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Omnicell Inc (NAS:OMCL)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

OMCL' s 10-Year Beneish M-Score Range
Min: -3.93   Max: -1.23
Current: -2.62

-3.93
-1.23

During the past 14 years, the highest Beneish M-Score of Omnicell Inc was -1.23. The lowest was -3.93. And the median was -2.30.


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 * 0.9797+0.528 * 0.9945+0.404 * 0.8913+0.892 * 1.1728+0.115 * 0.8943
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9652+4.679 * -0.0495-0.327 * 0.964
=-2.62

* 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 $75.5 Mil.
Revenue was 101.764 + 105.75 + 94.039 + 93.686 = $395.2 Mil.
Gross Profit was 54.495 + 56.624 + 52.04 + 49.368 = $212.5 Mil.
Total Current Assets was $250.8 Mil.
Total Assets was $510.4 Mil.
Property, Plant and Equipment(Net PPE) was $35.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General & Admin. Expense(SGA) was $144.2 Mil.
Total Current Liabilities was $92.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 6.194 + 6.823 + 7.755 + 6.016 = $26.8 Mil.
Non Operating Income was 0 + -0.178 + 0 + 0 = $-0.2 Mil.
Cash Flow from Operations was 1.117 + 14.526 + 19.509 + 17.096 = $52.2 Mil.
Accounts Receivable was $65.7 Mil.
Revenue was 87.11 + 90.169 + 84.331 + 75.384 = $337.0 Mil.
Gross Profit was 45.367 + 49.376 + 46.087 + 39.376 = $180.2 Mil.
Total Current Assets was $197.1 Mil.
Total Assets was $457.4 Mil.
Property, Plant and Equipment(Net PPE) was $34.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.5 Mil.
Selling, General & Admin. Expense(SGA) was $127.4 Mil.
Total Current Liabilities was $85.6 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)
=(75.496 / 395.239) / (65.703 / 336.994)
=0.19101354 / 0.19496786
=0.9797

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)
=(56.624 / 336.994) / (54.495 / 395.239)
=0.53474543 / 0.53771768
=0.9945

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 - (250.842 + 35.178) / 510.405) / (1 - (197.086 + 34.697) / 457.357)
=0.43962148 / 0.49321209
=0.8913

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
=395.239 / 336.994
=1.1728

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))
=(15.462 / (15.462 + 34.697)) / (18.505 / (18.505 + 35.178))
=0.30825973 / 0.34470875
=0.8943

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)
=(144.17 / 395.239) / (127.36 / 336.994)
=0.36476663 / 0.37792958
=0.9652

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 + 92.1) / 510.405) / ((0 + 85.611) / 457.357)
=0.18044494 / 0.18718638
=0.964

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
=(26.788 - -0.178 - 52.248) / 510.405
=-0.0495

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 -2.62 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 1.18571.20920.90720.80081.30720.83091.00460.81951.1147
GMI 1.0071.05210.99761.03951.04121.03610.92970.95871.018
AQI 0.84740.88840.97321.44071.08570.82861.03460.92432.969
SGI 1.21360.98051.27311.37731.1820.84751.04191.1041.279
DEPI 1.00260.89111.13181.33540.87370.85541.111.18871.1237
SGAI 1.00321.1690.85580.89340.98411.08580.9661.02440.96
LVGI 0.87080.76740.99170.50831.05590.97740.93270.98331.1284
TATA 0.1496-0.0027-0.05970.0186-0.001-0.1416-0.0458-0.0573-0.0525
M-score -1.43-2.30-2.57-1.82-2.01-3.51-2.64-2.85-1.59

Omnicell Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.81950.87420.93440.96591.11471.26331.03380.94680.87720.9797
GMI 0.95870.97691.00510.99881.0181.03591.0181.01931.01640.9945
AQI 0.92430.96973.07393.11192.9692.83680.87550.8390.88330.8913
SGI 1.1041.12031.15181.19561.2791.33451.33121.27271.21191.1728
DEPI 1.18871.06461.34191.22241.12371.07370.73710.75390.82020.8943
SGAI 1.02440.96030.96150.9390.960.98020.92560.95710.95780.9652
LVGI 0.98330.98351.07671.09271.12841.12351.03611.05180.99780.964
TATA -0.0573-0.0624-0.0788-0.0694-0.0525-0.0416-0.0424-0.0592-0.0632-0.0495
M-score -2.85-2.79-1.91-1.80-1.59-1.40-2.42-2.66-2.75-2.62
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