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The Spectranetics Corp (NAS:SPNC)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

SPNC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.93   Max: 1.78
Current: -2.48

-3.93
1.78

During the past 13 years, the highest Beneish M-Score of The Spectranetics Corp was 1.78. The lowest was -3.93. And the median was -2.25.


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 * 1.0084+0.528 * 0.9919+0.404 * 0.9081+0.892 * 1.1288+0.115 * 0.9155
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9495+4.679 * -0-0.327 * 1.2507
=-2.48

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $44.2 Mil.
Revenue was 62.884 + 65.197 + 61.66 + 61.677 = $251.4 Mil.
Gross Profit was 46.802 + 48.839 + 45.851 + 45.763 = $187.3 Mil.
Total Current Assets was $144.0 Mil.
Total Assets was $450.5 Mil.
Property, Plant and Equipment(Net PPE) was $44.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $27.3 Mil.
Selling, General & Admin. Expense(SGA) was $147.2 Mil.
Total Current Liabilities was $57.9 Mil.
Long-Term Debt was $283.9 Mil.
Net Income was -17.291 + -10.46 + -14.493 + -7.216 = $-49.5 Mil.
Non Operating Income was 0.175 + -0.114 + -0.006 + -0.07 = $-0.0 Mil.
Cash Flow from Operations was -12.444 + -16.691 + -10.225 + -10.082 = $-49.4 Mil.
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 $137.3 Mil.
Total Current Liabilities was $39.2 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)
=(44.204 / 251.418) / (38.831 / 222.722)
=0.17581876 / 0.17434739
=1.0084

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)
=(48.839 / 222.722) / (46.802 / 251.418)
=0.73878647 / 0.74479552
=0.9919

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 - (143.964 + 44.761) / 450.547) / (1 - (121.52 + 38.26) / 443.789)
=0.58112028 / 0.63996404
=0.9081

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
=251.418 / 222.722
=1.1288

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))
=(20.348 / (20.348 + 38.26)) / (27.347 / (27.347 + 44.761))
=0.3471881 / 0.37925057
=0.9155

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)
=(147.202 / 251.418) / (137.331 / 222.722)
=0.58548712 / 0.61660276
=0.9495

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)
=((283.939 + 57.88) / 450.547) / ((230 + 39.207) / 443.789)
=0.75867557 / 0.60661035
=1.2507

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
=(-49.46 - -0.015 - -49.442) / 450.547
=-0

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 -2.48 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

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.18541.10561.46881.26361.18981.01350.71880.83550.87911.0084
GMI 0.98660.9810.97250.98581.00061.00521.01871.00850.99440.9919
AQI 0.77030.42864.57894.62835.72186.48091.10231.12411.02110.9081
SGI 1.13211.1111.10561.19681.29031.38551.4611.32551.20031.1288
DEPI 0.9821.02421.08170.95650.82160.77490.70310.8180.89060.9155
SGAI 0.98531.03061.05931.08221.08231.02510.96860.93580.93210.9495
LVGI 0.58670.64725.99946.33345.40036.49081.18761.2291.28511.2507
TATA -0.0212-0.0346-0.0184-0.0342-0.0442-0.0622-0.0456-0.03280.0008-0
M-score -2.26-2.57-2.24-2.53-1.82-2.02-2.58-2.52-2.50-2.48
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