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Omnicell Inc (NAS:OMCL)
Beneish M-Score
-2.30 (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 -2.30 suggests that the company is not a manipulator.

OMCL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -1.37
Current: -2.3

-3.88
-1.37

During the past 13 years, the highest Beneish M-Score of Omnicell Inc was -1.37. The lowest was -3.88. 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 * 1.0861+0.528 * 1.0288+0.404 * 1.1125+0.892 * 1.1192+0.115 * 0.8194
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9722+4.679 * -0.0077-0.327 * 1.0433
=-2.30

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $115.7 Mil.
Revenue was 125.234 + 112.788 + 116.221 + 121.541 = $475.8 Mil.
Gross Profit was 63.703 + 57.462 + 61.685 + 63.779 = $246.6 Mil.
Total Current Assets was $259.9 Mil.
Total Assets was $576.7 Mil.
Property, Plant and Equipment(Net PPE) was $34.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.0 Mil.
Selling, General & Admin. Expense(SGA) was $165.9 Mil.
Total Current Liabilities was $122.6 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 8.036 + 8.751 + 6.318 + 9.236 = $32.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -4.258 + -1.124 + 11.314 + 30.848 = $36.8 Mil.
Accounts Receivable was $95.2 Mil.
Revenue was 112.543 + 105.052 + 101.764 + 105.75 = $425.1 Mil.
Gross Profit was 59.546 + 56.04 + 54.495 + 56.624 = $226.7 Mil.
Total Current Assets was $268.4 Mil.
Total Assets was $547.3 Mil.
Property, Plant and Equipment(Net PPE) was $37.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.3 Mil.
Selling, General & Admin. Expense(SGA) was $152.4 Mil.
Total Current Liabilities was $111.6 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)
=(115.68 / 475.784) / (95.167 / 425.109)
=0.24313554 / 0.22386494
=1.0861

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)
=(57.462 / 425.109) / (63.703 / 475.784)
=0.53328676 / 0.51836337
=1.0288

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 - (259.886 + 34.026) / 576.722) / (1 - (268.368 + 37.688) / 547.313)
=0.49037491 / 0.44080261
=1.1125

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
=475.784 / 425.109
=1.1192

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))
=(19.338 / (19.338 + 37.688)) / (24.024 / (24.024 + 34.026))
=0.33910848 / 0.41385013
=0.8194

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)
=(165.863 / 475.784) / (152.431 / 425.109)
=0.34860987 / 0.35856921
=0.9722

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 + 122.644) / 576.722) / ((0 + 111.56) / 547.313)
=0.21265705 / 0.20383218
=1.0433

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
=(32.341 - 0 - 36.78) / 576.722
=-0.0077

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 -2.30 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.90720.80081.30720.83091.00460.81951.11470.87721.21921.1869
GMI 0.99761.03951.04121.03610.92970.95871.0181.01641.00761.0367
AQI 0.97321.44071.08570.82861.03460.92432.9690.88330.94671.1355
SGI 1.27311.37731.1820.84751.04191.1041.2791.21191.15851.099
DEPI 1.13181.33540.87370.85541.111.18871.12370.82020.95380.8117
SGAI 0.85580.89340.98411.08580.9661.02440.960.95780.97180.9745
LVGI 0.99170.50831.05590.97740.93270.98331.12840.99781.06871.074
TATA -0.05970.0186-0.001-0.1416-0.0458-0.0564-0.0528-0.0635-0.0618-0.0052
M-score -2.57-1.82-2.01-3.51-2.64-2.85-1.59-2.75-2.47-2.21

Omnicell Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.94680.87720.97971.131.27681.21921.0131.24761.08611.1869
GMI 1.01931.01640.99450.9931.00771.00761.01581.02961.02881.0367
AQI 0.8390.88330.89130.87610.99290.94670.95711.12061.11251.1355
SGI 1.27271.21191.17281.14441.16471.15851.15211.13891.11921.099
DEPI 0.75390.82020.89431.01121.02370.95380.89910.83690.81940.8117
SGAI 0.95710.95780.96521.00650.97510.97180.97140.97120.97220.9745
LVGI 1.05180.99780.9641.02531.04111.06871.05441.19661.04331.074
TATA -0.0594-0.0635-0.0499-0.0575-0.0379-0.0618-0.0783-0.0305-0.0077-0.0052
M-score -2.66-2.75-2.62-2.56-2.26-2.47-2.73-2.28-2.30-2.21
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