Wright Medical Group (FRA:WM3) Beneish M-Score : -2.74 (As of May. 16, 2024)

View and export this data going back to . Start your Free Trial

What is Wright Medical Group Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Wright Medical Group's Beneish M-Score or its related term are showing as below:

FRA:WM3' s Beneish M-Score Range Over the Past 10 Years
Min: -4.44 Med: -2.69 Max: -1.21
Current: -2.74

During the past 13 years, the highest Beneish M-Score of Wright Medical Group was -1.21. The lowest was -4.44. And the median was -2.69.

Wright Medical Group Beneish M-Score Historical Data

The historical data trend for Wright Medical Group's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wright Medical Group Beneish M-Score Chart

Wright Medical Group Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Beneish M-Score

Get a 7-Day Free Trial

-2.62

-2.83

-3.24

-3.30

-2.48

Wright Medical Group Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Beneish M-Score	Get a 7-Day Free Trial															-3.72	-2.50	-2.48	-2.68	-2.74

Competitive Comparison of Wright Medical Group's Beneish M-Score

For the Medical Devices subindustry, Wright Medical Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Wright Medical Group's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Wright Medical Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Wright Medical Group's Beneish M-Score falls into.

Wright Medical Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Wright Medical Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8346

0.528 * 0.9856

0.404 * 0.8384

0.892 * 1.3512

0.115 * 1.1468

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9998

4.679 * -0.035423

0.327 * 1.6097

-2.74

This Year (Jun15) TTM:

Last Year (Jun14) TTM:

Total Receivables was €45.6 Mil.
Revenue was 71.654 + 72.011 + 67.551 + 55.334 = €266.6 Mil.
Gross Profit was 52.377 + 54.34 + 52.064 + 42.373 = €201.2 Mil.
Total Current Assets was €585.1 Mil.
Total Assets was €1,044.1 Mil.
Property, Plant and Equipment(Net PPE) was €107.4 Mil.
Depreciation, Depletion and Amortization(DDA) was €26.2 Mil.
Selling, General, & Admin. Expense(SGA) was €268.0 Mil.
Total Current Liabilities was €185.4 Mil.
Long-Term Debt & Capital Lease Obligation was €498.1 Mil.
Net Income was -39.485 + -45.967 + -90.208 + -47.962 = €-223.6 Mil.
Non Operating Income was -7.264 + -4.908 + -60.533 + -16.63 = €-89.3 Mil.
Cash Flow from Operations was -22.947 + -23.327 + -24.208 + -26.82 = €-97.3 Mil.

Total Receivables was €40.4 Mil.
Revenue was 53.26 + 51.378 + 49.512 + 43.115 = €197.3 Mil.
Gross Profit was 38.535 + 38.785 + 36.793 + 32.616 = €146.7 Mil.
Total Current Assets was €374.7 Mil.
Total Assets was €735.9 Mil.
Property, Plant and Equipment(Net PPE) was €65.7 Mil.
Depreciation, Depletion and Amortization(DDA) was €19.0 Mil.
Selling, General, & Admin. Expense(SGA) was €198.4 Mil.
Total Current Liabilities was €96.4 Mil.
Long-Term Debt & Capital Lease Obligation was €202.8 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(45.561 / 266.55)	/	(40.401 / 197.265)
	=	0.170929	/	0.204806
	=	0.8346

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)
	=	(146.729 / 197.265)	/	(201.154 / 266.55)
	=	0.743817	/	0.754658
	=	0.9856

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (585.086 + 107.439) / 1044.09)	/	(1 - (374.673 + 65.696) / 735.921)
	=	0.336719	/	0.401608
	=	0.8384

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	266.55	/	197.265
	=	1.3512

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(19.027 / (19.027 + 65.696))	/	(26.164 / (26.164 + 107.439))
	=	0.224579	/	0.195834
	=	1.1468

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(267.983 / 266.55)	/	(198.359 / 197.265)
	=	1.005376	/	1.005546
	=	0.9998

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((498.089 + 185.414) / 1044.09)	/	((202.846 + 96.447) / 735.921)
	=	0.65464	/	0.406692
	=	1.6097

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
	=	(-223.622 - -89.335	-	-97.302)	/	1044.09
	=	-0.035423

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Wright Medical Group has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

Wright Medical Group Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Wright Medical Group's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Wright Medical Group (FRA:WM3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Wright Medical Group Inc (FRA:WM3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.wmt.com

Wright Medical Group Inc, through Wright Medical Technology, Inc. and other operating subsidiaries, is a specialty orthopaedic company, that provides extremity and biologic solutions that enable clinicians to alleviate pain and restore their patients' lifestyles. The Company provides surgical solutions for the foot and ankle market and markets its products in over 60 countries. Its business includes products that are used in foot and ankle repair, upper extremity products, and biologics products, which are used to replace damaged or diseased bone, to stimulate bone growth and to provide other biological solutions for surgeons and their patients. Extremity hardware includes implants and other devices to replace or reconstruct injured or diseased joints and bones of the foot, ankle, hand, wrist, fingers, toes, elbow and shoulder, which it generally refer to as either foot and ankle or upper extremity products. The Company's manufacturing and warehousing operations are located in Arlington, Tennessee. Outside the U.S., The Company has distribution and administrative facilities in Amsterdam, the Netherlands, and sales and distribution offices in Canada, Australia, and Europe. The Company operates its continuing operations as one reportable segment and offer products in extremity reconstruction and biologics. The Company's products include CHARLOTTE, CLAW II, DARCO, EVOLVE, MICRONAIL, GRAFTJACKET, OSTEOSET. Its competitors include major companies in the orthopaedic and biologics industries, as well as academic institutions and other public and private research organizations that continue to conduct research, seek patent protection and establish arrangements for commercializing products. The Company's products are strictly regulated by the FDA under the Food, Drug, and Cosmetic Act. Some of its products are also regulated by state agencies.

Wright Medical Group (FRA:WM3) Headlines

No Headlines