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Synaptics Inc (NAS:SYNA)
Beneish M-Score
-2.24 (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.

Synaptics Inc has a M-score of -2.24 suggests that the company is not a manipulator.

SYNA' s 10-Year Beneish M-Score Range
Min: -2.98   Max: -1.58
Current: -2.24

-2.98
-1.58

During the past 13 years, the highest Beneish M-Score of Synaptics Inc was -1.58. The lowest was -2.98. And the median was -2.24.


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 Synaptics 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 * 0.9202+0.528 * 1.0668+0.404 * 1.8335+0.892 * 1.4279+0.115 * 0.7459
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8472+4.679 * -0.0832-0.327 * 1.1345
=-2.24

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $195.1 Mil.
Revenue was 314.898 + 204.271 + 205.763 + 222.607 = $947.5 Mil.
Gross Profit was 139.826 + 92.43 + 94.545 + 109.279 = $436.1 Mil.
Total Current Assets was $742.4 Mil.
Total Assets was $1,020.3 Mil.
Property, Plant and Equipment(Net PPE) was $80.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.6 Mil.
Selling, General & Admin. Expense(SGA) was $96.3 Mil.
Total Current Liabilities was $254.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 34.472 + -40.056 + 17.334 + 34.939 = $46.7 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 40.493 + 5.329 + 56.854 + 28.92 = $131.6 Mil.
Accounts Receivable was $148.5 Mil.
Revenue was 230.183 + 163.324 + 143.04 + 127.041 = $663.6 Mil.
Gross Profit was 115.121 + 81.083 + 69.03 + 60.57 = $325.8 Mil.
Total Current Assets was $560.4 Mil.
Total Assets was $691.3 Mil.
Property, Plant and Equipment(Net PPE) was $58.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General & Admin. Expense(SGA) was $79.6 Mil.
Total Current Liabilities was $149.6 Mil.
Long-Term Debt was $2.3 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)
=(195.057 / 947.539) / (148.454 / 663.588)
=0.20585643 / 0.22371411
=0.9202

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)
=(92.43 / 663.588) / (139.826 / 947.539)
=0.49097331 / 0.4602238
=1.0668

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 - (742.431 + 80.849) / 1020.333) / (1 - (560.42 + 58.035) / 691.266)
=0.19312617 / 0.10532993
=1.8335

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
=947.539 / 663.588
=1.4279

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))
=(10.846 / (10.846 + 58.035)) / (21.636 / (21.636 + 80.849))
=0.15745997 / 0.21111382
=0.7459

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)
=(96.313 / 947.539) / (79.62 / 663.588)
=0.10164542 / 0.11998409
=0.8472

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)
=((0 + 254.408) / 1020.333) / ((2.305 + 149.626) / 691.266)
=0.24933821 / 0.21978659
=1.1345

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
=(46.689 - 0 - 131.596) / 1020.333
=-0.0832

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.

Synaptics Inc has a M-score of -2.24 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.

Synaptics Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 0.98911.13591.15290.90360.9321.10110.7951.2121.17770.9202
GMI 0.91111.02791.13120.97171.00930.99820.98590.88190.94951.0668
AQI 3.23710.92490.62013.3381.04690.88090.93311.06340.80991.8335
SGI 1.56170.88671.44561.35341.31091.08791.16250.91591.21041.4279
DEPI 4.0040.84090.95340.82620.86090.79320.8421.01341.8720.7459
SGAI 0.86931.71520.89490.98110.85621.02160.98241.11560.93910.829
LVGI 3.09930.91960.89751.31130.62680.72720.79810.95621.1031.1345
TATA -0.0269-0.0517-0.0238-0.1208-0.0617-0.1461-0.0569-0.0874-0.0047-0.0832
M-score -1.58-2.83-2.09-2.01-2.40-2.98-2.77-2.81-2.18-2.23

Synaptics Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.2121.09851.19541.0841.17771.12070.88140.92840.92020.9518
GMI 0.88190.8980.9290.95050.94950.95350.9721.00681.06681.1121
AQI 1.06341.08031.22061.46030.80990.82571.68111.58481.83351.7168
SGI 0.91590.93610.95521.03071.21041.40111.52371.5111.42791.3274
DEPI 1.01341.46121.57491.71111.8721.29911.07850.36650.74591.0106
SGAI 1.11561.10711.12421.06020.93910.80850.76470.79830.84720.9746
LVGI 0.95620.87131.02011.15681.1031.04890.90470.99241.13451.1763
TATA -0.0874-0.0945-0.083-0.0422-0.00470.0385-0.011-0.0739-0.0832-0.0628
M-score -2.81-2.83-2.64-2.39-2.18-1.87-1.83-2.23-2.24-2.23
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