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Ebix Inc (NAS:EBIX)
Beneish M-Score
-2.41 (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 -2.41 suggests that the company is not a manipulator.

EBIX' s 10-Year Beneish M-Score Range
Min: -7.67   Max: 2.44
Current: -2.41

-7.67
2.44

During the past 13 years, the highest Beneish M-Score of Ebix Inc was 2.44. The lowest was -7.67. 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 * 0.9657+0.528 * 0.9986+0.404 * 0.9609+0.892 * 0.9839+0.115 * 1.7276
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0149+4.679 * 0.0043-0.327 * 0.894
=-2.41

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 18.015 + 13.579 + 15.417 + 15.245 = $62.3 Mil.
Non Operating Income was 0.618 + -0.475 + 0.335 + 1.656 = $2.1 Mil.
Cash Flow from Operations was 9.766 + 17.82 + 10.804 + 19.286 = $57.7 Mil.
Accounts Receivable was $40.4 Mil.
Revenue was 50.293 + 51.004 + 52.566 + 54.023 = $207.9 Mil.
Gross Profit was 40.157 + 40.646 + 42.675 + 43.576 = $167.1 Mil.
Total Current Assets was $84.5 Mil.
Total Assets was $533.4 Mil.
Property, Plant and Equipment(Net PPE) was $8.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.0 Mil.
Selling, General & Admin. Expense(SGA) was $51.5 Mil.
Total Current Liabilities was $59.8 Mil.
Long-Term Debt was $45.8 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)
=(38.361 / 204.535) / (40.374 / 207.886)
=0.18755225 / 0.19421221
=0.9657

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)
=(41.512 / 207.886) / (40.533 / 204.535)
=0.80358466 / 0.80474246
=0.9986

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 - (94.285 + 22.648) / 564.472) / (1 - (84.475 + 8.819) / 533.36)
=0.79284535 / 0.8250825
=0.9609

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
=204.535 / 207.886
=0.9839

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))
=(10.043 / (10.043 + 8.819)) / (10.09 / (10.09 + 22.648))
=0.53244619 / 0.30820453
=1.7276

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)
=(51.454 / 204.535) / (51.53 / 207.886)
=0.25156575 / 0.24787624
=1.0149

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)
=((64.363 + 35.566) / 564.472) / ((45.788 + 59.825) / 533.36)
=0.17703092 / 0.19801447
=0.894

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
=(62.256 - 2.134 - 57.676) / 564.472
=0.0043

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 -2.41 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.3160.89181.87570.75440.88231.28990.84140.93581.01531.0202
GMI 0.97390.96380.94580.95661.02881.03621.00790.96860.99071.008
AQI 11.90321.02971.16850.63841.87961.00010.97641.06390.9990.9724
SGI 1.38451.2061.21381.46451.74491.30681.35321.27821.17991.0268
DEPI 0.54750.95631.04221.03390.93471.39550.76720.94890.96580.8775
SGAI 0.82020.93690.88270.9050.85890.87681.031.02581.06711.0142
LVGI 0.98170.74461.37270.9621.15070.590.73341.03261.11470.8114
TATA -0.0197-0.04080.0385-0.0189-0.00070.0133-0.0043-0.0118-0.00740.0115
M-score 2.44-2.50-1.36-2.52-1.59-1.66-2.28-2.36-2.40-2.35

Ebix Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.85261.00611.01531.1180.98060.98871.02021.09161.08770.9657
GMI 0.98950.98520.99070.9790.98841.00561.0081.01261.00610.9986
AQI 1.03440.99680.9991.010.99040.9920.97240.9770.98060.9609
SGI 1.18251.18361.17991.20471.18631.09761.02680.97810.96510.9839
DEPI 1.01151.00860.96580.89320.82240.84370.87750.90661.61331.7276
SGAI 1.06641.13871.06711.13071.00620.95281.01420.9791.06111.0149
LVGI 1.67191.37941.11471.12970.91980.77140.81140.76090.59280.894
TATA -0.0286-0.0189-0.0074-0.00550.01370.0240.01150.0135-0.00150.0043
M-score -2.81-2.56-2.40-2.30-2.27-2.23-2.35-2.28-2.25-2.41
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