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Omnicell Inc (NAS:OMCL)
Beneish M-Score
-2.56 (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.

Omnicell Inc has a M-score of -2.56 suggests that the company is not a manipulator.

OMCL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -1.37
Current: -2.56

-3.93
-1.37

During the past 13 years, the highest Beneish M-Score of Omnicell Inc was -1.37. The lowest was -3.93. And the median was -2.23.


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 Omnicell 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 * 1.13+0.528 * 0.993+0.404 * 0.8761+0.892 * 1.1444+0.115 * 1.0112
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0065+4.679 * -0.0572-0.327 * 1.0253
=-2.56

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $82.6 Mil.
Revenue was 105.052 + 101.764 + 105.75 + 94.039 = $406.6 Mil.
Gross Profit was 56.04 + 54.495 + 56.624 + 52.04 = $219.2 Mil.
Total Current Assets was $275.9 Mil.
Total Assets was $537.3 Mil.
Property, Plant and Equipment(Net PPE) was $37.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General & Admin. Expense(SGA) was $148.3 Mil.
Total Current Liabilities was $103.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 7.789 + 6.194 + 6.823 + 7.755 = $28.6 Mil.
Non Operating Income was 0 + 0 + -0.178 + 0 = $-0.2 Mil.
Cash Flow from Operations was 24.304 + 1.117 + 14.526 + 19.509 = $59.5 Mil.
Accounts Receivable was $63.8 Mil.
Revenue was 93.686 + 87.11 + 90.169 + 84.331 = $355.3 Mil.
Gross Profit was 49.368 + 45.367 + 49.376 + 46.087 = $190.2 Mil.
Total Current Assets was $213.2 Mil.
Total Assets was $472.1 Mil.
Property, Plant and Equipment(Net PPE) was $34.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.2 Mil.
Selling, General & Admin. Expense(SGA) was $128.8 Mil.
Total Current Liabilities was $88.5 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)
=(82.56 / 406.605) / (63.84 / 355.296)
=0.20304718 / 0.17968117
=1.13

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)
=(54.495 / 355.296) / (56.04 / 406.605)
=0.53532266 / 0.53909568
=0.993

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 - (275.896 + 37.257) / 537.251) / (1 - (213.221 + 34.114) / 472.128)
=0.41711974 / 0.47612724
=0.8761

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
=406.605 / 355.296
=1.1444

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))
=(17.236 / (17.236 + 34.114)) / (18.512 / (18.512 + 37.257))
=0.33565725 / 0.33194068
=1.0112

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)
=(148.322 / 406.605) / (128.773 / 355.296)
=0.36478154 / 0.36243864
=1.0065

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 + 103.294) / 537.251) / ((0 + 88.535) / 472.128)
=0.19226395 / 0.1875233
=1.0253

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
=(28.561 - -0.178 - 59.456) / 537.251
=-0.0572

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.

Omnicell Inc has a M-score of -2.56 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.

Omnicell Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.24591.36760.90720.80081.30720.83091.00460.81951.11470.8772
GMI 1.0071.05210.99761.03951.04121.03610.92970.95871.0181.0164
AQI 0.84740.88840.97321.44071.08570.82861.03460.92432.9690.8833
SGI 1.21360.98051.27311.37731.1820.84751.04191.1041.2791.2119
DEPI 1.00260.89111.13181.33540.87370.85541.111.18871.12370.8202
SGAI 1.00321.1690.85580.89340.98411.08580.9661.02440.960.9578
LVGI 0.87080.76740.99170.50831.05590.97740.93270.98331.12840.9978
TATA 0.1496-0.0027-0.05970.0186-0.001-0.1416-0.0458-0.0573-0.0525-0.0632
M-score -1.38-2.15-2.57-1.82-2.01-3.51-2.64-2.85-1.59-2.75

Omnicell Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.87420.93440.96591.11471.26331.03380.94680.87720.97971.13
GMI 0.97691.00510.99881.0181.03591.0181.01931.01640.99450.993
AQI 0.96973.07393.11192.9692.83680.87550.8390.88330.89130.8761
SGI 1.12031.15181.19561.2791.33451.33121.27271.21191.17281.1444
DEPI 1.06461.34191.22241.12371.07370.73710.75390.82020.89431.0112
SGAI 0.96030.96150.9390.960.98020.92560.95710.95780.96521.0065
LVGI 0.98351.07671.09271.12841.12351.03611.05180.99780.9641.0253
TATA -0.0624-0.0788-0.0694-0.0525-0.0416-0.0424-0.0592-0.0632-0.0495-0.0572
M-score -2.79-1.91-1.80-1.59-1.40-2.42-2.66-2.75-2.62-2.56
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