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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-2.85 (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 -2.85 suggests that the company is not a manipulator.

HAE' s 10-Year Beneish M-Score Range
Min: -3.4   Max: -2.21
Current: -2.85

-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 * 0.9197+0.528 * 0.9618+0.404 * 0.9842+0.892 * 1.0522+0.115 * 0.8775
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0742+4.679 * -0.0675-0.327 * 0.9229
=-2.85

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
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 $365.1 Mil.
Total Current Liabilities was $216.9 Mil.
Long-Term Debt was $392.1 Mil.
Net Income was 10.184 + 16.29 + 16.548 + -7.874 = $35.1 Mil.
Non Operating Income was 0 + 0 + 0 + -2.166 = $-2.2 Mil.
Cash Flow from Operations was 51.471 + 45.291 + 29.36 + 13.402 = $139.5 Mil.
Accounts Receivable was $170.1 Mil.
Revenue was 249.942 + 247.395 + 218.178 + 176.475 = $892.0 Mil.
Gross Profit was 123.141 + 113.115 + 101.762 + 90.113 = $428.1 Mil.
Total Current Assets was $597.0 Mil.
Total Assets was $1,461.9 Mil.
Property, Plant and Equipment(Net PPE) was $257.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $65.5 Mil.
Selling, General & Admin. Expense(SGA) was $323.1 Mil.
Total Current Liabilities was $180.1 Mil.
Long-Term Debt was $456.9 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)
=(164.603 / 938.509) / (170.111 / 891.99)
=0.17538777 / 0.19070954
=0.9197

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)
=(121.629 / 891.99) / (115.441 / 938.509)
=0.47997287 / 0.49905329
=0.9618

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 - (622.976 + 271.437) / 1514.178) / (1 - (597.01 + 256.953) / 1461.917)
=0.40930789 / 0.41586082
=0.9842

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
=938.509 / 891.99
=1.0522

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))
=(65.481 / (65.481 + 256.953)) / (81.74 / (81.74 + 271.437))
=0.20308342 / 0.23144202
=0.8775

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)
=(365.127 / 938.509) / (323.054 / 891.99)
=0.38905008 / 0.36217222
=1.0742

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)
=((392.057 + 216.928) / 1514.178) / ((456.944 + 180.144) / 1461.917)
=0.40218851 / 0.43578945
=0.9229

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
=(35.148 - -2.166 - 139.524) / 1514.178
=-0.0675

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 -2.85 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.0060.99040.9741.1041.12691.02470.97030.83090.78190.9197
GMI 1.03411.03471.03441.04271.0561.05691.05081.00870.95960.9618
AQI 0.93090.88830.89351.60191.57971.70411.79180.97281.01050.9842
SGI 1.05241.07561.07241.10861.16521.22551.27441.23321.14321.0522
DEPI 1.00941.00121.02151.27431.27371.16261.02910.81690.80040.8775
SGAI 0.95821.0661.10921.09991.1211.07481.10751.06921.0641.0742
LVGI 0.94721.08491.07413.14363.30182.97163.20270.95730.91350.9229
TATA -0.0513-0.054-0.0327-0.0308-0.0327-0.0319-0.0504-0.0411-0.051-0.0675
M-score -2.65-2.74-2.66-2.85-2.85-2.73-2.89-2.65-2.81-2.85
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