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Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

MYGN' s 10-Year Beneish M-Score Range
Min: -4.5   Max: 9.51
Current: -2.45

-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 -2.42.


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 * 0.6749+0.528 * 1.0013+0.404 * 1.5638+0.892 * 1.3349+0.115 * 1.0248
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.994+4.679 * -0.0301-0.327 * 1.2016
=-2.45

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $85.9 Mil.
Revenue was 182.924 + 204.06 + 202.467 + 174.115 = $763.6 Mil.
Gross Profit was 156.315 + 177.929 + 176.986 + 152.042 = $663.3 Mil.
Total Current Assets was $338.2 Mil.
Total Assets was $816.4 Mil.
Property, Plant and Equipment(Net PPE) was $32.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.5 Mil.
Selling, General & Admin. Expense(SGA) was $314.3 Mil.
Total Current Liabilities was $72.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 36.77 + 50.36 + 55.465 + 44.074 = $186.7 Mil.
Non Operating Income was -0.442 + -0.185 + -0.439 + 0.001 = $-1.1 Mil.
Cash Flow from Operations was 11.249 + 47.549 + 90.482 + 63 = $212.3 Mil.
Accounts Receivable was $95.4 Mil.
Revenue was 156.472 + 149.14 + 133.437 + 132.965 = $572.0 Mil.
Gross Profit was 136.138 + 129.256 + 116.11 + 116.013 = $497.5 Mil.
Total Current Assets was $447.7 Mil.
Total Assets was $729.0 Mil.
Property, Plant and Equipment(Net PPE) was $26.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General & Admin. Expense(SGA) was $236.9 Mil.
Total Current Liabilities was $53.6 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)
=(85.904 / 763.566) / (95.359 / 572.014)
=0.1125037 / 0.16670746
=0.6749

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)
=(177.929 / 572.014) / (156.315 / 763.566)
=0.86976368 / 0.86865052
=1.0013

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 - (338.164 + 32.665) / 816.426) / (1 - (447.705 + 26.875) / 729.028)
=0.54578982 / 0.34902363
=1.5638

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
=763.566 / 572.014
=1.3349

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))
=(8.963 / (8.963 + 26.875)) / (10.545 / (10.545 + 32.665))
=0.25009766 / 0.24404073
=1.0248

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)
=(314.295 / 763.566) / (236.877 / 572.014)
=0.41161471 / 0.41411049
=0.994

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 + 72.156) / 816.426) / ((0 + 53.621) / 729.028)
=0.08838033 / 0.07355136
=1.2016

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
=(186.669 - -1.065 - 212.28) / 816.426
=-0.0301

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 -2.45 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.92840.90791.0061.14931.41131.49531.25251.03880.84660.6749
GMI 1.00261.01271.01631.0131.011.00250.99940.99810.99611.0013
AQI 1.45821.69871.27281.20421.05030.95151.02941.08121.10211.5638
SGI 1.1751.21061.23361.23371.23081.21591.23621.31451.35171.3349
DEPI 0.94710.95090.87480.91471.00131.05331.1181.18291.09591.0248
SGAI 0.95430.97510.99461.00321.00370.99560.97760.95090.94940.994
LVGI 1.35681.26341.15661.61561.19581.38811.23261.23931.40531.2016
TATA -0.0243-0.0388-0.0423-0.0622-0.0441-0.0273-0.033-0.0512-0.0659-0.0301
M-score -2.43-2.36-2.41-2.55-2.14-2.10-2.24-2.42-2.69-2.45
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