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Haemonetics Corp (NYSE:HAE)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

HAE' s 10-Year Beneish M-Score Range
Min: -3.79   Max: -1.66
Current: -2.79

-3.79
-1.66

During the past 13 years, the highest Beneish M-Score of Haemonetics Corp was -1.66. The lowest was -3.79. 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 * 0.996+0.528 * 0.9789+0.404 * 0.9704+0.892 * 1.009+0.115 * 0.9992
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.96+4.679 * -0.068-0.327 * 0.9373
=-2.79

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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 $350.9 Mil.
Total Current Liabilities was $165.9 Mil.
Long-Term Debt was $429.0 Mil.
Net Income was -3.649 + 10.184 + 16.29 + 16.548 = $39.4 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 13.738 + 51.471 + 45.291 + 29.36 = $139.9 Mil.
Accounts Receivable was $156.0 Mil.
Revenue was 219.543 + 249.942 + 247.395 + 218.178 = $935.1 Mil.
Gross Profit was 111.412 + 123.141 + 113.115 + 101.762 = $449.4 Mil.
Total Current Assets was $591.4 Mil.
Total Assets was $1,479.6 Mil.
Property, Plant and Equipment(Net PPE) was $255.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $72.7 Mil.
Selling, General & Admin. Expense(SGA) was $362.2 Mil.
Total Current Liabilities was $187.8 Mil.
Long-Term Debt was $448.1 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)
=(156.733 / 943.454) / (155.958 / 935.058)
=0.16612681 / 0.16678965
=0.996

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)
=(115.441 / 935.058) / (106.278 / 943.454)
=0.48064398 / 0.49099585
=0.9789

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 - (569.305 + 294.1) / 1476.731) / (1 - (591.372 + 254.976) / 1479.63)
=0.41532683 / 0.42800024
=0.9704

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
=943.454 / 935.058
=1.009

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))
=(72.658 / (72.658 + 254.976)) / (83.894 / (83.894 + 294.1))
=0.22176575 / 0.22194532
=0.9992

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)
=(350.878 / 943.454) / (362.24 / 935.058)
=0.3719079 / 0.38739843
=0.96

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)
=((429.01 + 165.868) / 1476.731) / ((448.119 + 187.795) / 1479.63)
=0.40283437 / 0.42977907
=0.9373

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
=(39.373 - 0 - 139.86) / 1476.731
=-0.068

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 -2.79 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 -0.0678-0.0836-0.0749-0.0454-0.084-0.0929-0.0512-0.054-0.0317-0.0689
M-score -2.80-2.79-2.54-2.21-2.92-2.78-2.59-2.74-2.73-2.86

Haemonetics Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.99040.9741.1041.12691.02470.97030.83090.78190.91970.996
GMI 1.03471.03441.04271.0561.05691.05081.00870.95960.96180.9789
AQI 0.88830.89351.60191.57971.70411.79180.97281.01050.98420.9704
SGI 1.07561.07241.10861.16521.22551.27441.23321.14321.05221.009
DEPI 1.00121.02151.27431.27371.16261.02910.81690.80040.87750.9992
SGAI 1.0661.10921.09991.1211.07481.10751.06921.0641.07420.96
LVGI 1.08491.07413.14363.30182.97163.20270.95730.91350.92290.9373
TATA -0.054-0.0327-0.0299-0.0301-0.0292-0.0493-0.0408-0.0525-0.0689-0.068
M-score -2.74-2.66-2.85-2.83-2.72-2.88-2.64-2.82-2.86-2.79
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