Switch to:
Sirona Dental Systems Inc (NAS:SIRO)
Beneish M-Score
-2.44 (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.

Sirona Dental Systems Inc has a M-score of -2.44 suggests that the company is not a manipulator.

SIRO' s 10-Year Beneish M-Score Range
Min: -3.29   Max: 30
Current: -2.44

-3.29
30

During the past 13 years, the highest Beneish M-Score of Sirona Dental Systems Inc was 30.00. The lowest was -3.29. And the median was -2.40.


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 Sirona Dental Systems Inc 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 * 1.071+0.528 * 1.0162+0.404 * 0.8775+0.892 * 1.1109+0.115 * 1.3568
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9526+4.679 * -0.0311-0.327 * 0.9559
=-2.44

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $153 Mil.
Revenue was 282.7 + 298.726 + 278.604 + 283.157 = $1,143 Mil.
Gross Profit was 151.5 + 162.731 + 143.291 + 151.487 = $609 Mil.
Total Current Assets was $598 Mil.
Total Assets was $1,821 Mil.
Property, Plant and Equipment(Net PPE) was $229 Mil.
Depreciation, Depletion and Amortization(DDA) was $77 Mil.
Selling, General & Admin. Expense(SGA) was $338 Mil.
Total Current Liabilities was $225 Mil.
Long-Term Debt was $75 Mil.
Net Income was 37.3 + 44.171 + 36.235 + 40.55 = $158 Mil.
Non Operating Income was 0.1 + -2.501 + 0.117 + -3.971 = $-6 Mil.
Cash Flow from Operations was 67.615 + 11.285 + 72.005 + 70.22 = $221 Mil.
Accounts Receivable was $128 Mil.
Revenue was 267.3 + 272.404 + 247.364 + 242.007 = $1,029 Mil.
Gross Profit was 144.7 + 151.871 + 132.079 + 128.44 = $557 Mil.
Total Current Assets was $443 Mil.
Total Assets was $1,561 Mil.
Property, Plant and Equipment(Net PPE) was $146 Mil.
Depreciation, Depletion and Amortization(DDA) was $76 Mil.
Selling, General & Admin. Expense(SGA) was $320 Mil.
Total Current Liabilities was $195 Mil.
Long-Term Debt was $75 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)
=(152.6 / 1143.187) / (128.257 / 1029.075)
=0.13348647 / 0.12463329
=1.071

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)
=(162.731 / 1029.075) / (151.5 / 1143.187)
=0.54135024 / 0.53272912
=1.0162

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 - (598 + 228.8) / 1821) / (1 - (443.37 + 146.496) / 1561.272)
=0.54596376 / 0.62218883
=0.8775

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
=1143.187 / 1029.075
=1.1109

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))
=(75.789 / (75.789 + 146.496)) / (76.796 / (76.796 + 228.8))
=0.34095418 / 0.2512991
=1.3568

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)
=(338.331 / 1143.187) / (319.699 / 1029.075)
=0.29595421 / 0.31066638
=0.9526

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)
=((75.3 + 225.3) / 1821) / ((75 + 194.604) / 1561.272)
=0.16507414 / 0.17268227
=0.9559

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
=(158.256 - -6.255 - 221.125) / 1821
=-0.0311

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.

Sirona Dental Systems Inc has a M-score of -2.44 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.

Sirona Dental Systems Inc Annual Data

Mar05Mar06Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.06741.14311.0281.08420.89081.1690.78340.99451.23250.9734
GMI 0.98831.02591.50311.00721.01060.94070.93680.97880.98920.9965
AQI 0.09831.279744.46360.95080.93780.96120.92910.90591.07320.906
SGI 1.33061.33877.41881.26771.14720.94211.07991.18641.07171.1247
DEPI 1.29241.2040.56210.97231.05931.09141.05621.16651.08771.2017
SGAI 0.83820.89931.20951.06621.03980.98390.96950.98990.99571.001
LVGI 0.79780.813.57481.01640.97390.90360.88860.93570.56371.0567
TATA -0.1282-0.0519-0.0691-0.0114-0.0465-0.04-0.0626-0.0345-0.0427-0.0423
M-score -2.97-2.0619.84-2.25-2.68-2.57-2.91-2.49-2.22-2.63

Sirona Dental Systems Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.9590.84670.88591.23251.12181.01590.81110.97340.97191.071
GMI 1.00331.01121.00420.98920.97220.97060.97520.99651.01221.0162
AQI 1.06521.11291.09531.07320.9580.91990.91830.9060.87750.8775
SGI 1.18361.16891.08291.07171.06121.07931.12561.12471.1351.1109
DEPI 1.11471.06511.021.08771.14281.10381.151.20171.31941.3568
SGAI 1.01430.99211.02940.99571.00941.02320.99011.00270.96050.9526
LVGI 0.59010.50740.53330.56370.91541.09441.03481.05670.98340.9559
TATA -0.037-0.0451-0.0515-0.0427-0.0514-0.0519-0.0517-0.0422-0.026-0.0311
M-score -2.35-2.46-2.56-2.22-2.54-2.71-2.82-2.63-2.50-2.44
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide