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Radisys Corporation (NAS:RSYS)
Beneish M-Score
-4.00 (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 Corporation has a M-score of -4.00 suggests that the company is not a manipulator.

RSYS' s 10-Year Beneish M-Score Range
Min: -4.32   Max: 2.88
Current: -4

-4.32
2.88

During the past 13 years, the highest Beneish M-Score of Radisys Corporation was 2.88. The lowest was -4.32. And the median was -2.71.


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 Corporation 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 * 0.9749+0.528 * 1.1412+0.404 * 0.9018+0.892 * 0.8314+0.115 * 0.9338
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0966+4.679 * -0.2772-0.327 * 1.1856
=-4.00

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $44.0 Mil.
Revenue was 50.138 + 54.109 + 65.438 + 68.178 = $237.9 Mil.
Gross Profit was 10.853 + 14.166 + 19.464 + 19.655 = $64.1 Mil.
Total Current Assets was $100.7 Mil.
Total Assets was $176.2 Mil.
Property, Plant and Equipment(Net PPE) was $14.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.7 Mil.
Selling, General & Admin. Expense(SGA) was $41.2 Mil.
Total Current Liabilities was $73.8 Mil.
Long-Term Debt was $18.0 Mil.
Net Income was -26.015 + -12.72 + -4.112 + -6.557 = $-49.4 Mil.
Non Operating Income was 0.962 + 0.199 + 0.226 + 0.136 = $1.5 Mil.
Cash Flow from Operations was -5.996 + -1.195 + 4.183 + 0.917 = $-2.1 Mil.
Accounts Receivable was $54.3 Mil.
Revenue was 69.3 + 63.725 + 77.584 + 75.487 = $286.1 Mil.
Gross Profit was 20.7 + 17.648 + 26.651 + 23.04 = $88.0 Mil.
Total Current Assets was $126.0 Mil.
Total Assets was $232.4 Mil.
Property, Plant and Equipment(Net PPE) was $17.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.1 Mil.
Selling, General & Admin. Expense(SGA) was $45.2 Mil.
Total Current Liabilities was $84.1 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)
=(43.993 / 237.863) / (54.275 / 286.096)
=0.184951 / 0.18970905
=0.9749

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)
=(14.166 / 286.096) / (10.853 / 237.863)
=0.30772538 / 0.26964261
=1.1412

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 - (100.693 + 14.854) / 176.185) / (1 - (125.988 + 17.713) / 232.394)
=0.34417232 / 0.38164927
=0.9018

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
=237.863 / 286.096
=0.8314

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))
=(22.079 / (22.079 + 17.713)) / (21.748 / (21.748 + 14.854))
=0.55486027 / 0.59417518
=0.9338

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)
=(41.21 / 237.863) / (45.2 / 286.096)
=0.17325099 / 0.15798893
=1.0966

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)
=((18 + 73.773) / 176.185) / ((18 + 84.101) / 232.394)
=0.52088997 / 0.43934439
=1.1856

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
=(-49.404 - 1.523 - -2.091) / 176.185
=-0.2772

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 Corporation has a M-score of -4.00 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.17310.88740.96811.41130.55521.26860.9861.02781.17880.9749
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 -2.12-2.84-2.04-2.40-4.36-3.95-2.76-1.52-3.56-4.00

Radisys Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.28621.02780.8970.89380.91071.17881.25611.15590.95240.9749
GMI 1.02241.04891.00190.96730.94820.95040.98561.06731.08021.1412
AQI 3.35263.49083.81184.02730.91530.84130.8060.81540.93360.9018
SGI 1.07641.16371.14481.11840.93120.86470.83790.80690.86740.8314
DEPI 1.10221.06431.00010.90180.95660.9430.98941.04180.94290.9338
SGAI 1.01210.9951.03421.06141.07710.99150.98471.0210.99361.0966
LVGI 0.99840.95010.87250.88041.0011.08071.09851.08451.05791.1856
TATA -0.025-0.0567-0.0517-0.05-0.2081-0.2136-0.2457-0.2784-0.179-0.2772
M-score -1.29-1.52-1.51-1.48-3.68-3.56-3.66-3.88-3.49-4.00
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