.00730.0427
M-score -1.36-2.52-1.59-1.66-2.28-2.36-2.40-2.35-2.43-2.18

Ebix Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.02021.09161.08770.96571.00480.95460.99350.98270.92651.0464
GMI 1.0081.01261.00610.99861.03011.07381.11041.12921.07121.0182
AQI 0.96860.9770.98060.96091.0051.0320.99911.01460.97010.9176
SGI 1.02680.97810.96510.98391.04691.11361.17591.25121.23871.2035
DEPI 0.87750.90661.61331.72761.9242.14511.38091.32581.18551.0489
SGAI 1.01420.9791.06111.01490.92580.90.82260.91571.00271.0412
LVGI 0.82390.76090.59280.8941.49681.67342.23722.05741.26741.2949
TATA 0.01170.0135-0.00150.00430.00730.0410.04670.04020.04270.0218
M-score -2.35-2.28-2.25-2.41-2.43-2.25-2.38-2.30-2.18-2.28
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