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The Spectranetics Corp (NAS:SPNC)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

SPNC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.93   Max: -0.04
Current: -2.5

-3.93
-0.04

During the past 13 years, the highest Beneish M-Score of The Spectranetics Corp was -0.04. 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 * 0.8791+0.528 * 0.9944+0.404 * 1.0211+0.892 * 1.2003+0.115 * 0.8906
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9321+4.679 * 0.0008-0.327 * 1.2851
=-2.50

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $43.4 Mil.
Revenue was 65.197 + 61.66 + 61.677 + 57.422 = $246.0 Mil.
Gross Profit was 48.839 + 45.851 + 45.763 + 42.369 = $182.8 Mil.
Total Current Assets was $158.3 Mil.
Total Assets was $468.0 Mil.
Property, Plant and Equipment(Net PPE) was $44.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.6 Mil.
Selling, General & Admin. Expense(SGA) was $143.4 Mil.
Total Current Liabilities was $63.7 Mil.
Long-Term Debt was $283.7 Mil.
Net Income was -10.46 + -14.493 + -7.216 + -27.305 = $-59.5 Mil.
Non Operating Income was -0.114 + -0.006 + -0.07 + -0.179 = $-0.4 Mil.
Cash Flow from Operations was -16.691 + -10.225 + -10.082 + -22.461 = $-59.5 Mil.
Accounts Receivable was $41.1 Mil.
Revenue was 62.959 + 58.786 + 43.555 + 39.614 = $204.9 Mil.
Gross Profit was 46.04 + 43.086 + 33.049 + 29.28 = $151.5 Mil.
Total Current Assets was $170.1 Mil.
Total Assets was $457.8 Mil.
Property, Plant and Equipment(Net PPE) was $33.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $16.8 Mil.
Selling, General & Admin. Expense(SGA) was $128.1 Mil.
Total Current Liabilities was $41.3 Mil.
Long-Term Debt was $223.1 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)
=(43.359 / 245.956) / (41.09 / 204.914)
=0.17628763 / 0.20052315
=0.8791

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)
=(45.851 / 204.914) / (48.839 / 245.956)
=0.73911495 / 0.74331181
=0.9944

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 - (158.279 + 44.719) / 467.999) / (1 - (170.134 + 33.819) / 457.838)
=0.56624266 / 0.55453021
=1.0211

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
=245.956 / 204.914
=1.2003

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))
=(16.813 / (16.813 + 33.819)) / (26.588 / (26.588 + 44.719))
=0.33206273 / 0.37286662
=0.8906

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)
=(143.355 / 245.956) / (128.129 / 204.914)
=0.58284815 / 0.62528183
=0.9321

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)
=((283.677 + 63.679) / 467.999) / ((223.088 + 41.343) / 457.838)
=0.74221526 / 0.57756455
=1.2851

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
=(-59.474 - -0.369 - -59.459) / 467.999
=0.0008

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 -2.50 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.

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 1.12240.96281.01251.10430.94310.86971.05860.98531.08230.9321
LVGI 0.4841.02560.98991.02791.31821.29180.71090.58675.40031.2851
TATA 0.05750.0696-0.0267-0.0626-0.2237-0.0514-0.0265-0.0212-0.04420.0008
M-score -1.57-2.01-1.61-2.83-3.95-2.34-2.40-2.26-1.82-2.50

The Spectranetics Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.05981.18541.10561.46881.26361.18981.01350.71880.83550.8791
GMI 0.99230.98660.9810.97250.98581.00061.00521.01871.00850.9944
AQI 0.90780.77030.42864.57894.62835.72186.48091.10231.12411.0211
SGI 1.12921.13211.1111.10561.19681.29031.38551.4611.32551.2003
DEPI 0.94890.9821.02421.08170.95650.82160.77490.70310.8180.8906
SGAI 0.99720.98531.03061.05931.08221.08231.02510.96860.93580.9321
LVGI 0.54220.58670.64725.99946.33345.40036.49081.18761.2291.2851
TATA -0.0257-0.0212-0.0346-0.0184-0.0342-0.0442-0.0622-0.0456-0.03280.0008
M-score -2.33-2.26-2.57-2.24-2.53-1.82-2.02-2.58-2.52-2.50
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