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The Spectranetics Corp (NAS:SPNC)
Beneish M-Score
-2.02 (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 -2.02 signals that the company is a manipulator.

SPNC' s 10-Year Beneish M-Score Range
Min: -3.93   Max: 1.15
Current: -2.02

-3.93
1.15

During the past 13 years, the highest Beneish M-Score of The Spectranetics Corp was 1.15. The lowest was -3.93. And the median was -2.26.


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 * 1.0135+0.528 * 1.0052+0.404 * 6.4809+0.892 * 1.3855+0.115 * 0.7749
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0231+4.679 * -0.0622-0.327 * 6.4908
=-2.02

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $38.8 Mil.
Revenue was 57.422 + 62.959 + 58.786 + 43.555 = $222.7 Mil.
Gross Profit was 42.369 + 46.04 + 43.086 + 33.049 = $164.5 Mil.
Total Current Assets was $121.5 Mil.
Total Assets was $443.8 Mil.
Property, Plant and Equipment(Net PPE) was $38.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.3 Mil.
Selling, General & Admin. Expense(SGA) was $137.1 Mil.
Total Current Liabilities was $39.2 Mil.
Long-Term Debt was $230.0 Mil.
Net Income was -27.305 + -14.731 + -13.944 + -6.565 = $-62.5 Mil.
Non Operating Income was -0.179 + -0.091 + -0.122 + -0.001 = $-0.4 Mil.
Cash Flow from Operations was -22.461 + -7.576 + -3.403 + -1.111 = $-34.6 Mil.
Accounts Receivable was $27.7 Mil.
Revenue was 39.614 + 41.92 + 39.763 + 39.453 = $160.8 Mil.
Gross Profit was 29.28 + 31.561 + 29.71 + 28.828 = $119.4 Mil.
Total Current Assets was $162.3 Mil.
Total Assets was $212.0 Mil.
Property, Plant and Equipment(Net PPE) was $28.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.6 Mil.
Selling, General & Admin. Expense(SGA) was $96.7 Mil.
Total Current Liabilities was $19.8 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)
=(38.831 / 222.722) / (27.652 / 160.75)
=0.17434739 / 0.17201866
=1.0135

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)
=(46.04 / 160.75) / (42.369 / 222.722)
=0.74263764 / 0.73878647
=1.0052

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 - (121.52 + 38.26) / 443.789) / (1 - (162.28 + 28.747) / 211.957)
=0.63996404 / 0.09874644
=6.4809

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
=222.722 / 160.75
=1.3855

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))
=(10.581 / (10.581 + 28.747)) / (20.348 / (20.348 + 38.26))
=0.26904496 / 0.3471881
=0.7749

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)
=(137.06 / 222.722) / (96.689 / 160.75)
=0.615386 / 0.60148678
=1.0231

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)
=((230 + 39.207) / 443.789) / ((0 + 19.809) / 211.957)
=0.60661035 / 0.09345764
=6.4908

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
=(-62.545 - -0.393 - -34.551) / 443.789
=-0.0622

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 -2.02 signals that the company is likely to 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.

The Spectranetics Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01280.93510.98880.85850.95070.93431.07180.99861.18541.1898
GMI 0.98671.03210.99711.02461.008510.98890.98590.98661.0006
AQI 0.49161.26610.73123.22480.84990.30141.80911.10160.77035.7628
SGI 1.2451.46931.30531.2551.10411.02681.07951.10211.13211.2903
DEPI 1.57011.07340.97540.85160.77840.92580.96330.99930.9820.8216
SGAI 1.00261.12240.96281.01251.08770.85010.97971.05860.98531.0823
LVGI 1.04050.4841.02560.98991.02791.31821.29180.71090.58675.4333
TATA 0.02780.05750.0696-0.0262-0.0626-0.2237-0.0535-0.0265-0.0212-0.0433
M-score -2.28-1.57-2.01-1.61-2.83-3.93-2.37-2.40-2.26-1.81

The Spectranetics Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.99861.12081.07451.05981.18541.10561.46881.26361.18981.0135
GMI 0.98590.99541.00040.99230.98660.9810.97250.98581.00061.0052
AQI 1.10161.63570.89870.90780.77030.42864.57894.62835.76286.4809
SGI 1.10211.11191.12151.12921.13211.1111.10561.19681.29031.3855
DEPI 0.99930.95440.94770.94890.9821.02421.08170.95650.82160.7749
SGAI 1.05861.02991.01620.99720.98531.03061.10041.15531.081.0231
LVGI 0.71090.84480.56420.54220.58670.64725.99946.33345.43336.4908
TATA -0.0265-0.0188-0.025-0.0257-0.0212-0.0346-0.021-0.0369-0.0433-0.0622
M-score -2.40-2.06-2.33-2.33-2.26-2.57-2.26-2.55-1.81-2.02
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