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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.30 (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 -2.30 suggests that the company is not a manipulator.

EBIX' s Beneish M-Score Range Over the Past 10 Years
Min: -7.98   Max: 2.44
Current: -2.3

-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 -2.27.


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 * 0.9827+0.528 * 1.1292+0.404 * 1.0146+0.892 * 1.2512+0.115 * 1.3258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9157+4.679 * 0.0402-0.327 * 2.0574
=-2.30

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 20.232 + 19.036 + 18.336 + 16.547 = $74.2 Mil.
Non Operating Income was 1.137 + 0.33 + 0.892 + -0.043 = $2.3 Mil.
Cash Flow from Operations was 15.508 + 17.497 + -7.342 + 20.12 = $45.8 Mil.
Accounts Receivable was $38.4 Mil.
Revenue was 50.808 + 51.476 + 51.404 + 50.847 = $204.5 Mil.
Gross Profit was 40.533 + 41.512 + 41.792 + 40.761 = $164.6 Mil.
Total Current Assets was $94.3 Mil.
Total Assets was $564.5 Mil.
Property, Plant and Equipment(Net PPE) was $22.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.1 Mil.
Selling, General & Admin. Expense(SGA) was $51.5 Mil.
Total Current Liabilities was $35.6 Mil.
Long-Term Debt was $64.4 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)
=(47.166 / 255.911) / (38.361 / 204.535)
=0.18430626 / 0.18755225
=0.9827

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)
=(46.013 / 204.535) / (49.004 / 255.911)
=0.80474246 / 0.71267355
=1.1292

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 - (93.24 + 33.583) / 648.479) / (1 - (94.285 + 22.648) / 564.472)
=0.80443006 / 0.79284535
=1.0146

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
=255.911 / 204.535
=1.2512

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))
=(10.09 / (10.09 + 22.648)) / (10.171 / (10.171 + 33.583))
=0.30820453 / 0.23245875
=1.3258

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)
=(58.949 / 255.911) / (51.454 / 204.535)
=0.23034961 / 0.25156575
=0.9157

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)
=((186.506 + 49.68) / 648.479) / ((64.363 + 35.566) / 564.472)
=0.36421534 / 0.17703092
=2.0574

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
=(74.151 - 2.316 - 45.783) / 648.479
=0.0402

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 -2.30 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.98060.98871.02021.09161.08770.96571.00480.95460.99350.9827
GMI 0.98841.00561.0081.01261.00610.99861.03011.07381.11041.1292
AQI 0.99040.9920.96860.9770.98060.96091.00081.0320.99911.0146
SGI 1.18631.09761.02680.97810.96510.98391.04691.11361.17591.2512
DEPI 0.82240.84370.87750.90661.61331.72761.9242.14511.38091.3258
SGAI 1.00620.95281.01420.9791.06111.01490.92580.90.82260.9157
LVGI 0.91980.77140.82390.76090.59280.8941.49681.67342.23722.0574
TATA 0.01370.0240.01170.0135-0.00150.00430.00730.0410.04670.0402
M-score -2.27-2.23-2.35-2.28-2.25-2.41-2.43-2.25-2.38-2.30
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