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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: -3.56   Max: -2.01
Current: -2.9

-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 -2.77.


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 * 0.9311+0.528 * 1.0252+0.404 * 0.9955+0.892 * 0.9532+0.115 * 1.0533
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9821+4.679 * -0.0717-0.327 * 0.9899
=-2.90

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $139.1 Mil.
Revenue was 213.413 + 226.478 + 231.827 + 227.58 = $899.3 Mil.
Gross Profit was 102.539 + 108.365 + 111.661 + 108.114 = $430.7 Mil.
Total Current Assets was $508.4 Mil.
Total Assets was $1,427.4 Mil.
Property, Plant and Equipment(Net PPE) was $328.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $87.8 Mil.
Selling, General & Admin. Expense(SGA) was $329.3 Mil.
Total Current Liabilities was $169.8 Mil.
Long-Term Debt was $399.5 Mil.
Net Income was -0.267 + -2.93 + 15.988 + 7.487 = $20.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 9.25 + 55.305 + 26.893 + 31.242 = $122.7 Mil.
Accounts Receivable was $156.7 Mil.
Revenue was 224.488 + 241.091 + 242.12 + 235.755 = $943.5 Mil.
Gross Profit was 106.278 + 115.441 + 121.629 + 119.884 = $463.2 Mil.
Total Current Assets was $569.3 Mil.
Total Assets was $1,476.7 Mil.
Property, Plant and Equipment(Net PPE) was $294.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $83.9 Mil.
Selling, General & Admin. Expense(SGA) was $351.8 Mil.
Total Current Liabilities was $165.9 Mil.
Long-Term Debt was $429.0 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)
=(139.103 / 899.298) / (156.733 / 943.454)
=0.15467954 / 0.16612681
=0.9311

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)
=(108.365 / 943.454) / (102.539 / 899.298)
=0.49099585 / 0.47890577
=1.0252

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 - (508.361 + 328.882) / 1427.411) / (1 - (569.305 + 294.1) / 1476.731)
=0.41345345 / 0.41532683
=0.9955

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
=899.298 / 943.454
=0.9532

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))
=(83.894 / (83.894 + 294.1)) / (87.797 / (87.797 + 328.882))
=0.22194532 / 0.21070656
=1.0533

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)
=(329.3 / 899.298) / (351.773 / 943.454)
=0.36617451 / 0.37285655
=0.9821

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)
=((399.453 + 169.765) / 1427.411) / ((429.01 + 165.868) / 1476.731)
=0.39877653 / 0.40283437
=0.9899

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
=(20.278 - 0 - 122.69) / 1427.411
=-0.0717

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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.02470.97030.83090.78190.91970.9960.94920.98340.91330.9311
GMI 1.05691.05081.00870.95960.96180.97891.01681.05281.04581.0252
AQI 1.70411.79180.97281.01050.98420.97040.96160.97110.97570.9955
SGI 1.22551.27441.23321.14321.05221.0090.98180.97640.970.9532
DEPI 1.16261.02910.81690.80040.87750.99921.05141.09071.09731.0533
SGAI 1.07481.10751.06921.0641.07680.96250.9970.97580.94140.9821
LVGI 2.97163.20270.95730.91350.92290.93730.9650.99220.99670.9899
TATA -0.0319-0.0519-0.0425-0.0525-0.0689-0.068-0.0756-0.0633-0.0742-0.0717
M-score -2.73-2.89-2.65-2.82-2.86-2.79-2.89-2.78-2.90-2.90
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