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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 10-Year Beneish M-Score Range
Min: -4.5   Max: 3.89
Current: -2.77

-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 * 1.1275+0.528 * 1.0798+0.404 * 0.9568+0.892 * 0.9292+0.115 * 1.0515
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2042+4.679 * -0.0791-0.327 * 0.9164
=-2.77

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $85.8 Mil.
Revenue was 189.884 + 179.985 + 184.393 + 168.837 = $723.1 Mil.
Gross Profit was 151.495 + 143.692 + 146.541 + 133.972 = $575.7 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.
Net Income was 18.712 + 21.475 + 24.031 + 15.982 = $80.2 Mil.
Non Operating Income was -0.817 + -0.298 + 1.513 + -0.098 = $0.3 Mil.
Cash Flow from Operations was 51.044 + 29.878 + 52.597 + 6.981 = $140.5 Mil.
Accounts Receivable was $81.9 Mil.
Revenue was 188.75 + 182.924 + 204.06 + 202.467 = $778.2 Mil.
Gross Profit was 157.771 + 156.315 + 177.929 + 176.986 = $669.0 Mil.
Total Current Assets was $322.4 Mil.
Total Assets was $823.8 Mil.
Property, Plant and Equipment(Net PPE) was $34.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.8 Mil.
Selling, General & Admin. Expense(SGA) was $327.1 Mil.
Total Current Liabilities was $80.6 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)
=(85.8 / 723.099) / (81.9 / 778.201)
=0.11865595 / 0.10524273
=1.1275

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)
=(143.692 / 778.201) / (151.495 / 723.099)
=0.85967636 / 0.79615654
=1.0798

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 - (283.6 + 67.2) / 766.2) / (1 - (322.4 + 34.6) / 823.8)
=0.5421561 / 0.56664239
=0.9568

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
=723.099 / 778.201
=0.9292

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))
=(13.8 / (13.8 + 34.6)) / (25 / (25 + 67.2))
=0.28512397 / 0.27114967
=1.0515

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)
=(365.999 / 723.099) / (327.098 / 778.201)
=0.50615338 / 0.42032585
=1.2042

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 + 68.7) / 766.2) / ((0 + 80.6) / 823.8)
=0.08966327 / 0.09783928
=0.9164

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
=(80.2 - 0.3 - 140.5) / 766.2
=-0.0791

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 0.8711.08650.92180.74890.96470.94850.97461.26250.68411.1275
GMI 0.99380.9430.94040.98550.98820.99331.01630.99941.01221.0798
AQI 0.522316.10620.70530.90350.97721.70561.27281.02941.55860.9568
SGI 1.38681.37491.41831.46521.11061.10871.23361.23621.26920.9292
DEPI 0.96561.10441.0280.7681.2620.97980.87481.1180.85351.0526
SGAI 0.80181.10041.06170.85841.04650.9490.99460.97761.02341.2042
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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.50411.26251.04940.82370.66480.68410.80460.98161.17941.1275
GMI 1.00250.99940.99810.99611.00131.01221.03641.06361.07761.0798
AQI 0.95151.02941.08121.10211.56381.55861.4221.48391.00550.9568
SGI 1.21591.23621.31451.35171.33491.26921.09140.98340.94550.9292
DEPI 1.05331.1181.18291.09591.02480.85430.7970.73270.94971.0515
SGAI 0.99560.97760.95090.94940.9941.02341.12521.22231.19041.2042
LVGI 1.38811.23261.23931.40531.20161.21910.8280.85930.97560.9164
TATA -0.0273-0.033-0.0512-0.0659-0.0301-0.01460.0392-0.0018-0.0455-0.0791
M-score -2.09-2.23-2.41-2.71-2.46-2.46-2.19-2.31-2.56-2.77
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