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Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

MYGN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.5   Max: 3.89
Current: -2.59

-4.5
3.89

During the past 13 years, the highest Beneish M-Score of Myriad Genetics Inc was 3.89. The lowest was -4.50. And the median was -2.44.


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 * 1.0254+0.528 * 1.006+0.404 * 1.0635+0.892 * 1.0423+0.115 * 0.8632
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9413+4.679 * -0.048-0.327 * 0.9158
=-2.59

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $91.7 Mil.
Revenue was 186.4 + 190.5 + 193.3 + 183.5 = $753.7 Mil.
Gross Profit was 146.4 + 150.3 + 152.7 + 147 = $596.4 Mil.
Total Current Assets was $314.5 Mil.
Total Assets was $880.5 Mil.
Property, Plant and Equipment(Net PPE) was $58.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.7 Mil.
Selling, General & Admin. Expense(SGA) was $359.1 Mil.
Total Current Liabilities was $72.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 35.7 + 32.6 + 30.3 + 26.6 = $125.2 Mil.
Non Operating Income was 1.2 + 0.2 + -0.3 + 0.1 = $1.2 Mil.
Cash Flow from Operations was 56.4 + 44.1 + 40.9 + 24.9 = $166.3 Mil.
Accounts Receivable was $85.8 Mil.
Revenue was 189.9 + 180 + 184.4 + 168.8 = $723.1 Mil.
Gross Profit was 151.5 + 143.7 + 146.5 + 133.9 = $575.6 Mil.
Total Current Assets was $283.6 Mil.
Total Assets was $766.2 Mil.
Property, Plant and Equipment(Net PPE) was $67.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.0 Mil.
Selling, General & Admin. Expense(SGA) was $366.0 Mil.
Total Current Liabilities was $68.7 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)
=(91.7 / 753.7) / (85.8 / 723.1)
=0.12166645 / 0.11865579
=1.0254

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)
=(575.6 / 723.1) / (596.4 / 753.7)
=0.79601715 / 0.79129627
=1.006

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 - (314.5 + 58.3) / 880.5) / (1 - (283.6 + 67.2) / 766.2)
=0.5766042 / 0.5421561
=1.0635

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
=753.7 / 723.1
=1.0423

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))
=(25 / (25 + 67.2)) / (26.7 / (26.7 + 58.3))
=0.27114967 / 0.31411765
=0.8632

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)
=(359.1 / 753.7) / (366 / 723.1)
=0.47644952 / 0.50615406
=0.9413

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 + 72.3) / 880.5) / ((0 + 68.7) / 766.2)
=0.08211244 / 0.08966327
=0.9158

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
=(125.2 - 1.2 - 166.3) / 880.5
=-0.048

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 -2.59 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.08650.92180.74890.96470.94850.97461.26250.68411.12741.0252
GMI 0.9430.94040.98550.98820.99331.01630.99961.0121.07981.0061
AQI 16.10620.70530.90350.97721.70561.27281.02941.55860.95681.0635
SGI 1.37491.41831.46521.11061.10871.23361.23631.26910.92921.0425
DEPI 1.10441.0280.7681.2620.97980.87481.1170.85511.05150.8632
SGAI 1.10041.06170.85841.04650.9490.99460.97741.02361.20420.9412
LVGI 0.9661.57540.46740.67051.21721.15661.23261.21910.91640.9158
TATA -0.026-0.11130.0066-0.0049-0.0487-0.0423-0.033-0.0146-0.0791-0.0479
M-score 3.89-3.05-2.14-2.32-2.44-2.44-2.23-2.46-2.77-2.59

Myriad Genetics Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.66470.68410.80470.98171.17941.12741.11151.00760.94211.0254
GMI 1.00141.0121.03631.06371.07761.081.05361.02941.01461.006
AQI 1.56381.55861.4221.48391.00550.95680.99110.93840.91471.0635
SGI 1.33491.26911.09130.98330.94550.92920.9911.03011.04881.0423
DEPI 1.0240.85510.79620.73320.95011.05151.00681.03570.83690.8632
SGAI 0.99381.02361.12541.22241.19061.20421.10511.01270.98220.9413
LVGI 1.20161.21910.8280.85930.97560.91640.89550.98780.8830.9158
TATA -0.0301-0.01460.0392-0.0018-0.0457-0.0792-0.0867-0.0555-0.0598-0.048
M-score -2.46-2.46-2.19-2.31-2.56-2.77-2.75-2.71-2.77-2.59
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