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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

HAE' s 10-Year Beneish M-Score Range
Min: -3.4   Max: -2.21
Current: -2.9

-3.4
-2.21

During the past 13 years, the highest Beneish M-Score of Haemonetics Corp was -2.21. The lowest was -3.40. And the median was -2.76.


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 * 0.9133+0.528 * 1.0458+0.404 * 0.9757+0.892 * 0.97+0.115 * 1.0973
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9414+4.679 * -0.0742-0.327 * 0.9967
=-2.90

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $145.8 Mil.
Revenue was 226.478 + 231.827 + 227.58 + 224.488 = $910.4 Mil.
Gross Profit was 108.365 + 111.661 + 108.114 + 106.278 = $434.4 Mil.
Total Current Assets was $570.3 Mil.
Total Assets was $1,485.4 Mil.
Property, Plant and Equipment(Net PPE) was $321.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $86.1 Mil.
Selling, General & Admin. Expense(SGA) was $334.3 Mil.
Total Current Liabilities was $189.1 Mil.
Long-Term Debt was $406.4 Mil.
Net Income was -2.93 + 15.988 + 7.487 + -3.649 = $16.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 55.305 + 26.893 + 31.242 + 13.738 = $127.2 Mil.
Accounts Receivable was $164.6 Mil.
Revenue was 241.091 + 242.12 + 235.755 + 219.543 = $938.5 Mil.
Gross Profit was 115.441 + 121.629 + 119.884 + 111.412 = $468.4 Mil.
Total Current Assets was $623.0 Mil.
Total Assets was $1,514.2 Mil.
Property, Plant and Equipment(Net PPE) was $271.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $81.7 Mil.
Selling, General & Admin. Expense(SGA) was $366.0 Mil.
Total Current Liabilities was $216.9 Mil.
Long-Term Debt was $392.1 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)
=(145.827 / 910.373) / (164.603 / 938.509)
=0.16018379 / 0.17538777
=0.9133

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)
=(111.661 / 938.509) / (108.365 / 910.373)
=0.49905329 / 0.47718682
=1.0458

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 - (570.277 + 321.948) / 1485.417) / (1 - (622.976 + 271.437) / 1514.178)
=0.39934375 / 0.40930789
=0.9757

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
=910.373 / 938.509
=0.97

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))
=(81.74 / (81.74 + 271.437)) / (86.053 / (86.053 + 321.948))
=0.23144202 / 0.2109137
=1.0973

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)
=(334.25 / 910.373) / (366.022 / 938.509)
=0.3671572 / 0.39000372
=0.9414

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)
=((406.369 + 189.092) / 1485.417) / ((392.057 + 216.928) / 1514.178)
=0.40087127 / 0.40218851
=0.9967

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
=(16.896 - 0 - 127.178) / 1485.417
=-0.0742

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 -2.90 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.12691.02470.97030.83090.78190.91970.9960.94920.98340.9133
GMI 1.0561.05691.05081.00870.95960.96180.97891.01681.05281.0458
AQI 1.57971.70411.79180.97281.01050.98420.97040.96160.97110.9757
SGI 1.16521.22551.27441.23321.14321.05221.0090.98180.97640.97
DEPI 1.27371.16261.02910.81690.80040.87750.99921.05141.09071.0973
SGAI 1.1211.07481.10751.06921.0641.07680.96250.9970.97580.9414
LVGI 3.30182.97163.20270.95730.91350.92290.93730.9650.99220.9967
TATA -0.0327-0.0319-0.0519-0.0425-0.0525-0.0689-0.068-0.0756-0.0633-0.0742
M-score -2.85-2.73-2.89-2.65-2.82-2.86-2.79-2.89-2.78-2.90
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