Switch to:
Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.75 (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.

Myriad Genetics Inc has a M-score of -2.75 suggests that the company is not a manipulator.

MYGN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.5   Max: 9.51
Current: -2.75

-4.5
9.51

During the past 13 years, the highest Beneish M-Score of Myriad Genetics Inc was 9.51. The lowest was -4.50. And the median was -2.41.


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 Myriad Genetics 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 * 1.1116+0.528 * 1.0536+0.404 * 0.9911+0.892 * 0.9909+0.115 * 1.0068
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.105+4.679 * -0.0865-0.327 * 0.8955
=-2.75

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $83.4 Mil.
Revenue was 183.5 + 189.884 + 179.985 + 184.4 = $737.8 Mil.
Gross Profit was 147 + 151.495 + 143.692 + 146.5 = $588.7 Mil.
Total Current Assets was $307.3 Mil.
Total Assets was $787.0 Mil.
Property, Plant and Equipment(Net PPE) was $64.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.8 Mil.
Selling, General & Admin. Expense(SGA) was $367.1 Mil.
Total Current Liabilities was $59.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 26.6 + 18.712 + 21.475 + 24 = $90.8 Mil.
Non Operating Income was 0.1 + -0.817 + -0.298 + 1.5 = $0.5 Mil.
Cash Flow from Operations was 24.9 + 51.044 + 29.856 + 52.6 = $158.4 Mil.
Accounts Receivable was $75.7 Mil.
Revenue was 168.8 + 188.75 + 182.924 + 204.06 = $744.5 Mil.
Gross Profit was 133.9 + 157.771 + 156.315 + 177.929 = $625.9 Mil.
Total Current Assets was $335.4 Mil.
Total Assets was $809.0 Mil.
Property, Plant and Equipment(Net PPE) was $43.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.4 Mil.
Selling, General & Admin. Expense(SGA) was $335.2 Mil.
Total Current Liabilities was $67.7 Mil.
Long-Term Debt was $0.0 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)
=(83.4 / 737.769) / (75.717 / 744.534)
=0.11304351 / 0.10169717
=1.1116

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)
=(151.495 / 744.534) / (147 / 737.769)
=0.84068021 / 0.79792862
=1.0536

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 - (307.3 + 64.9) / 787) / (1 - (335.366 + 43.424) / 809.006)
=0.5270648 / 0.53178345
=0.9911

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
=737.769 / 744.534
=0.9909

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))
=(17.428 / (17.428 + 43.424)) / (25.8 / (25.8 + 64.9))
=0.28639979 / 0.28445424
=1.0068

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)
=(367.064 / 737.769) / (335.219 / 744.534)
=0.49753243 / 0.45024002
=1.105

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)
=((0 + 59) / 787) / ((0 + 67.725) / 809.006)
=0.07496823 / 0.08371384
=0.8955

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
=(90.787 - 0.485 - 158.4) / 787
=-0.0865

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.

Myriad Genetics Inc has a M-score of -2.75 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.

Myriad Genetics Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 0.8711.08650.92180.74890.96470.94850.97461.26250.68411.1274
GMI 0.99380.9430.94040.98550.98820.99331.01630.99961.0121.0798
AQI 0.522316.10620.70530.90350.97721.70561.27281.02941.55860.9568
SGI 1.38681.37491.41831.46521.11061.10871.23361.23631.26910.9292
DEPI 0.96561.10441.0280.7681.2620.97980.87481.1170.85511.0515
SGAI 0.80181.10041.06170.85841.04650.9490.99460.97741.02361.2042
LVGI 0.6620.9661.57540.46740.67051.21721.15661.23261.21910.9164
TATA -0.0367-0.026-0.11130.0066-0.0049-0.0487-0.0423-0.033-0.0146-0.0791
M-score -2.483.89-3.05-2.14-2.32-2.44-2.44-2.23-2.46-2.77

Myriad Genetics Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.04940.82370.66470.68410.80470.98171.17951.12751.11161.0076
GMI 0.99830.99631.00141.0121.03631.06371.07761.081.05361.0294
AQI 1.08121.10211.56381.55861.4221.48391.00550.95680.99110.9384
SGI 1.31451.35181.33491.26911.09130.98330.94540.92920.99091.0301
DEPI 1.18181.09491.0240.85510.79620.73320.95041.05151.00681.0357
SGAI 0.95070.94920.99381.02361.12541.22241.19061.20411.1051.0126
LVGI 1.23931.40531.20161.21910.8280.85930.97560.91640.89550.9878
TATA -0.0512-0.0659-0.0301-0.01460.0392-0.0018-0.0455-0.0791-0.0865-0.0554
M-score -2.41-2.71-2.46-2.46-2.19-2.31-2.56-2.77-2.75-2.71
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK