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Radisys Corp (NAS:RSYS)
Beneish M-Score
-3.76 (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 -3.76 suggests that the company is not a manipulator.

RSYS' s 10-Year Beneish M-Score Range
Min: -5.53   Max: 2.88
Current: -3.76

-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 -2.64.


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 * 1.2546+0.528 * 1.1942+0.404 * 0.8117+0.892 * 0.7426+0.115 * 0.899
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2073+4.679 * -0.2573-0.327 * 1.1703
=-3.76

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $42.1 Mil.
Revenue was 49.964 + 43.799 + 50.138 + 54.109 = $198.0 Mil.
Gross Profit was 12.007 + 11.148 + 10.853 + 14.166 = $48.2 Mil.
Total Current Assets was $114.1 Mil.
Total Assets was $180.1 Mil.
Property, Plant and Equipment(Net PPE) was $12.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.0 Mil.
Selling, General & Admin. Expense(SGA) was $39.1 Mil.
Total Current Liabilities was $90.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -8.211 + -10.434 + -26.015 + -12.72 = $-57.4 Mil.
Non Operating Income was 0.157 + 0.17 + 0.962 + 0.199 = $1.5 Mil.
Cash Flow from Operations was -2.118 + -3.204 + -5.996 + -1.195 = $-12.5 Mil.
Accounts Receivable was $45.2 Mil.
Revenue was 65.438 + 68.178 + 69.3 + 63.725 = $266.6 Mil.
Gross Profit was 19.464 + 19.655 + 20.7 + 17.648 = $77.5 Mil.
Total Current Assets was $116.6 Mil.
Total Assets was $211.0 Mil.
Property, Plant and Equipment(Net PPE) was $16.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.1 Mil.
Selling, General & Admin. Expense(SGA) was $43.7 Mil.
Total Current Liabilities was $72.4 Mil.
Long-Term Debt was $18.0 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)
=(42.091 / 198.01) / (45.176 / 266.641)
=0.21257007 / 0.16942631
=1.2546

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)
=(11.148 / 266.641) / (12.007 / 198.01)
=0.29052921 / 0.24329074
=1.1942

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 - (114.137 + 12.346) / 180.143) / (1 - (116.611 + 16.933) / 210.957)
=0.29787447 / 0.36696104
=0.8117

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
=198.01 / 266.641
=0.7426

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))
=(22.077 / (22.077 + 16.933)) / (20.978 / (20.978 + 12.346))
=0.56593181 / 0.62951626
=0.899

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)
=(39.136 / 198.01) / (43.65 / 266.641)
=0.19764658 / 0.16370326
=1.2073

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 + 90.365) / 180.143) / ((18 + 72.425) / 210.957)
=0.50162926 / 0.42864186
=1.1703

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
=(-57.38 - 1.488 - -12.513) / 180.143
=-0.2573

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 -3.76 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.10110.85990.96931.49110.56361.19931.0280.98681.21920.9588
GMI 0.99761.09081.09371.22220.85650.84530.99451.04890.95041.1412
AQI 1.16550.52652.62610.97121.13220.2681.12793.49080.84130.9018
SGI 1.21221.05861.12391.1121.14560.81670.93441.16370.86470.8314
DEPI 1.11760.94770.70110.75271.03351.12811.09071.06430.9430.9338
SGAI 0.92930.93331.16321.09470.92691.08641.08030.9950.99151.0966
LVGI 0.79710.91731.00681.0471.11471.08680.81890.95011.08071.1856
TATA -0.0314-0.0415-0.0601-0.095-0.3328-0.2462-0.0677-0.0567-0.2136-0.2771
M-score -2.19-2.86-2.04-2.33-4.35-4.02-2.72-1.55-3.52-4.01

Radisys Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.85930.88750.931.21921.27411.15710.96190.95880.97161.2546
GMI 1.00190.96730.94820.95040.98561.06731.08021.14121.16531.1942
AQI 3.81184.02730.91530.84130.8060.81540.93360.90180.8190.8117
SGI 1.14481.11840.93120.86470.83790.80690.86740.83140.76580.7426
DEPI 1.00010.90180.95660.9430.98941.04180.94290.93380.90340.899
SGAI 1.03421.06141.07710.99150.98471.0210.99361.09661.17071.2073
LVGI 0.87250.88041.0011.08071.09851.08451.05791.18561.13561.1703
TATA -0.0517-0.05-0.2081-0.2136-0.2457-0.2784-0.179-0.2772-0.2608-0.2573
M-score -1.55-1.49-3.66-3.52-3.64-3.88-3.48-4.02-4.01-3.76
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