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Health Management Associates, Inc. (NYSE:HMA)
Beneish M-Score
0.00 (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.

Health Management Associates, Inc. has a M-score of -2.72 suggests that the company is not a manipulator.

HMA' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Health Management Associates, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Health Management Associates, Inc. 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 * 0.9874+0.528 * 1.0435+0.404 * 1.0197+0.892 * 1.0107+0.115 * 0.9059
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3149+4.679 * -0.0447-0.327 * 0.9759
=-2.72

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

This Year (Sep13) TTM:Last Year (Sep12) TTM:
Accounts Receivable was $970 Mil.
Revenue was 1421.243 + 1461.707 + 1487.829 + 1471.911 = $5,843 Mil.
Gross Profit was 544.882 + 556.965 + 566.383 + 566.938 = $2,235 Mil.
Total Current Assets was $1,463 Mil.
Total Assets was $6,625 Mil.
Property, Plant and Equipment(Net PPE) was $3,591 Mil.
Depreciation, Depletion and Amortization(DDA) was $394 Mil.
Selling, General & Admin. Expense(SGA) was $184 Mil.
Total Current Liabilities was $852 Mil.
Long-Term Debt was $3,637 Mil.
Net Income was -96.645 + 0.16 + 23.688 + 35.75 = $-37 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -7.254 + 108.221 + 19.241 + 139.208 = $259 Mil.
Accounts Receivable was $972 Mil.
Revenue was 1438.859 + 1470.728 + 1484.007 + 1387.447 = $5,781 Mil.
Gross Profit was 584.735 + 598.641 + 591.327 + 533.16 = $2,308 Mil.
Total Current Assets was $1,424 Mil.
Total Assets was $6,307 Mil.
Property, Plant and Equipment(Net PPE) was $3,415 Mil.
Depreciation, Depletion and Amortization(DDA) was $336 Mil.
Selling, General & Admin. Expense(SGA) was $138 Mil.
Total Current Liabilities was $903 Mil.
Long-Term Debt was $3,476 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)
=(970.132 / 5842.69) / (972.104 / 5781.041)
=0.16604201 / 0.1681538
=0.9874

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)
=(556.965 / 5781.041) / (544.882 / 5842.69)
=0.39921236 / 0.38255803
=1.0435

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 - (1462.656 + 3590.832) / 6624.903) / (1 - (1424.201 + 3415.431) / 6306.728)
=0.23719819 / 0.23262395
=1.0197

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
=5842.69 / 5781.041
=1.0107

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))
=(336.396 / (336.396 + 3415.431)) / (394.45 / (394.45 + 3590.832))
=0.08966192 / 0.09897668
=0.9059

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)
=(183.584 / 5842.69) / (138.142 / 5781.041)
=0.03142114 / 0.0238957
=1.3149

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)
=((3636.948 + 852.294) / 6624.903) / ((3476.368 + 902.678) / 6306.728)
=0.67763136 / 0.69434515
=0.9759

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
=(-37.047 - 0 - 259.416) / 6624.903
=-0.0447

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.

Health Management Associates, Inc. has a M-score of -2.72 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.

Health Management Associates, Inc. Annual Data

Sep03Sep04Sep05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 0.96991.01240.96280.82380.93510.97451.01031.03531.18590.9238
GMI 0.71233.21891.00040.3590.99871.91490.96851.00281.18050.9883
AQI 0.94061.5761.00020.9641.03310.9610.96030.95811.03931.0356
SGI 1.1181.2551.13041.12861.05981.01581.0451.11750.99891.1532
DEPI 0.97990.98841.00770.98690.84720.90811.0361.0561.11050.8176
SGAI 1.58580.1251.09884.00310.99460.04921.0831.08160.99530.6948
LVGI 1.02870.88781.00861.09442.27630.890.96090.940.99450.9648
TATA -0.0153-0.0319-0.0615-0.0611-0.0416-0.0868-0.0712-0.0609-0.0617-0.07
M-score -2.76-0.80-2.70-3.72-3.10-2.24-2.79-2.63-2.47-2.69

Health Management Associates, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
DSRI 1.09031.14481.18741.17551.10711.06170.92380.90231.00120.9874
GMI 1.07381.11321.18071.13021.08791.04380.98831.00411.02491.0435
AQI 0.96321.01141.03931.11571.09681.04021.03560.97431.0121.0197
SGI 1.06591.03170.99761.0461.09571.14581.15321.10421.05371.0107
DEPI 1.05241.1631.11051.07131.020.85010.81760.81890.86480.9059
SGAI 1.13931.19090.99510.93750.89050.84490.65480.64330.58651.3149
LVGI 0.93410.96420.99451.00061.01030.98440.96480.95930.96240.9759
TATA -0.0627-0.0649-0.0617-0.0546-0.0672-0.0643-0.07-0.0663-0.0509-0.0447
M-score -2.60-2.56-2.47-2.40-2.51-2.54-2.68-2.74-2.58-2.72
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