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Radisys Corp (NAS:RSYS)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

RSYS' s Beneish M-Score Range Over the Past 10 Years
Min: -4.31   Max: 2.88
Current: -2.9

-4.31
2.88

During the past 13 years, the highest Beneish M-Score of Radisys Corp was 2.88. The lowest was -4.31. 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 * 1.4513+0.528 * 0.9513+0.404 * 0.6896+0.892 * 0.9577+0.115 * 0.8979
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8871+4.679 * -0.1274-0.327 * 1.177
=-2.90

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $60.9 Mil.
Revenue was 44.077 + 44.78 + 47.049 + 48.687 = $184.6 Mil.
Gross Profit was 13.918 + 13.007 + 12.601 + 12.626 = $52.2 Mil.
Total Current Assets was $126.7 Mil.
Total Assets was $167.1 Mil.
Property, Plant and Equipment(Net PPE) was $6.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General & Admin. Expense(SGA) was $28.7 Mil.
Total Current Liabilities was $98.2 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -1.44 + -2.066 + -4.119 + -7.053 = $-14.7 Mil.
Non Operating Income was 0.422 + 0.568 + 0.161 + 0.397 = $1.5 Mil.
Cash Flow from Operations was -2.045 + 0.488 + 2.986 + 3.628 = $5.1 Mil.
Accounts Receivable was $43.8 Mil.
Revenue was 48.174 + 50.805 + 49.964 + 43.799 = $192.7 Mil.
Gross Profit was 13.95 + 14.697 + 12.007 + 11.148 = $51.8 Mil.
Total Current Assets was $103.3 Mil.
Total Assets was $160.9 Mil.
Property, Plant and Equipment(Net PPE) was $9.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.2 Mil.
Selling, General & Admin. Expense(SGA) was $33.8 Mil.
Total Current Liabilities was $80.3 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)
=(60.942 / 184.593) / (43.845 / 192.742)
=0.33014253 / 0.22748026
=1.4513

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)
=(13.007 / 192.742) / (13.918 / 184.593)
=0.26876342 / 0.28252426
=0.9513

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 - (126.729 + 6.134) / 167.069) / (1 - (103.338 + 9.786) / 160.896)
=0.20474175 / 0.29691229
=0.6896

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
=184.593 / 192.742
=0.9577

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))
=(20.24 / (20.24 + 9.786)) / (18.478 / (18.478 + 6.134))
=0.67408246 / 0.75077198
=0.8979

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)
=(28.704 / 184.593) / (33.787 / 192.742)
=0.15549885 / 0.17529651
=0.8871

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 + 98.167) / 167.069) / ((0 + 80.32) / 160.896)
=0.58758357 / 0.49920446
=1.177

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
=(-14.678 - 1.548 - 5.057) / 167.069
=-0.1274

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 -2.90 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 0.70110.75271.03351.12811.09071.06430.9430.93380.88150.8979
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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.96190.95880.97161.25461.36241.30831.20020.94111.03241.4513
GMI 1.08021.14121.16531.19421.15071.00330.96660.87930.90450.9513
AQI 0.93360.90180.8190.81170.8280.86271.09141.06960.94750.6896
SGI 0.86740.83140.76580.74260.75750.81030.92570.98340.96910.9577
DEPI 0.94290.93380.90340.8990.88950.88150.88760.87720.89720.8979
SGAI 0.99361.03251.09971.13311.08271.07460.91770.83650.86740.8871
LVGI 1.05791.18561.13561.17031.03930.95840.90750.87670.95061.177
TATA -0.179-0.2771-0.2607-0.2572-0.2313-0.1378-0.1967-0.2112-0.2083-0.1274
M-score -3.48-4.00-3.99-3.74-3.47-3.08-3.23-3.52-3.50-2.90
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