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Myriad Genetics, Inc. (NAS:MYGN)
Beneish M-Score
-2.69 (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 -2.69 suggests that the company is not a manipulator.

MYGN' s 10-Year Beneish M-Score Range
Min: -4.5   Max: 9.51
Current: -2.69

-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 * 0.8466+0.528 * 0.9961+0.404 * 1.1021+0.892 * 1.3517+0.115 * 1.0959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9494+4.679 * -0.0659-0.327 * 1.4053
=-2.69

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $87.6 Mil.
Revenue was 204.06 + 202.467 + 174.115 + 156.472 = $737.1 Mil.
Gross Profit was 177.929 + 176.986 + 152.042 + 136.138 = $643.1 Mil.
Total Current Assets was $454.5 Mil.
Total Assets was $756.7 Mil.
Property, Plant and Equipment(Net PPE) was $31.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.2 Mil.
Selling, General & Admin. Expense(SGA) was $291.3 Mil.
Total Current Liabilities was $67.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 50.36 + 55.465 + 44.074 + 37.892 = $187.8 Mil.
Non Operating Income was -0.185 + -0.439 + 0.001 + -0.111 = $-0.7 Mil.
Cash Flow from Operations was 47.549 + 90.482 + 63 + 37.396 = $238.4 Mil.
Accounts Receivable was $76.6 Mil.
Revenue was 149.14 + 133.437 + 132.965 + 129.777 = $545.3 Mil.
Gross Profit was 129.256 + 116.11 + 116.013 + 112.549 = $473.9 Mil.
Total Current Assets was $457.3 Mil.
Total Assets was $717.7 Mil.
Property, Plant and Equipment(Net PPE) was $27.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General & Admin. Expense(SGA) was $227.0 Mil.
Total Current Liabilities was $45.5 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)
=(87.6 / 737.114) / (76.552 / 545.319)
=0.11884186 / 0.14038022
=0.8466

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)
=(176.986 / 545.319) / (177.929 / 737.114)
=0.86908397 / 0.87244985
=0.9961

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 - (454.506 + 31.313) / 756.681) / (1 - (457.333 + 27.285) / 717.746)
=0.35796062 / 0.32480571
=1.1021

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
=737.114 / 545.319
=1.3517

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))
=(9.086 / (9.086 + 27.285)) / (9.245 / (9.245 + 31.313))
=0.24981441 / 0.22794516
=1.0959

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)
=(291.266 / 737.114) / (226.975 / 545.319)
=0.39514376 / 0.41622427
=0.9494

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 + 67.392) / 756.681) / ((0 + 45.488) / 717.746)
=0.08906263 / 0.06337618
=1.4053

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
=(187.791 - -0.734 - 238.427) / 756.681
=-0.0659

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 -2.69 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 0.74050.86850.87161.06230.98710.67030.97140.95281.0061.2525
GMI 1.06281.00510.99380.9430.94040.98550.98820.99331.01630.9994
AQI 0.53540.1730.522316.10620.70530.90350.97721.70561.27281.0294
SGI 0.88071.45471.38681.37491.41831.46521.11061.10871.23361.2362
DEPI 0.88231.0060.96561.10441.0280.7681.2620.97980.87481.118
SGAI 1.25470.86010.80181.10041.06170.85841.04650.9490.99460.9776
LVGI 0.75691.82970.6620.9661.57540.46740.67051.21721.15661.2326
TATA -0.0517-0.0921-0.0367-0.026-0.11130.0066-0.0049-0.0487-0.0423-0.033
M-score -3.20-3.20-2.483.87-2.99-2.21-2.32-2.44-2.41-2.24

Myriad Genetics, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.9030.92840.90791.0061.14931.41131.49531.25251.03880.8466
GMI 0.99911.00261.01271.01631.0131.011.00250.99940.99810.9961
AQI 1.8381.45821.69871.27281.20421.05030.95151.02941.08121.1021
SGI 1.13891.1751.21061.23361.23371.23081.21591.23621.31451.3517
DEPI 0.93610.94710.95090.87480.91471.00131.05331.1181.18291.0959
SGAI 0.95510.95430.97510.99461.00321.00370.99560.97760.95090.9494
LVGI 0.99721.35681.26341.15661.61561.19581.38811.23261.23931.4053
TATA -0.048-0.0243-0.0388-0.0423-0.0622-0.0441-0.0273-0.033-0.0512-0.0659
M-score -2.33-2.43-2.36-2.41-2.55-2.14-2.10-2.24-2.42-2.69
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