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Synaptics Inc (NAS:SYNA)
Beneish M-Score
-1.81 (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 -1.81 signals that the company is a manipulator.

SYNA' s 10-Year Beneish M-Score Range
Min: -3.28   Max: -0.9
Current: -1.81

-3.28
-0.9

During the past 13 years, the highest Beneish M-Score of Synaptics Inc was -0.90. The lowest was -3.28. And the median was -2.37.


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 * 1.197+0.528 * 1.3312+0.404 * 1.6574+0.892 * 1.7836+0.115 * 0.409
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7286+4.679 * -0.0665-0.327 * 1.961
=-1.81

* 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 $320 Mil.
Revenue was 477.598 + 463.705 + 282.741 + 314.898 = $1,539 Mil.
Gross Profit was 164.345 + 126.831 + 120.189 + 139.826 = $551 Mil.
Total Current Assets was $880 Mil.
Total Assets was $1,511 Mil.
Property, Plant and Equipment(Net PPE) was $118 Mil.
Depreciation, Depletion and Amortization(DDA) was $92 Mil.
Selling, General & Admin. Expense(SGA) was $119 Mil.
Total Current Liabilities was $398 Mil.
Long-Term Debt was $235 Mil.
Net Income was 31.478 + 19.972 + 26.586 + 34.472 = $113 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 128.129 + -16.017 + 60.42 + 40.493 = $213 Mil.
Accounts Receivable was $150 Mil.
Revenue was 204.271 + 205.763 + 222.607 + 230.183 = $863 Mil.
Gross Profit was 92.43 + 94.545 + 109.279 + 115.121 = $411 Mil.
Total Current Assets was $634 Mil.
Total Assets was $895 Mil.
Property, Plant and Equipment(Net PPE) was $77 Mil.
Depreciation, Depletion and Amortization(DDA) was $17 Mil.
Selling, General & Admin. Expense(SGA) was $91 Mil.
Total Current Liabilities was $191 Mil.
Long-Term Debt was $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)
=(319.567 / 1538.942) / (149.687 / 862.824)
=0.2076537 / 0.17348497
=1.197

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)
=(126.831 / 862.824) / (164.345 / 1538.942)
=0.47677742 / 0.3581623
=1.3312

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 - (880.041 + 117.692) / 1511.217) / (1 - (634.368 + 76.993) / 894.806)
=0.33978178 / 0.20501092
=1.6574

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
=1538.942 / 862.824
=1.7836

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))
=(16.89 / (16.89 + 76.993)) / (92.429 / (92.429 + 117.692))
=0.17990478 / 0.43988464
=0.409

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)
=(118.712 / 1538.942) / (91.346 / 862.824)
=0.07713871 / 0.10586864
=0.7286

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)
=((234.581 + 397.633) / 1511.217) / ((0 + 190.895) / 894.806)
=0.4183476 / 0.21333675
=1.961

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
=(112.508 - 0 - 213.025) / 1511.217
=-0.0665

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 -1.81 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.

Synaptics Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.13591.15290.90360.9321.10110.7951.2121.17770.9202
GMI 1.02791.13120.97171.00930.99820.98590.88190.94951.0668
AQI 0.92490.62013.3381.04690.88090.93311.06340.80991.8335
SGI 0.88671.44561.35341.31091.08791.16250.91591.21041.4279
DEPI 0.84090.95340.82620.86090.79320.8421.01341.8720.7459
SGAI 1.71520.89490.98110.85621.02160.98241.11560.93910.8796
LVGI 0.91960.89751.31130.62680.72720.79810.95621.1031.1345
TATA -0.0517-0.0238-0.1208-0.0617-0.1461-0.0569-0.0874-0.0047-0.0832
M-score -2.83-2.09-2.01-2.40-2.98-2.77-2.81-2.18-2.24

Synaptics Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0841.17771.12070.88140.92840.92020.95181.63551.1970.926
GMI 0.95050.94950.95350.9721.00681.06681.11211.28531.33121.3545
AQI 1.46030.80990.82571.68111.58481.83351.71681.61821.65741.66
SGI 1.03071.21041.40111.52371.5111.42791.32741.53991.78361.7973
DEPI 1.71111.8721.29911.07850.99580.74590.73880.46850.4090.5145
SGAI 1.06020.93910.80850.76470.79880.87961.00850.82440.72860.7116
LVGI 1.15681.1031.04890.90470.99241.13451.17632.30861.9611.7835
TATA -0.0422-0.00470.0385-0.011-0.0739-0.0832-0.1218-0.0328-0.0665-0.0402
M-score -2.39-2.18-1.87-1.83-2.16-2.24-2.54-1.63-1.81-1.83
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