Switch to:
The Spectranetics Corp (NAS:SPNC)
Beneish M-Score
-2.75 (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.

The Spectranetics Corp has a M-score of -2.75 suggests that the company is not a manipulator.

SPNC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94   Max: 1.78
Current: -2.75

-3.94
1.78

During the past 13 years, the highest Beneish M-Score of The Spectranetics Corp was 1.78. The lowest was -3.94. And the median was -2.27.


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 The Spectranetics 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 * 0.9594+0.528 * 0.9863+0.404 * 0.9341+0.892 * 1.0836+0.115 * 0.9514
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0862+4.679 * -0.044-0.327 * 1.1587
=-2.75

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $41.7 Mil.
Revenue was 68.265 + 67.748 + 62.884 + 65.197 = $264.1 Mil.
Gross Profit was 51.381 + 50.765 + 46.802 + 48.839 = $197.8 Mil.
Total Current Assets was $133.6 Mil.
Total Assets was $431.9 Mil.
Property, Plant and Equipment(Net PPE) was $44.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.5 Mil.
Selling, General & Admin. Expense(SGA) was $158.9 Mil.
Total Current Liabilities was $60.6 Mil.
Long-Term Debt was $284.5 Mil.
Net Income was -13.312 + -14.906 + -17.291 + -10.46 = $-56.0 Mil.
Non Operating Income was 0.004 + -0.158 + 0.175 + -0.114 = $-0.1 Mil.
Cash Flow from Operations was -5.878 + -1.873 + -12.444 + -16.691 = $-36.9 Mil.
Accounts Receivable was $40.1 Mil.
Revenue was 61.66 + 61.677 + 57.422 + 62.959 = $243.7 Mil.
Gross Profit was 45.851 + 45.763 + 42.369 + 46.04 = $180.0 Mil.
Total Current Assets was $117.2 Mil.
Total Assets was $436.7 Mil.
Property, Plant and Equipment(Net PPE) was $45.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.5 Mil.
Selling, General & Admin. Expense(SGA) was $135.0 Mil.
Total Current Liabilities was $71.2 Mil.
Long-Term Debt was $230.0 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)
=(41.661 / 264.094) / (40.072 / 243.718)
=0.15775065 / 0.16441953
=0.9594

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)
=(180.023 / 243.718) / (197.787 / 264.094)
=0.73865287 / 0.74892652
=0.9863

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 - (133.562 + 44.851) / 431.862) / (1 - (117.194 + 45.136) / 436.725)
=0.58687497 / 0.62830156
=0.9341

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
=264.094 / 243.718
=1.0836

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))
=(25.537 / (25.537 + 45.136)) / (27.468 / (27.468 + 44.851))
=0.36134026 / 0.3798172
=0.9514

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)
=(158.904 / 264.094) / (135.012 / 243.718)
=0.60169485 / 0.55396811
=1.0862

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)
=((284.483 + 60.639) / 431.862) / ((230 + 71.204) / 436.725)
=0.7991488 / 0.68968802
=1.1587

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
=(-55.969 - -0.093 - -36.886) / 431.862
=-0.044

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.

The Spectranetics Corp has a M-score of -2.75 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 local exchange's currency.

The Spectranetics Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.93510.98880.85850.95070.93431.07180.99861.18541.18980.8791
GMI 1.03210.99711.02461.008510.98890.98590.98661.00060.9944
AQI 1.26610.73123.22480.84990.30141.80911.10160.77035.72181.0211
SGI 1.46931.30531.2551.10411.02681.07951.10211.13211.29031.2003
DEPI 1.07340.97540.85160.77840.92580.96330.99930.9820.82160.8906
SGAI 1.12240.96281.01251.08770.85010.97971.05860.98531.08230.9321
LVGI 0.4841.02560.98991.02791.31821.29180.71090.58675.40031.2851
TATA 0.05750.0696-0.0262-0.0626-0.2237-0.0535-0.0265-0.0212-0.04420.0008
M-score -1.57-2.01-1.61-2.83-3.93-2.37-2.40-2.26-1.82-2.50

The Spectranetics Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.46881.26361.18981.01350.71880.83550.87911.00841.01250.9594
GMI 0.97250.98581.00061.00521.01871.00850.99440.99190.98570.9863
AQI 4.57894.62835.76286.48091.10231.12411.01380.90810.93040.9341
SGI 1.10561.19681.29031.38551.4611.32551.20031.12881.06911.0836
DEPI 1.08170.95650.82160.77490.70310.8180.89060.91550.96020.9514
SGAI 1.10171.15651.08111.02170.9040.82640.93320.95141.01591.0862
LVGI 5.99946.33345.43336.49081.18761.2291.27731.25071.19791.1587
TATA -0.021-0.0369-0.0433-0.0622-0.0428-0.02990.0008-0-0.036-0.044
M-score -2.26-2.55-1.81-2.02-2.56-2.49-2.50-2.48-2.68-2.75
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)
FEEDBACK