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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.42 (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 -2.42 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: -2.42

-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 -2.28.


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 * 0.9562+0.528 * 0.9866+0.404 * 0.9165+0.892 * 1.1699+0.115 * 0.9381
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0822+4.679 * 0.0237-0.327 * 1.2963
=-2.42

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $52.8 Mil.
Revenue was 72.574 + 71.066 + 70.204 + 66.813 = $280.7 Mil.
Gross Profit was 51.995 + 51.464 + 53.76 + 49.004 = $206.2 Mil.
Total Current Assets was $145.4 Mil.
Total Assets was $707.9 Mil.
Property, Plant and Equipment(Net PPE) was $34.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.5 Mil.
Selling, General & Admin. Expense(SGA) was $66.6 Mil.
Total Current Liabilities was $58.6 Mil.
Long-Term Debt was $231.0 Mil.
Net Income was 22.992 + 22.159 + 21.929 + 20.232 = $87.3 Mil.
Non Operating Income was -0.195 + 0.469 + -0.354 + 1.137 = $1.1 Mil.
Cash Flow from Operations was 20.442 + 10.534 + 23.023 + 15.508 = $69.5 Mil.
Accounts Receivable was $47.2 Mil.
Revenue was 64.712 + 63.753 + 60.633 + 50.808 = $239.9 Mil.
Gross Profit was 46.013 + 44.268 + 43.096 + 40.533 = $173.9 Mil.
Total Current Assets was $87.7 Mil.
Total Assets was $644.3 Mil.
Property, Plant and Equipment(Net PPE) was $32.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.9 Mil.
Selling, General & Admin. Expense(SGA) was $52.6 Mil.
Total Current Liabilities was $52.8 Mil.
Long-Term Debt was $150.5 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)
=(52.816 / 280.657) / (47.217 / 239.906)
=0.188187 / 0.19681459
=0.9562

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)
=(173.91 / 239.906) / (206.223 / 280.657)
=0.72490892 / 0.73478659
=0.9866

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 - (145.396 + 34.507) / 707.933) / (1 - (87.662 + 32.25) / 644.254)
=0.74587567 / 0.81387465
=0.9165

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
=280.657 / 239.906
=1.1699

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))
=(9.855 / (9.855 + 32.25)) / (11.471 / (11.471 + 34.507))
=0.23405771 / 0.24948889
=0.9381

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)
=(66.57 / 280.657) / (52.583 / 239.906)
=0.23719344 / 0.21918168
=1.0822

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)
=((231.031 + 58.622) / 707.933) / ((150.508 + 52.835) / 644.254)
=0.40915313 / 0.31562551
=1.2963

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
=(87.312 - 1.057 - 69.507) / 707.933
=0.0237

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 -2.42 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 0.0385-0.0189-0.00070.0133-0.001-0.0102-0.00740.01170.00730.0427
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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.09161.08770.96571.00480.95460.99350.98270.92651.04640.9562
GMI 1.01261.00610.99861.03011.07381.11041.12921.07121.01820.9866
AQI 0.9770.98060.96091.0051.0320.99911.01460.97010.91760.9165
SGI 0.97810.96510.98391.04691.11361.17591.25121.23871.20351.1699
DEPI 0.90661.61331.72761.9242.14511.38091.32581.18551.04890.9381
SGAI 0.9791.06111.01490.92580.90.82260.91571.00271.04121.0822
LVGI 0.76090.59280.8941.49681.67342.23722.05741.26741.29491.2963
TATA 0.0135-0.00150.00430.00730.0410.04670.04020.04270.02180.0237
M-score -2.28-2.25-2.41-2.43-2.25-2.38-2.30-2.18-2.28-2.42
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