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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

HAE' s 10-Year Beneish M-Score Range
Min: -3.56   Max: -2.01
Current: -2.66

-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 * 0.9834+0.528 * 1.0528+0.404 * 0.9727+0.892 * 0.9764+0.115 * 1.3886
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9733+4.679 * -0.0451-0.327 * 0.9898
=-2.66

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $547.5 Mil.
Total Assets was $1,471.8 Mil.
Property, Plant and Equipment(Net PPE) was $323.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $64.3 Mil.
Selling, General & Admin. Expense(SGA) was $347.3 Mil.
Total Current Liabilities was $162.0 Mil.
Long-Term Debt was $421.0 Mil.
Net Income was 15.988 + 7.487 + -3.649 + 10.184 = $30.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 0 + 31.242 + 13.738 + 51.471 = $96.5 Mil.
Accounts Receivable was $149.6 Mil.
Revenue was 242.12 + 235.755 + 219.543 + 249.942 = $947.4 Mil.
Gross Profit was 121.629 + 119.884 + 111.412 + 123.141 = $476.1 Mil.
Total Current Assets was $603.3 Mil.
Total Assets was $1,487.9 Mil.
Property, Plant and Equipment(Net PPE) was $260.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $77.8 Mil.
Selling, General & Admin. Expense(SGA) was $365.5 Mil.
Total Current Liabilities was $189.0 Mil.
Long-Term Debt was $406.4 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)
=(143.635 / 924.986) / (149.585 / 947.36)
=0.15528343 / 0.15789668
=0.9834

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)
=(108.114 / 947.36) / (111.661 / 924.986)
=0.50251858 / 0.47729803
=1.0528

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 - (547.485 + 323.491) / 1471.799) / (1 - (603.332 + 260.105) / 1487.893)
=0.40822354 / 0.41969147
=0.9727

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
=924.986 / 947.36
=0.9764

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))
=(77.803 / (77.803 + 260.105)) / (64.302 / (64.302 + 323.491))
=0.23024906 / 0.16581527
=1.3886

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)
=(347.337 / 924.986) / (365.494 / 947.36)
=0.37550514 / 0.38580265
=0.9733

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)
=((421.006 + 161.994) / 1471.799) / ((406.418 + 189.008) / 1487.893)
=0.39611387 / 0.40018066
=0.9898

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
=(30.01 - 0 - 96.451) / 1471.799
=-0.0451

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 -2.66 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 0.92740.98390.98651.140.8160.96781.0220.99041.02470.9197
GMI 0.91610.98181.03931.0130.96820.98580.99611.03471.05690.9618
AQI 0.99630.82561.4131.59820.91241.45910.94460.88831.70410.9842
SGI 1.05321.09421.07121.14861.15771.07951.04841.07561.22551.0522
DEPI 0.97941.13611.07711.10081.00960.95110.93071.00121.16260.8775
SGAI 1.03350.93961.05451.0361.05250.99970.95121.0661.07481.0742
LVGI 0.76950.80740.83721.09980.88751.22710.72881.08492.97160.9229
TATA -0.0678-0.0836-0.0749-0.0454-0.084-0.0929-0.0512-0.054-0.0272-0.0689
M-score -2.80-2.79-2.54-2.21-2.92-2.78-2.59-2.74-2.71-2.86

Haemonetics Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.1041.12691.02470.97030.83090.78190.91970.9960.94920.9834
GMI 1.04271.0561.05691.05081.00870.95960.96180.97891.01681.0528
AQI 1.60191.57971.70411.79180.97281.01050.98420.97040.96160.9727
SGI 1.10861.16521.22551.27441.23321.14321.05221.0090.98180.9764
DEPI 1.27431.27371.16261.02910.81690.80040.87750.99921.05141.3886
SGAI 1.09991.1211.07481.10751.06921.0641.07420.960.99450.9733
LVGI 3.14363.30182.97163.20270.95730.91350.92290.93730.9650.9898
TATA -0.0299-0.0301-0.0272-0.0458-0.0373-0.049-0.0675-0.068-0.0756-0.0451
M-score -2.85-2.83-2.71-2.87-2.63-2.80-2.85-2.79-2.89-2.66
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