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Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.31 (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 -2.31 suggests that the company is not a manipulator.

MYGN' s 10-Year Beneish M-Score Range
Min: -4.5   Max: 9.51
Current: -2.31

-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 * 0.9816+0.528 * 1.0636+0.404 * 1.4839+0.892 * 0.9835+0.115 * 0.7323
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2223+4.679 * -0.0018-0.327 * 0.8593
=-2.31

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $81.2 Mil.
Revenue was 184.393 + 168.837 + 188.766 + 182.924 = $724.9 Mil.
Gross Profit was 146.541 + 133.972 + 157.786 + 156.315 = $594.6 Mil.
Total Current Assets was $320.1 Mil.
Total Assets was $781.9 Mil.
Property, Plant and Equipment(Net PPE) was $46.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.0 Mil.
Selling, General & Admin. Expense(SGA) was $350.1 Mil.
Total Current Liabilities was $59.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 24.031 + 15.982 + 33.632 + 36.77 = $110.4 Mil.
Non Operating Income was 1.513 + -0.098 + -0.908 + -0.442 = $0.1 Mil.
Cash Flow from Operations was 52.597 + 6.981 + 40.933 + 11.249 = $111.8 Mil.
Accounts Receivable was $84.1 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.



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)
=(81.222 / 724.92) / (84.137 / 737.114)
=0.11204271 / 0.11414381
=0.9816

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)
=(133.972 / 737.114) / (146.541 / 724.92)
=0.87244985 / 0.82024775
=1.0636

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 - (320.088 + 46.458) / 781.854) / (1 - (454.506 + 31.313) / 756.681)
=0.53118357 / 0.35796062
=1.4839

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
=724.92 / 737.114
=0.9835

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))
=(9.245 / (9.245 + 31.313)) / (20.998 / (20.998 + 46.458))
=0.22794516 / 0.31128439
=0.7323

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)
=(350.111 / 724.92) / (291.266 / 737.114)
=0.48296502 / 0.39514376
=1.2223

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 + 59.837) / 781.854) / ((0 + 67.392) / 756.681)
=0.07653219 / 0.08906263
=0.8593

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
=(110.415 - 0.065 - 111.76) / 781.854
=-0.0018

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 -2.31 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

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 0.84670.8711.08650.92180.74890.96470.94850.97461.26250.679
GMI 1.00510.99380.9430.94040.98550.98820.99331.01630.99941.0122
AQI 0.1730.522316.10620.70530.90350.97721.70561.27281.02941.5586
SGI 1.45471.38681.37491.41831.46521.11061.10871.23361.23621.2692
DEPI 1.0060.96561.10441.0280.7681.2620.97980.87481.1180.8534
SGAI 0.86010.80181.10041.06170.85841.04650.9490.99460.97761.0234
LVGI 1.82970.6620.9661.57540.46740.67051.21721.15661.23261.2188
TATA -0.0921-0.0367-0.026-0.11130.0066-0.0049-0.0487-0.0423-0.033-0.0146
M-score -3.22-2.483.89-3.05-2.14-2.32-2.44-2.44-2.23-2.46

Myriad Genetics Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.13041.42811.50411.26251.04940.82370.66480.6790.80460.9816
GMI 1.0131.011.00250.99940.99810.99611.00131.01221.03641.0636
AQI 1.20421.05030.95151.02941.08121.10211.56381.55861.4221.4839
SGI 1.23371.23081.21591.23621.31451.35171.33491.26921.09150.9835
DEPI 0.91471.00131.05331.1181.18291.09591.02480.85340.79630.7323
SGAI 1.00321.00370.99560.97760.95090.94940.9941.02341.12521.2223
LVGI 1.61561.19581.38811.23261.23931.40531.20161.21880.8280.8593
TATA -0.0622-0.0441-0.0273-0.033-0.0512-0.0659-0.0301-0.01460.0391-0.0018
M-score -2.56-2.13-2.09-2.23-2.41-2.71-2.46-2.46-2.19-2.31
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