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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-3.09 (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 -3.09 suggests that the company is not a manipulator.

HAE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.82   Max: -1.96
Current: -3.09

-3.82
-1.96

During the past 13 years, the highest Beneish M-Score of Haemonetics Corp was -1.96. The lowest was -3.82. And the median was -2.74.


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 * 1.0729+0.528 * 1.0027+0.404 * 0.9222+0.892 * 0.9654+0.115 * 0.9927
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9406+4.679 * -0.13-0.327 * 1.048
=-3.09

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $148.8 Mil.
Revenue was 233.384 + 219.693 + 213.413 + 226.478 = $893.0 Mil.
Gross Profit was 108.855 + 105.297 + 102.539 + 108.365 = $425.1 Mil.
Total Current Assets was $501.4 Mil.
Total Assets was $1,336.4 Mil.
Property, Plant and Equipment(Net PPE) was $332.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $89.9 Mil.
Selling, General & Admin. Expense(SGA) was $316.0 Mil.
Total Current Liabilities was $175.3 Mil.
Long-Term Debt was $380.8 Mil.
Net Income was -59.44 + 12.863 + -0.267 + -2.93 = $-49.8 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 31.851 + 27.511 + 9.25 + 55.305 = $123.9 Mil.
Accounts Receivable was $143.6 Mil.
Revenue was 231.827 + 227.58 + 224.488 + 241.091 = $925.0 Mil.
Gross Profit was 111.661 + 108.114 + 106.278 + 115.441 = $441.5 Mil.
Total Current Assets was $549.8 Mil.
Total Assets was $1,474.1 Mil.
Property, Plant and Equipment(Net PPE) was $323.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $86.6 Mil.
Selling, General & Admin. Expense(SGA) was $348.0 Mil.
Total Current Liabilities was $164.3 Mil.
Long-Term Debt was $421.0 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)
=(148.774 / 892.968) / (143.635 / 924.986)
=0.16660619 / 0.15528343
=1.0729

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)
=(105.297 / 924.986) / (108.855 / 892.968)
=0.47729803 / 0.47600362
=1.0027

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 - (501.363 + 332.772) / 1336.422) / (1 - (549.831 + 323.491) / 1474.145)
=0.37584461 / 0.40757388
=0.9222

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
=892.968 / 924.986
=0.9654

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))
=(86.568 / (86.568 + 323.491)) / (89.883 / (89.883 + 332.772))
=0.21111108 / 0.21266281
=0.9927

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)
=(315.984 / 892.968) / (347.986 / 924.986)
=0.35385814 / 0.37620678
=0.9406

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)
=((380.814 + 175.334) / 1336.422) / ((421.006 + 164.34) / 1474.145)
=0.416147 / 0.39707491
=1.048

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
=(-49.774 - 0 - 123.917) / 1336.422
=-0.13

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 -3.09 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

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 0.98651.140.8160.9671.02290.99041.02470.91970.91331.0781
GMI 1.03931.0130.96820.98580.99611.03471.05690.96181.04581.0695
AQI 1.43971.59820.91241.4550.94730.88831.70410.98420.97570.9359
SGI 1.07121.14861.15771.07951.04841.07561.22551.05220.970.9992
DEPI 1.07711.10081.00960.9560.92591.00121.16260.87751.09731.0019
SGAI 1.05451.0361.05250.99970.95121.0661.07481.07420.94370.97
LVGI 0.83551.09980.88751.21290.73731.08492.97160.92290.99671.0402
TATA -0.0654-0.0454-0.084-0.0928-0.0512-0.054-0.0272-0.0689-0.0742-0.1348
M-score -2.48-2.21-2.92-2.77-2.59-2.74-2.71-2.86-2.90-3.04

Haemonetics Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.78190.91970.9960.94920.98340.91330.93111.011.07291.0781
GMI 0.95960.96180.97891.01681.05281.04581.02521.00571.00271.0695
AQI 1.01050.98420.97040.96160.97110.97570.99551.01240.92220.9359
SGI 1.14321.05221.0090.98180.97640.970.95320.95310.96540.9992
DEPI 0.80040.87750.99921.05141.09071.09731.05331.0010.99271.0019
SGAI 1.0641.07680.96250.9970.97510.94270.98350.94440.94060.9692
LVGI 0.91350.92290.93730.9650.99220.99670.98991.00861.0481.0402
TATA -0.0525-0.0689-0.068-0.0756-0.0633-0.0742-0.0717-0.0658-0.13-0.1348
M-score -2.82-2.86-2.79-2.89-2.78-2.90-2.90-2.81-3.09-3.04
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