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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-2.88 (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 -2.89 suggests that the company is not a manipulator.

HAE' s 10-Year Beneish M-Score Range
Min: -3.56   Max: -2.01
Current: -2.88

-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 -2.76.


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 * 0.9492+0.528 * 1.0168+0.404 * 0.9616+0.892 * 0.9818+0.115 * 1.0514
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9945+4.679 * -0.0756-0.327 * 0.965
=-2.89

* 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 $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 $354.1 Mil.
Total Current Liabilities was $165.1 Mil.
Long-Term Debt was $428.3 Mil.
Net Income was 7.487 + -3.649 + 10.184 + 16.29 = $30.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 31.242 + 13.738 + 51.471 + 45.291 = $141.7 Mil.
Accounts Receivable was $162.1 Mil.
Revenue was 235.755 + 219.543 + 249.942 + 247.395 = $952.6 Mil.
Gross Profit was 119.884 + 111.412 + 123.141 + 113.115 = $467.6 Mil.
Total Current Assets was $592.1 Mil.
Total Assets was $1,484.2 Mil.
Property, Plant and Equipment(Net PPE) was $258.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $75.1 Mil.
Selling, General & Admin. Expense(SGA) was $362.7 Mil.
Total Current Liabilities was $198.2 Mil.
Long-Term Debt was $420.7 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)
=(151.055 / 935.279) / (162.084 / 952.635)
=0.16150796 / 0.17014281
=0.9492

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)
=(106.278 / 952.635) / (108.114 / 935.279)
=0.49079868 / 0.48270302
=1.0168

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 - (556.959 + 311.999) / 1474.545) / (1 - (592.081 + 258.267) / 1484.246)
=0.41069415 / 0.42708419
=0.9616

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
=935.279 / 952.635
=0.9818

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))
=(75.127 / (75.127 + 258.267)) / (85.109 / (85.109 + 311.999))
=0.22533999 / 0.21432205
=1.0514

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)
=(354.139 / 935.279) / (362.714 / 952.635)
=0.3786453 / 0.38074814
=0.9945

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)
=((428.253 + 165.056) / 1474.545) / ((420.711 + 198.188) / 1484.246)
=0.40236751 / 0.41697872
=0.965

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
=(30.312 - 0 - 141.742) / 1474.545
=-0.0756

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 -2.89 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DSRI 0.92740.98390.98651.140.8160.9671.02290.99041.02470.9197
GMI 0.92360.98181.03931.0130.96820.98580.99611.03471.05690.9618
AQI 0.99630.81031.43971.59820.91241.4550.94730.88831.70410.9842
SGI 1.05321.09421.07121.14861.15771.07951.04841.07561.22551.0522
DEPI 0.97941.13611.07711.10081.00960.9560.92591.00121.16260.8775
SGAI 1.02970.93961.05451.0361.05250.99970.95121.0661.07481.0742
LVGI 0.76950.80910.83551.09980.88751.21290.73731.08492.97160.9229
TATA -0.0678-0.0838-0.0749-0.0454-0.084-0.0928-0.0516-0.054-0.0317-0.0689
M-score -2.79-2.80-2.53-2.21-2.92-2.77-2.59-2.74-2.73-2.86

Haemonetics Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.9741.1041.12691.02470.97030.83090.78190.91970.9960.9492
GMI 1.03441.04271.0561.05691.05081.00870.95960.96180.97891.0168
AQI 0.89351.60191.57971.70411.79180.97281.01050.98420.97040.9616
SGI 1.07241.10861.16521.22551.27441.23321.14321.05221.0090.9818
DEPI 1.02151.27431.27371.16261.02910.81690.80040.87750.99921.0514
SGAI 1.10921.09991.1211.07481.10751.06921.0641.07420.960.9945
LVGI 1.07413.14363.30182.97163.20270.95730.91350.92290.93730.965
TATA -0.0327-0.0308-0.0327-0.0319-0.0519-0.0425-0.0525-0.0689-0.068-0.0756
M-score -2.66-2.85-2.85-2.73-2.89-2.65-2.82-2.86-2.79-2.89
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