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Radisys Corp (NAS:RSYS)
Beneish M-Score
-3.50 (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 -3.50 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: -3.5

-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 -2.70.


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 * 1.0324+0.528 * 0.9045+0.404 * 0.9475+0.892 * 0.9691+0.115 * 0.8972
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8688+4.679 * -0.2083-0.327 * 0.9506
=-3.50

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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 $31.3 Mil.
Total Current Liabilities was $58.6 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -2.066 + -4.119 + -7.053 + -4.467 = $-17.7 Mil.
Non Operating Income was 0.568 + 0.161 + 0.397 + 0.59 = $1.7 Mil.
Cash Flow from Operations was 0.488 + 2.986 + 3.628 + 0.175 = $7.3 Mil.
Accounts Receivable was $43.9 Mil.
Revenue was 50.805 + 49.964 + 43.799 + 50.138 = $194.7 Mil.
Gross Profit was 14.697 + 12.007 + 11.148 + 10.853 = $48.7 Mil.
Total Current Assets was $103.2 Mil.
Total Assets was $163.8 Mil.
Property, Plant and Equipment(Net PPE) was $10.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.5 Mil.
Selling, General & Admin. Expense(SGA) was $37.2 Mil.
Total Current Liabilities was $78.7 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)
=(43.881 / 188.69) / (43.86 / 194.706)
=0.23255604 / 0.2252627
=1.0324

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)
=(12.601 / 194.706) / (13.007 / 188.69)
=0.25014637 / 0.27655944
=0.9045

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 - (84.24 + 6.828) / 128.187) / (1 - (103.171 + 10.597) / 163.838)
=0.28956915 / 0.30560676
=0.9475

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
=188.69 / 194.706
=0.9691

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))
=(20.519 / (20.519 + 10.597)) / (18.939 / (18.939 + 6.828))
=0.65943566 / 0.7350099
=0.8972

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)
=(31.295 / 188.69) / (37.168 / 194.706)
=0.16585405 / 0.19089294
=0.8688

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 + 58.555) / 128.187) / ((0 + 78.727) / 163.838)
=0.45679359 / 0.48051734
=0.9506

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
=(-17.705 - 1.716 - 7.277) / 128.187
=-0.2083

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 -3.50 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.85990.96931.49110.56361.19931.0280.98681.21920.95881.3083
GMI 1.09081.09371.22220.85650.84530.99451.04890.95041.14121.0033
AQI 0.52652.62610.97121.13220.2681.12793.49080.84130.90180.8596
SGI 1.05861.12391.1121.14560.81670.93441.16370.86470.83140.8103
DEPI 0.94770.70110.75271.03351.12811.09071.06430.9430.93380.8815
SGAI 0.93331.16321.09470.92691.08641.08030.9950.99151.09661.0739
LVGI 0.91731.00681.0471.11471.08680.81890.95011.08071.18560.9573
TATA -0.0415-0.0601-0.095-0.3328-0.2462-0.0677-0.0567-0.2136-0.2771-0.138
M-score -2.86-2.04-2.33-4.35-4.02-2.72-1.55-3.52-4.01-3.08

Radisys Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.15710.96190.95880.97161.25461.36241.30831.20020.94111.0324
GMI 1.06731.08021.14121.16531.19421.15071.00330.96660.87930.9045
AQI 0.81540.93360.90180.8190.81170.8280.85961.09141.06960.9475
SGI 0.80690.86740.83140.76580.74260.75750.81030.92570.98340.9691
DEPI 1.04180.94290.93380.90340.8990.88950.88150.88760.87720.8972
SGAI 1.0210.99361.09661.17071.20731.15771.07390.91850.8390.8688
LVGI 1.08451.05791.18561.13561.17031.03930.95730.90750.87670.9506
TATA -0.2784-0.179-0.2771-0.2607-0.2572-0.2313-0.138-0.1967-0.2112-0.2083
M-score -3.88-3.48-4.01-4.01-3.76-3.49-3.08-3.23-3.52-3.50
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