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Radisys Corp (NAS:RSYS)
Beneish M-Score
-3.08 (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 -3.08 suggests that the company is not a manipulator.

RSYS' s 10-Year Beneish M-Score Range
Min: -4.31   Max: 2.88
Current: -3.08

-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 * 1.3083+0.528 * 1.0033+0.404 * 0.8596+0.892 * 0.8103+0.115 * 0.8815
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0739+4.679 * -0.1379-0.327 * 0.9573
=-3.08

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 $103.4 Mil.
Total Assets was $160.7 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 $35.9 Mil.
Total Current Liabilities was $80.1 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -4.467 + -4.469 + -8.211 + -10.434 = $-27.6 Mil.
Non Operating Income was 0.59 + 0.463 + 0.157 + 0.17 = $1.4 Mil.
Cash Flow from Operations was 0.175 + -1.65 + -2.118 + -3.204 = $-6.8 Mil.
Accounts Receivable was $41.4 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.



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)
=(43.845 / 192.742) / (41.359 / 237.863)
=0.22748026 / 0.1738774
=1.3083

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)
=(14.697 / 237.863) / (13.95 / 192.742)
=0.26964261 / 0.26876342
=1.0033

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 - (103.384 + 9.786) / 160.72) / (1 - (100.693 + 14.854) / 176.185)
=0.29585615 / 0.34417232
=0.8596

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
=192.742 / 237.863
=0.8103

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))
=(21.748 / (21.748 + 14.854)) / (20.24 / (20.24 + 9.786))
=0.59417518 / 0.67408246
=0.8815

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)
=(35.862 / 192.742) / (41.21 / 237.863)
=0.1860622 / 0.17325099
=1.0739

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 + 80.144) / 160.72) / ((18 + 73.773) / 176.185)
=0.49865605 / 0.52088997
=0.9573

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
=(-27.581 - 1.38 - -6.797) / 160.72
=-0.1379

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 -3.08 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.931.21921.27411.15710.96190.95880.97161.25461.36241.3083
GMI 0.94820.95040.98561.06731.08021.14121.16531.19421.15071.0033
AQI 0.91530.84130.8060.81540.93360.90180.8190.81170.8280.8596
SGI 0.93120.86470.83790.80690.86740.83140.76580.74260.75750.8103
DEPI 0.95660.9430.98941.04180.94290.93380.90340.8990.88950.8815
SGAI 1.07710.99150.98471.0210.99361.09661.17071.20731.15771.0739
LVGI 1.0011.08071.09851.08451.05791.18561.13561.17031.03930.9573
TATA -0.2081-0.2136-0.2457-0.2784-0.179-0.2771-0.2606-0.2572-0.2313-0.1379
M-score -3.66-3.52-3.64-3.88-3.48-4.01-4.01-3.76-3.49-3.08
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