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Radisys Corp (NAS:RSYS)
Beneish M-Score
-3.52 (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 -3.52 suggests that the company is not a manipulator.

RSYS' s 10-Year Beneish M-Score Range
Min: -5.53   Max: 2.88
Current: -3.52

-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 -2.69.


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 * 0.9411+0.528 * 0.8793+0.404 * 1.0696+0.892 * 0.9834+0.115 * 0.8772
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.839+4.679 * -0.2112-0.327 * 0.8767
=-3.52

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $39.0 Mil.
Revenue was 47.049 + 48.687 + 48.174 + 50.805 = $194.7 Mil.
Gross Profit was 12.601 + 12.626 + 13.95 + 14.697 = $53.9 Mil.
Total Current Assets was $79.0 Mil.
Total Assets was $127.2 Mil.
Property, Plant and Equipment(Net PPE) was $7.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.4 Mil.
Selling, General & Admin. Expense(SGA) was $32.3 Mil.
Total Current Liabilities was $55.9 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -4.119 + -7.053 + -4.467 + -4.469 = $-20.1 Mil.
Non Operating Income was 0.161 + 0.397 + 0.59 + 0.463 = $1.6 Mil.
Cash Flow from Operations was 2.986 + 3.628 + 0.175 + -1.65 = $5.1 Mil.
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.



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)
=(38.951 / 194.715) / (42.091 / 198.01)
=0.20004109 / 0.21257007
=0.9411

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)
=(12.626 / 198.01) / (12.601 / 194.715)
=0.24329074 / 0.2766813
=0.8793

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 - (79.03 + 7.625) / 127.173) / (1 - (114.137 + 12.346) / 180.143)
=0.31860536 / 0.29787447
=1.0696

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
=194.715 / 198.01
=0.9834

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))
=(20.978 / (20.978 + 12.346)) / (19.378 / (19.378 + 7.625))
=0.62951626 / 0.71762397
=0.8772

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)
=(32.288 / 194.715) / (39.136 / 198.01)
=0.16582184 / 0.19764658
=0.839

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 + 55.931) / 127.173) / ((0 + 90.365) / 180.143)
=0.43980247 / 0.50162926
=0.8767

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
=(-20.108 - 1.611 - 5.139) / 127.173
=-0.2112

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 -3.52 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.27411.15710.96190.95880.97161.25461.36241.30831.20020.9411
GMI 0.98561.06731.08021.14121.16531.19421.15071.00330.96660.8793
AQI 0.8060.81540.93360.90180.8190.81170.8280.85961.09141.0696
SGI 0.83790.80690.86740.83140.76580.74260.75750.81030.92570.9834
DEPI 0.98941.04180.94290.93380.90340.8990.88950.88150.88760.8772
SGAI 0.98471.0210.99361.09661.17071.20731.15771.07390.91850.839
LVGI 1.09851.08451.05791.18561.13561.17031.03930.95730.90750.8767
TATA -0.2457-0.2784-0.179-0.2771-0.2607-0.2572-0.2313-0.138-0.1967-0.2112
M-score -3.64-3.88-3.48-4.01-4.01-3.76-3.49-3.08-3.23-3.52
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