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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-2.81 (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.

Haemonetics Corp has a M-score of -2.81 suggests that the company is not a manipulator.

HAE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.56   Max: -2.01
Current: -2.81

-3.56
-2.01

During the past 13 years, the highest Beneish M-Score of Haemonetics Corp was -2.01. The lowest was -3.56. And the median was -2.78.


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 Haemonetics Corp 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 * 1.01+0.528 * 1.0057+0.404 * 1.0124+0.892 * 0.9531+0.115 * 1.001
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9444+4.679 * -0.0658-0.327 * 1.0086
=-2.81

* 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 $145.4 Mil.
Revenue was 219.693 + 213.413 + 226.478 + 231.827 = $891.4 Mil.
Gross Profit was 105.297 + 102.539 + 108.365 + 111.661 = $427.9 Mil.
Total Current Assets was $500.7 Mil.
Total Assets was $1,418.9 Mil.
Property, Plant and Equipment(Net PPE) was $328.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $89.4 Mil.
Selling, General & Admin. Expense(SGA) was $319.6 Mil.
Total Current Liabilities was $188.1 Mil.
Long-Term Debt was $387.7 Mil.
Net Income was 12.863 + -0.267 + -2.93 + 15.988 = $25.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 27.511 + 9.25 + 55.305 + 26.893 = $119.0 Mil.
Accounts Receivable was $151.1 Mil.
Revenue was 227.58 + 224.488 + 241.091 + 242.12 = $935.3 Mil.
Gross Profit was 108.114 + 106.278 + 115.441 + 121.629 = $451.5 Mil.
Total Current Assets was $557.0 Mil.
Total Assets was $1,474.5 Mil.
Property, Plant and Equipment(Net PPE) was $312.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $85.1 Mil.
Selling, General & Admin. Expense(SGA) was $355.0 Mil.
Total Current Liabilities was $165.1 Mil.
Long-Term Debt was $428.3 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)
=(145.411 / 891.411) / (151.055 / 935.279)
=0.16312453 / 0.16150796
=1.01

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)
=(102.539 / 935.279) / (105.297 / 891.411)
=0.48270302 / 0.47998286
=1.0057

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 - (500.724 + 328.233) / 1418.944) / (1 - (556.959 + 311.999) / 1474.545)
=0.41579301 / 0.41069415
=1.0124

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
=891.411 / 935.279
=0.9531

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))
=(85.109 / (85.109 + 311.999)) / (89.426 / (89.426 + 328.233))
=0.21432205 / 0.21411247
=1.001

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)
=(319.556 / 891.411) / (355.034 / 935.279)
=0.35848335 / 0.37960224
=0.9444

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)
=((387.715 + 188.105) / 1418.944) / ((428.253 + 165.056) / 1474.545)
=0.40580883 / 0.40236751
=1.0086

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
=(25.654 - 0 - 118.959) / 1418.944
=-0.0658

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.

Haemonetics Corp has a M-score of -2.81 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.

Haemonetics Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DSRI 0.98390.98651.140.8160.9671.02290.99041.02470.91970.9133
GMI 0.98181.03931.0130.96820.98580.99611.03471.05690.96181.0458
AQI 0.81031.43971.59820.91241.4550.94730.88831.70410.98420.9757
SGI 1.09421.07121.14861.15771.07951.04841.07561.22551.05220.97
DEPI 1.13611.07711.10081.00960.9560.92591.00121.16260.87751.0973
SGAI 0.93961.05451.0361.05250.99970.95121.0661.07481.07680.9414
LVGI 0.80910.83551.09980.88751.21290.73731.08492.97160.92290.9967
TATA -0.0838-0.0749-0.0454-0.084-0.0928-0.0516-0.054-0.0317-0.0689-0.0742
M-score -2.80-2.53-2.21-2.92-2.77-2.59-2.74-2.73-2.86-2.90

Haemonetics Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.49970.46921.57071.66871.57851.6390.91330.93111.011.0729
GMI 1.67731.59920.56310.58430.61140.63171.04581.02521.00571.0027
AQI 0.97281.01050.98420.97040.96160.97110.97570.99551.01240.9222
SGI 2.05071.90520.6160.60220.59040.58590.970.95320.95310.9654
DEPI 0.81690.80040.87750.99921.05141.09071.09731.05331.0010.9927
SGAI 1.05151.0411.07350.98551.01380.99670.94270.98350.94440.9406
LVGI 0.95730.91350.92290.93730.9650.99220.99670.98991.00861.048
TATA -0.0263-0.0363-0.0689-0.068-0.0756-0.0633-0.0742-0.0717-0.0658-0.13
M-score -1.80-2.01-2.86-2.75-2.87-2.75-2.90-2.90-2.81-3.09
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