Switch to:
GuruFocus has detected 6 Warning Signs with Myriad Genetics Inc $MYGN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.90 (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 -2.90 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: -2.9

-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 * 1.2693+0.528 * 1.0204+0.404 * 1.3832+0.892 * 1.0056+0.115 * 0.766
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1273+4.679 * -0.0313-0.327 * 2.9729
=-2.90

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $107.6 Mil.
Revenue was 196.5 + 177.5 + 186.4 + 190.5 = $750.9 Mil.
Gross Profit was 152.1 + 137.5 + 146.4 + 150.3 = $586.3 Mil.
Total Current Assets was $341.6 Mil.
Total Assets was $1,276.1 Mil.
Property, Plant and Equipment(Net PPE) was $54.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $35.3 Mil.
Selling, General & Admin. Expense(SGA) was $414.0 Mil.
Total Current Liabilities was $82.8 Mil.
Long-Term Debt was $204.0 Mil.
Net Income was 5.9 + -1.2 + 35.7 + 32.6 = $73.0 Mil.
Non Operating Income was 1.2 + -2.5 + 1.2 + 0.2 = $0.1 Mil.
Cash Flow from Operations was 31.4 + -2.9 + 56.4 + 28 = $112.9 Mil.
Accounts Receivable was $84.3 Mil.
Revenue was 193.3 + 183.5 + 189.9 + 180 = $746.7 Mil.
Gross Profit was 152.7 + 147 + 151.5 + 143.7 = $594.9 Mil.
Total Current Assets was $375.5 Mil.
Total Assets was $871.7 Mil.
Property, Plant and Equipment(Net PPE) was $61.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.5 Mil.
Selling, General & Admin. Expense(SGA) was $365.2 Mil.
Total Current Liabilities was $65.9 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)
=(107.6 / 750.9) / (84.3 / 746.7)
=0.14329471 / 0.11289675
=1.2693

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)
=(594.9 / 746.7) / (586.3 / 750.9)
=0.7967055 / 0.78079638
=1.0204

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 - (341.6 + 54.7) / 1276.1) / (1 - (375.5 + 61.7) / 871.7)
=0.6894444 / 0.4984513
=1.3832

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
=750.9 / 746.7
=1.0056

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))
=(26.5 / (26.5 + 61.7)) / (35.3 / (35.3 + 54.7))
=0.30045351 / 0.39222222
=0.766

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)
=(414 / 750.9) / (365.2 / 746.7)
=0.55133839 / 0.48908531
=1.1273

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)
=((204 + 82.8) / 1276.1) / ((0 + 65.9) / 871.7)
=0.22474728 / 0.0755994
=2.9729

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
=(73 - 0.1 - 112.9) / 1276.1
=-0.0313

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 -2.90 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 local exchange's 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

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 0.80470.98171.17941.12741.11151.00760.94211.02541.16191.2693
GMI 1.03631.06371.07761.081.05361.02941.01461.0061.01651.0204
AQI 1.4221.48391.00550.95680.99110.93840.91471.06351.33051.3832
SGI 1.09130.98330.94550.92920.9911.03011.04881.04231.01341.0056
DEPI 0.79620.73320.95011.05151.00681.03570.83690.86320.83970.766
SGAI 1.12541.22241.19061.20421.10511.01270.98220.94131.03351.1273
LVGI 0.8280.85930.97560.91640.89550.98780.8830.91582.88532.9729
TATA 0.0392-0.0018-0.0457-0.0792-0.0882-0.0621-0.0478-0.0362-0.0221-0.0313
M-score -2.19-2.31-2.56-2.77-2.76-2.74-2.72-2.54-2.92-2.90
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK