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Myriad Genetics Inc (NAS:MYGN)
Beneish M-Score
-2.19 (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 -2.19 signals that the company is a manipulator.

MYGN' s 10-Year Beneish M-Score Range
Min: -4.5   Max: 9.51
Current: -2.19

-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 -2.43.


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 * 0.8046+0.528 * 1.0364+0.404 * 1.422+0.892 * 1.0915+0.115 * 0.7963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1252+4.679 * 0.0391-0.327 * 0.828
=-2.19

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $75.7 Mil.
Revenue was 168.837 + 188.766 + 182.924 + 204.06 = $744.6 Mil.
Gross Profit was 133.972 + 157.786 + 156.315 + 177.929 = $626.0 Mil.
Total Current Assets was $335.4 Mil.
Total Assets was $809.0 Mil.
Property, Plant and Equipment(Net PPE) was $43.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.4 Mil.
Selling, General & Admin. Expense(SGA) was $335.3 Mil.
Total Current Liabilities was $67.7 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 15.982 + 33.632 + 36.77 + 50.36 = $136.7 Mil.
Non Operating Income was -0.098 + -0.908 + -0.442 + -0.185 = $-1.6 Mil.
Cash Flow from Operations was 6.981 + 40.933 + 11.249 + 47.549 = $106.7 Mil.
Accounts Receivable was $86.2 Mil.
Revenue was 202.467 + 174.115 + 156.472 + 149.14 = $682.2 Mil.
Gross Profit was 176.986 + 152.042 + 136.138 + 129.256 = $594.4 Mil.
Total Current Assets was $458.7 Mil.
Total Assets was $781.7 Mil.
Property, Plant and Equipment(Net PPE) was $30.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.1 Mil.
Selling, General & Admin. Expense(SGA) was $273.0 Mil.
Total Current Liabilities was $79.0 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)
=(75.717 / 744.587) / (86.218 / 682.194)
=0.10168993 / 0.1263834
=0.8046

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)
=(157.786 / 682.194) / (133.972 / 744.587)
=0.87133865 / 0.84073721
=1.0364

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 - (335.366 + 43.424) / 809.006) / (1 - (458.675 + 30.675) / 781.658)
=0.53178345 / 0.37395894
=1.422

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
=744.587 / 682.194
=1.0915

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))
=(9.05 / (9.05 + 30.675)) / (17.401 / (17.401 + 43.424))
=0.22781624 / 0.28608303
=0.7963

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)
=(335.256 / 744.587) / (272.989 / 682.194)
=0.45025766 / 0.4001633
=1.1252

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 + 67.725) / 809.006) / ((0 + 79.03) / 781.658)
=0.08371384 / 0.1011056
=0.828

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
=(136.744 - -1.633 - 106.712) / 809.006
=0.0391

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 -2.19 signals that the company is likely to 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.97461.13041.42811.50411.26251.04940.82370.66480.6790.8046
GMI 1.01631.0131.011.00250.99940.99810.99611.00131.01221.0364
AQI 1.27281.20421.05030.95151.02941.08121.10211.56381.55861.422
SGI 1.23361.23371.23081.21591.23621.31451.35171.33491.26921.0915
DEPI 0.87480.91471.00131.05331.1181.18291.09591.02480.85340.7963
SGAI 0.99461.00321.00370.99560.97760.95090.94940.9941.02341.1252
LVGI 1.15661.61561.19581.38811.23261.23931.40531.20161.21880.828
TATA -0.0423-0.0622-0.0441-0.0273-0.033-0.0512-0.0659-0.0301-0.01460.0391
M-score -2.44-2.56-2.13-2.09-2.23-2.41-2.71-2.46-2.46-2.19
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