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Radisys Corp (NAS:RSYS)
Beneish M-Score
-3.24 (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.

Radisys Corp has a M-score of -3.24 suggests that the company is not a manipulator.

RSYS' s Beneish M-Score Range Over the Past 10 Years
Min: -5.53   Max: 2.88
Current: -3.24

-5.53
2.88

During the past 13 years, the highest Beneish M-Score of Radisys Corp was 2.88. The lowest was -5.53. And the median was -2.72.


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 Radisys Corp 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 * 0.9624+0.528 * 0.9846+0.404 * 0.7035+0.892 * 0.9667+0.115 * 0.8994
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9415+4.679 * -0.1124-0.327 * 1.1301
=-3.24

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $38.8 Mil.
Revenue was 55.146 + 44.077 + 44.78 + 47.049 = $191.1 Mil.
Gross Profit was 12.784 + 13.918 + 13.007 + 12.601 = $52.3 Mil.
Total Current Assets was $96.4 Mil.
Total Assets was $133.0 Mil.
Property, Plant and Equipment(Net PPE) was $5.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.0 Mil.
Selling, General & Admin. Expense(SGA) was $28.8 Mil.
Total Current Liabilities was $65.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -2.965 + -1.44 + -2.066 + -4.119 = $-10.6 Mil.
Non Operating Income was 0.101 + 0.422 + 0.568 + 0.161 = $1.3 Mil.
Cash Flow from Operations was 1.682 + -2.045 + 0.488 + 2.986 = $3.1 Mil.
Accounts Receivable was $41.7 Mil.
Revenue was 48.687 + 48.174 + 50.805 + 49.964 = $197.6 Mil.
Gross Profit was 12.626 + 13.95 + 14.697 + 12.007 = $53.3 Mil.
Total Current Assets was $78.7 Mil.
Total Assets was $131.4 Mil.
Property, Plant and Equipment(Net PPE) was $8.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.8 Mil.
Selling, General & Admin. Expense(SGA) was $31.7 Mil.
Total Current Liabilities was $57.5 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)
=(38.813 / 191.052) / (41.716 / 197.63)
=0.20315412 / 0.21108131
=0.9624

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)
=(13.918 / 197.63) / (12.784 / 191.052)
=0.2695947 / 0.2737998
=0.9846

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 - (96.355 + 5.4) / 133.038) / (1 - (78.684 + 8.791) / 131.39)
=0.23514334 / 0.33423396
=0.7035

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
=191.052 / 197.63
=0.9667

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))
=(19.773 / (19.773 + 8.791)) / (18.045 / (18.045 + 5.4))
=0.69223498 / 0.7696737
=0.8994

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)
=(28.843 / 191.052) / (31.691 / 197.63)
=0.15096937 / 0.16035521
=0.9415

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 + 65.804) / 133.038) / ((0 + 57.509) / 131.39)
=0.4946256 / 0.43769693
=1.1301

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
=(-10.59 - 1.252 - 3.111) / 133.038
=-0.1124

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.

Radisys Corp has a M-score of -3.24 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.

Radisys Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96931.49110.56361.19931.0280.98681.21920.95881.30831.4513
GMI 1.09371.22220.85650.84530.99451.04890.95041.14121.00330.9513
AQI 2.62610.97121.13220.2681.12793.49080.84130.90180.86270.6896
SGI 1.12391.1121.14560.81670.93441.16370.86470.83140.81030.9577
DEPI 0.70110.75271.0321.12971.09071.06430.9430.93380.88150.8979
SGAI 1.16321.09470.92691.08641.08030.9950.99151.09661.07390.8357
LVGI 1.00681.0471.11471.08680.81890.95011.08071.18560.95841.177
TATA -0.0601-0.095-0.3282-0.2462-0.0677-0.0658-0.2136-0.2771-0.1378-0.1274
M-score -2.04-2.33-4.33-4.02-2.72-1.60-3.52-4.01-3.08-2.89

Radisys Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.95880.97161.25461.36241.30831.20020.94111.03241.45130.9624
GMI 1.14121.16531.19421.15071.00330.96660.87930.90450.95130.9846
AQI 0.90180.8190.81170.8280.86271.09141.06960.94750.68960.7035
SGI 0.83140.76580.74260.75750.81030.92570.98340.96910.95770.9667
DEPI 0.93380.90340.8990.88950.88150.88760.87720.89720.89790.8994
SGAI 1.03251.09971.13311.08271.07460.91770.83650.86740.88710.9415
LVGI 1.18561.13561.17031.03930.95840.90750.87670.95061.1771.1301
TATA -0.2771-0.2607-0.2572-0.2313-0.1378-0.1963-0.2108-0.2079-0.1271-0.1124
M-score -4.00-3.99-3.74-3.47-3.08-3.23-3.52-3.50-2.90-3.24
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