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Omnicell Inc (NAS:OMCL)
Beneish M-Score
-2.28 (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 -2.28 suggests that the company is not a manipulator.

OMCL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -1.37
Current: -2.28

-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 -2.27.


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 * 1.2476+0.528 * 1.0296+0.404 * 1.1206+0.892 * 1.1389+0.115 * 0.8369
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9712+4.679 * -0.0305-0.327 * 1.1966
=-2.28

* 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 $117.3 Mil.
Revenue was 112.788 + 116.221 + 121.541 + 112.543 = $463.1 Mil.
Gross Profit was 57.462 + 61.685 + 63.779 + 59.546 = $242.5 Mil.
Total Current Assets was $285.3 Mil.
Total Assets was $601.0 Mil.
Property, Plant and Equipment(Net PPE) was $34.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.9 Mil.
Selling, General & Admin. Expense(SGA) was $164.1 Mil.
Total Current Liabilities was $138.3 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 8.751 + 6.318 + 9.236 + 7.3 = $31.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -1.124 + 11.314 + 30.848 + 8.894 = $49.9 Mil.
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.



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)
=(117.307 / 463.093) / (82.56 / 406.605)
=0.25331197 / 0.20304718
=1.2476

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)
=(61.685 / 406.605) / (57.462 / 463.093)
=0.53909568 / 0.52359245
=1.0296

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 - (285.324 + 34.772) / 601.022) / (1 - (275.896 + 37.257) / 537.251)
=0.46741384 / 0.41711974
=1.1206

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
=463.093 / 406.605
=1.1389

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))
=(18.512 / (18.512 + 37.257)) / (22.858 / (22.858 + 34.772))
=0.33194068 / 0.3966337
=0.8369

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)
=(164.066 / 463.093) / (148.322 / 406.605)
=0.35428305 / 0.36478154
=0.9712

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 + 138.275) / 601.022) / ((0 + 103.294) / 537.251)
=0.23006645 / 0.19226395
=1.1966

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
=(31.605 - 0 - 49.932) / 601.022
=-0.0305

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 -2.28 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.36760.90720.80081.30720.83091.00460.78221.16780.87721.2192
GMI 1.05210.99761.03951.04121.03610.92970.95871.0181.01641.0076
AQI 0.88840.97321.44071.08570.82860.97210.98842.95460.88330.9467
SGI 0.98051.27311.37731.1820.84751.04191.1041.2791.21191.1585
DEPI 0.89111.13181.33540.87370.85541.111.18871.12370.82020.9538
SGAI 1.1690.85580.89340.98411.08580.9661.02440.960.95780.9718
LVGI 0.76740.99170.50831.05590.97740.93270.95941.15650.99781.0687
TATA -0.0027-0.05970.0186-0.001-0.1322-0.0458-0.0567-0.0528-0.0632-0.0618
M-score -2.15-2.57-1.82-2.01-3.46-2.66-2.85-1.55-2.75-2.47

Omnicell Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.26331.03380.94680.87720.97971.131.27681.21921.0131.2476
GMI 1.03591.0181.01931.01640.99450.9931.00771.00761.01581.0296
AQI 2.83680.87550.8390.88330.89130.87610.99290.94670.95711.1206
SGI 1.33451.33121.27271.21191.17281.14441.16471.15851.15211.1389
DEPI 1.07370.73710.75390.82020.89431.01121.02370.95380.89910.8369
SGAI 0.98020.92560.95710.95780.96521.00650.97510.97180.97140.9712
LVGI 1.12351.03611.05180.99780.9641.02531.04111.06871.05441.1966
TATA -0.0418-0.0426-0.0594-0.0632-0.0495-0.0572-0.0376-0.0618-0.0783-0.0305
M-score -1.40-2.42-2.66-2.75-2.62-2.56-2.26-2.47-2.73-2.28
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