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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.43 (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 -2.43 suggests that the company is not a manipulator.

EBIX' s 10-Year Beneish M-Score Range
Min: -6.17   Max: 2.44
Current: -2.43

-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 -2.38.


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 * 1.0048+0.528 * 1.0301+0.404 * 1.0008+0.892 * 1.0469+0.115 * 1.924
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9258+4.679 * 0.0073-0.327 * 1.4968
=-2.43

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $103.9 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.
Net Income was 16.547 + 18.015 + 13.579 + 15.417 = $63.6 Mil.
Non Operating Income was -0.043 + 0.618 + -0.475 + 0.335 = $0.4 Mil.
Cash Flow from Operations was 20.12 + 9.766 + 17.82 + 10.804 = $58.5 Mil.
Accounts Receivable was $39.1 Mil.
Revenue was 50.847 + 50.293 + 51.004 + 52.566 = $204.7 Mil.
Gross Profit was 40.761 + 40.157 + 40.646 + 42.675 = $164.2 Mil.
Total Current Assets was $102.3 Mil.
Total Assets was $545.4 Mil.
Property, Plant and Equipment(Net PPE) was $8.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $52.3 Mil.
Total Current Liabilities was $66.7 Mil.
Long-Term Debt was $43.0 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)
=(41.1 / 214.321) / (39.07 / 204.71)
=0.19176842 / 0.19085536
=1.0048

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)
=(40.533 / 204.71) / (43.096 / 214.321)
=0.80230082 / 0.77889241
=1.0301

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 - (103.861 + 24.661) / 634.311) / (1 - (102.349 + 8.528) / 545.442)
=0.7973833 / 0.79672082
=1.0008

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
=214.321 / 204.71
=1.0469

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))
=(10.107 / (10.107 + 8.528)) / (9.681 / (9.681 + 24.661))
=0.54236651 / 0.28189971
=1.924

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)
=(50.72 / 214.321) / (52.328 / 204.71)
=0.23665436 / 0.25562015
=0.9258

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)
=((121.058 + 69.786) / 634.311) / ((42.964 + 66.675) / 545.442)
=0.30086819 / 0.20100946
=1.4968

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
=(63.558 - 0.435 - 58.51) / 634.311
=0.0073

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 -2.43 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.89181.87570.75440.88231.28990.84140.93581.01531.02021.0048
GMI 0.96380.94580.95661.02881.03621.00790.96860.99071.0081.0301
AQI 1.02971.16850.63841.87961.00010.97641.06390.9990.96861.0008
SGI 1.2061.21381.46451.74491.30681.35321.27821.17991.02681.0469
DEPI 0.95631.04221.03390.93471.39550.76720.94890.96580.87751.924
SGAI 0.93690.88270.9050.85890.87681.031.02581.06711.01420.9258
LVGI 0.74461.37270.9621.15070.590.73341.03261.11470.82391.4968
TATA -0.04080.0385-0.0189-0.00070.0133-0.001-0.0102-0.00740.01170.0073
M-score -2.50-1.36-2.52-1.59-1.66-2.27-2.35-2.40-2.35-2.43

Ebix Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.00611.01531.1180.98060.98871.02021.09161.08770.96571.0048
GMI 0.98520.99070.9790.98841.00561.0081.01261.00610.99861.0301
AQI 0.99680.9991.010.99040.9920.96860.9770.98060.96091.0008
SGI 1.18361.17991.20471.18631.09761.02680.97810.96510.98391.0469
DEPI 1.00860.96580.89320.82240.84370.87750.90661.61331.72761.924
SGAI 1.13871.06711.13071.00620.95281.01420.9791.06111.01490.9258
LVGI 1.37941.11471.12970.91980.77140.82390.76090.59280.8941.4968
TATA -0.0178-0.0074-0.00550.01370.0240.01170.0135-0.00150.00430.0073
M-score -2.55-2.40-2.30-2.27-2.23-2.35-2.28-2.25-2.41-2.43
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