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Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.77 (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 -2.77 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: -2.77

-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 -2.44.


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 * 0.9421+0.528 * 1.0146+0.404 * 0.9147+0.892 * 1.0488+0.115 * 0.8369
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9822+4.679 * -0.0598-0.327 * 0.883
=-2.77

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $91.1 Mil.
Revenue was 190.5 + 193.3 + 183.5 + 189.9 = $757.2 Mil.
Gross Profit was 150.3 + 152.7 + 147 + 151.5 = $601.5 Mil.
Total Current Assets was $372.4 Mil.
Total Assets was $868.2 Mil.
Property, Plant and Equipment(Net PPE) was $60.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.6 Mil.
Selling, General & Admin. Expense(SGA) was $364.4 Mil.
Total Current Liabilities was $66.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 32.6 + 30.3 + 26.6 + 18.7 = $108.2 Mil.
Non Operating Income was 0.2 + -0.3 + 0.1 + -0.8 = $-0.8 Mil.
Cash Flow from Operations was 44.1 + 40.9 + 24.9 + 51 = $160.9 Mil.
Accounts Receivable was $92.2 Mil.
Revenue was 180 + 184.4 + 168.8 + 188.75 = $722.0 Mil.
Gross Profit was 143.7 + 146.5 + 133.9 + 157.771 = $581.9 Mil.
Total Current Assets was $282.4 Mil.
Total Assets was $779.0 Mil.
Property, Plant and Equipment(Net PPE) was $69.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.9 Mil.
Selling, General & Admin. Expense(SGA) was $353.7 Mil.
Total Current Liabilities was $67.2 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)
=(91.1 / 757.2) / (92.195 / 721.95)
=0.12031167 / 0.12770275
=0.9421

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)
=(581.871 / 721.95) / (601.5 / 757.2)
=0.80597133 / 0.79437401
=1.0146

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 - (372.4 + 60) / 868.2) / (1 - (282.424 + 69.099) / 779.049)
=0.50195807 / 0.54877935
=0.9147

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
=757.2 / 721.95
=1.0488

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))
=(23.909 / (23.909 + 69.099)) / (26.6 / (26.6 + 60))
=0.25706391 / 0.30715935
=0.8369

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)
=(364.4 / 757.2) / (353.748 / 721.95)
=0.4812467 / 0.48998961
=0.9822

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 + 66.1) / 868.2) / ((0 + 67.173) / 779.049)
=0.07613453 / 0.08622436
=0.883

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
=(108.2 - -0.8 - 160.9) / 868.2
=-0.0598

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 -2.77 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 0.8711.08650.61571.12110.96470.94850.97461.26250.68411.1275
GMI 0.99380.9430.89021.0410.98820.99331.01630.99941.01221.0798
AQI 0.522316.10620.70530.90350.97721.70561.27281.02941.55860.9568
SGI 1.38681.37492.12330.97871.11061.10871.23361.23621.26920.9292
DEPI 0.96561.10441.0280.7681.2620.97980.87481.1180.85351.0526
SGAI 0.80181.10040.79311.14911.04650.9490.99460.97761.02341.2042
LVGI 0.6620.9661.57540.46740.67051.21721.15661.23261.21910.9164
TATA -0.0367-0.026-0.10520.0066-0.0049-0.0486-0.0424-0.033-0.0146-0.0791
M-score -2.483.89-2.65-2.25-2.32-2.44-2.44-2.23-2.46-2.77

Myriad Genetics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.82370.66470.68410.80470.98171.17941.12741.11151.00760.9421
GMI 0.99631.00141.0121.03631.06371.07761.081.05361.02941.0146
AQI 1.10211.56381.55861.4221.48391.00550.95680.99110.93840.9147
SGI 1.35181.33491.26911.09130.98330.94550.92920.9911.03011.0488
DEPI 1.09491.0240.85510.79620.73320.95011.05151.00681.03570.8369
SGAI 0.94920.99381.02361.12541.22241.19061.20421.10511.01270.9822
LVGI 1.40531.20161.21910.8280.85930.97560.91640.89550.98780.883
TATA -0.0659-0.0301-0.01460.0392-0.0018-0.0457-0.0792-0.0867-0.0555-0.0598
M-score -2.71-2.46-2.46-2.19-2.31-2.56-2.77-2.75-2.71-2.77
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