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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.26 (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 -2.26 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: -2.26

-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 * 1.1435+0.528 * 0.9817+0.404 * 0.8812+0.892 * 1.1272+0.115 * 0.9435
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0118+4.679 * 0.0176-0.327 * 1.1335
=-2.26

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $60.8 Mil.
Revenue was 74.608 + 72.574 + 71.066 + 70.204 = $288.5 Mil.
Gross Profit was 52.183 + 51.995 + 51.464 + 53.76 = $209.4 Mil.
Total Current Assets was $185.4 Mil.
Total Assets was $761.1 Mil.
Property, Plant and Equipment(Net PPE) was $36.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.8 Mil.
Selling, General & Admin. Expense(SGA) was $67.2 Mil.
Total Current Liabilities was $71.3 Mil.
Long-Term Debt was $242.9 Mil.
Net Income was 24.067 + 22.992 + 22.159 + 21.929 = $91.1 Mil.
Non Operating Income was 1.74 + -0.195 + 0.469 + -0.354 = $1.7 Mil.
Cash Flow from Operations was 22.074 + 20.442 + 10.534 + 23.023 = $76.1 Mil.
Accounts Receivable was $47.2 Mil.
Revenue was 66.813 + 64.712 + 63.753 + 60.633 = $255.9 Mil.
Gross Profit was 49.004 + 46.013 + 44.268 + 43.096 = $182.4 Mil.
Total Current Assets was $93.2 Mil.
Total Assets was $648.5 Mil.
Property, Plant and Equipment(Net PPE) was $33.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.2 Mil.
Selling, General & Admin. Expense(SGA) was $58.9 Mil.
Total Current Liabilities was $49.7 Mil.
Long-Term Debt was $186.5 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)
=(60.795 / 288.452) / (47.166 / 255.911)
=0.21076297 / 0.18430626
=1.1435

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)
=(182.381 / 255.911) / (209.402 / 288.452)
=0.71267355 / 0.72595094
=0.9817

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 - (185.383 + 36.187) / 761.115) / (1 - (93.24 + 33.583) / 648.479)
=0.70888762 / 0.80443006
=0.8812

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
=288.452 / 255.911
=1.1272

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))
=(10.171 / (10.171 + 33.583)) / (11.83 / (11.83 + 36.187))
=0.23245875 / 0.24637108
=0.9435

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)
=(67.226 / 288.452) / (58.949 / 255.911)
=0.23305784 / 0.23034961
=1.0118

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)
=((242.892 + 71.321) / 761.115) / ((186.506 + 49.68) / 648.479)
=0.41283249 / 0.36421534
=1.1335

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
=(91.147 - 1.66 - 76.073) / 761.115
=0.0176

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 -2.26 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.08770.96571.00480.95460.99350.98270.92651.04640.95621.1435
GMI 1.00610.99861.03011.07381.11041.12921.07121.01820.98660.9817
AQI 0.98060.96091.0051.0320.99911.01460.97010.91760.91650.8812
SGI 0.96510.98391.04691.11361.17591.25121.23871.20351.16991.1272
DEPI 1.61331.72761.9242.14511.38091.32581.18551.04890.93810.9435
SGAI 1.06111.01490.92580.90.82260.91571.00271.04121.08221.0118
LVGI 0.59280.8941.49681.67342.23722.05741.26741.29491.29631.1335
TATA -0.00150.00430.00730.0410.04670.04020.04270.02180.02370.0176
M-score -2.25-2.41-2.43-2.25-2.38-2.30-2.18-2.28-2.42-2.26
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