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Radisys Corp (NAS:RSYS)
Beneish M-Score
-2.73 (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 -2.73 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: -2.73

-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 * 1.1267+0.528 * 1.0588+0.404 * 0.6142+0.892 * 1.1442+0.115 * 1.0178
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9177+4.679 * -0.0713-0.327 * 1.1686
=-2.73

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $56.6 Mil.
Revenue was 55.397 + 61.288 + 55.146 + 44.077 = $215.9 Mil.
Gross Profit was 14.246 + 15.445 + 12.784 + 13.918 = $56.4 Mil.
Total Current Assets was $109.6 Mil.
Total Assets was $141.3 Mil.
Property, Plant and Equipment(Net PPE) was $6.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.2 Mil.
Selling, General & Admin. Expense(SGA) was $30.7 Mil.
Total Current Liabilities was $75.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -2.638 + -0.591 + -2.965 + -1.44 = $-7.6 Mil.
Non Operating Income was 0.255 + 1.069 + 0.101 + 0.422 = $1.8 Mil.
Cash Flow from Operations was 2.017 + -1.059 + 1.682 + -2.045 = $0.6 Mil.
Accounts Receivable was $43.9 Mil.
Revenue was 44.78 + 47.049 + 48.687 + 48.174 = $188.7 Mil.
Gross Profit was 13.007 + 12.601 + 12.626 + 13.95 = $52.2 Mil.
Total Current Assets was $84.2 Mil.
Total Assets was $128.2 Mil.
Property, Plant and Equipment(Net PPE) was $6.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.9 Mil.
Selling, General & Admin. Expense(SGA) was $29.2 Mil.
Total Current Liabilities was $58.6 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)
=(56.572 / 215.908) / (43.881 / 188.69)
=0.26201901 / 0.23255604
=1.1267

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)
=(52.184 / 188.69) / (56.393 / 215.908)
=0.27655944 / 0.26118995
=1.0588

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 - (109.554 + 6.616) / 141.3) / (1 - (84.24 + 6.828) / 128.187)
=0.17784855 / 0.28956915
=0.6142

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
=215.908 / 188.69
=1.1442

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))
=(18.939 / (18.939 + 6.828)) / (17.197 / (17.197 + 6.616))
=0.7350099 / 0.72216856
=1.0178

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)
=(30.682 / 215.908) / (29.22 / 188.69)
=0.14210682 / 0.15485717
=0.9177

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 + 75.424) / 141.3) / ((0 + 58.555) / 128.187)
=0.53378627 / 0.45679359
=1.1686

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
=(-7.634 - 1.847 - 0.595) / 141.3
=-0.0713

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 -2.73 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.

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 0.70110.75271.03351.12811.09071.06430.9430.93380.88150.8979
SGAI 1.16321.09470.92691.08641.08030.9950.99151.03251.07460.8871
LVGI 1.00681.0471.11471.08680.81890.95011.08071.18560.95841.177
TATA -0.0601-0.095-0.3328-0.2462-0.0677-0.0567-0.2136-0.2771-0.1378-0.1274
M-score -2.04-2.33-4.35-4.02-2.72-1.55-3.52-4.00-3.08-2.90

Radisys Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.25461.36241.30831.20020.94111.03241.45130.96241.04721.1267
GMI 1.19421.15071.00330.96660.87930.90450.95130.98461.02981.0588
AQI 0.81170.8280.86271.09141.06960.94750.68960.70350.63910.6142
SGI 0.74260.75750.81030.92570.98340.96910.95770.96671.05431.1442
DEPI 0.8990.88950.88150.88760.87720.89720.89790.89940.92361.0178
SGAI 1.13311.08271.07460.91770.83650.86740.88710.94150.93930.9177
LVGI 1.17031.03930.95840.90750.87670.95061.1771.13011.15151.1686
TATA -0.2572-0.2313-0.1378-0.1963-0.2108-0.2079-0.1271-0.1124-0.0604-0.0713
M-score -3.74-3.47-3.08-3.23-3.52-3.50-2.90-3.24-2.85-2.73
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