Switch to:
GuruFocus has detected 6 Warning Signs with Omnicell Inc $OMCL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Omnicell Inc (NAS:OMCL)
Beneish M-Score
-2.54 (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 -2.54 suggests that the company is not a manipulator.

OMCL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Max: -1.38
Current: -2.54

-3.51
-1.38

During the past 13 years, the highest Beneish M-Score of Omnicell Inc was -1.38. The lowest was -3.51. And the median was -2.33.


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 * 0.974+0.528 * 1.1293+0.404 * 1.2665+0.892 * 1.4294+0.115 * 0.7609
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0417+4.679 * -0.0416-0.327 * 2.1187
=-2.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $150.3 Mil.
Revenue was 171.975 + 176.737 + 172.907 + 171.004 = $692.6 Mil.
Gross Profit was 74.33 + 81.508 + 78.017 + 79.945 = $313.8 Mil.
Total Current Assets was $315.4 Mil.
Total Assets was $935.1 Mil.
Property, Plant and Equipment(Net PPE) was $42.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $58.4 Mil.
Selling, General & Admin. Expense(SGA) was $249.5 Mil.
Total Current Liabilities was $180.9 Mil.
Long-Term Debt was $245.7 Mil.
Net Income was 0.157 + 1.983 + -1.159 + -0.378 = $0.6 Mil.
Non Operating Income was -1.656 + -2.721 + -1.881 + -2.171 = $-8.4 Mil.
Cash Flow from Operations was 23.467 + 8.517 + -5.834 + 21.787 = $47.9 Mil.
Accounts Receivable was $108.0 Mil.
Revenue was 130.316 + 125.234 + 112.788 + 116.221 = $484.6 Mil.
Gross Profit was 65.08 + 63.703 + 57.462 + 61.685 = $247.9 Mil.
Total Current Assets was $264.1 Mil.
Total Assets was $578.7 Mil.
Property, Plant and Equipment(Net PPE) was $32.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.6 Mil.
Selling, General & Admin. Expense(SGA) was $167.6 Mil.
Total Current Liabilities was $124.6 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)
=(150.303 / 692.623) / (107.957 / 484.559)
=0.2170055 / 0.22279433
=0.974

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)
=(247.93 / 484.559) / (313.8 / 692.623)
=0.51166112 / 0.45306032
=1.1293

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 - (315.408 + 42.011) / 935.103) / (1 - (264.128 + 32.309) / 578.747)
=0.6177758 / 0.48779519
=1.2665

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
=692.623 / 484.559
=1.4294

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))
=(25.639 / (25.639 + 32.309)) / (58.362 / (58.362 + 42.011))
=0.4424484 / 0.58145119
=0.7609

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)
=(249.52 / 692.623) / (167.581 / 484.559)
=0.3602537 / 0.3458423
=1.0417

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)
=((245.731 + 180.912) / 935.103) / ((0 + 124.63) / 578.747)
=0.45625241 / 0.21534453
=2.1187

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
=(0.603 - -8.429 - 47.937) / 935.103
=-0.0416

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 -2.54 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 local exchange's currency.

Omnicell Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.80081.30720.83091.00460.81951.11470.87721.21921.18690.974
GMI 1.03951.04121.03610.92970.95871.0181.01641.00761.03671.1293
AQI 1.44071.08570.82861.03460.92432.9690.88330.94671.13551.2665
SGI 1.37731.1820.84751.04191.1041.2791.21191.15851.0991.4294
DEPI 1.33540.87370.85541.111.18871.12370.82020.95380.81170.7609
SGAI 0.89340.98411.08580.9661.02440.960.95780.97180.97451.0417
LVGI 0.50831.05590.97740.93270.98331.12840.99781.06871.0742.1187
TATA 0.0186-0.001-0.1416-0.0458-0.0564-0.0528-0.0635-0.0618-0.0052-0.0506
M-score -1.82-2.01-3.51-2.64-2.85-1.59-2.75-2.47-2.21-2.58

Omnicell Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.27681.21921.0131.24761.08611.18691.4681.05011.11840.974
GMI 1.00771.00761.01581.02961.02881.03671.07261.09461.1081.1293
AQI 0.99290.94670.95711.12061.11251.13551.46971.3141.21141.2665
SGI 1.16471.15851.15211.13891.11921.0991.18441.29451.36821.4294
DEPI 1.02370.95380.89910.83690.81940.81170.85380.77150.74630.7609
SGAI 0.97510.97180.97140.97120.97220.97450.98671.00371.03031.0417
LVGI 1.04111.06871.05441.19661.04331.0742.38221.94272.08512.1187
TATA -0.0379-0.0618-0.0774-0.0288-0.0049-0.0011-0.0175-0.0218-0.0394-0.0416
M-score -2.26-2.47-2.73-2.28-2.29-2.19-2.21-2.43-2.47-2.54
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK