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Synaptics Inc (NAS:SYNA)
Beneish M-Score
-3.42 (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 -3.42 suggests that the company is not a manipulator.

SYNA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Max: -1.52
Current: -3.42

-3.42
-1.52

During the past 13 years, the highest Beneish M-Score of Synaptics Inc was -1.52. The lowest was -3.42. 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 * 0.795+0.528 * 0.9741+0.404 * 0.9918+0.892 * 0.9788+0.115 * 0.9611
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2916+4.679 * -0.1434-0.327 * 0.9784
=-3.42

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $253 Mil.
Revenue was 323.9 + 402.5 + 470.5 + 470 = $1,667 Mil.
Gross Profit was 108.1 + 144.4 + 165.2 + 163.8 = $582 Mil.
Total Current Assets was $780 Mil.
Total Assets was $1,300 Mil.
Property, Plant and Equipment(Net PPE) was $113 Mil.
Depreciation, Depletion and Amortization(DDA) was $111 Mil.
Selling, General & Admin. Expense(SGA) was $162 Mil.
Total Current Liabilities was $351 Mil.
Long-Term Debt was $217 Mil.
Net Income was -7.1 + 20.5 + 35 + 23.8 = $72 Mil.
Non Operating Income was 2.1 + 0 + 0 + 0 = $2 Mil.
Cash Flow from Operations was 113.2 + 36.6 + 94.5 + 12.3 = $257 Mil.
Accounts Receivable was $325 Mil.
Revenue was 478.9 + 477.6 + 463.7 + 282.8 = $1,703 Mil.
Gross Profit was 167.3 + 164.3 + 126.8 + 120.3 = $579 Mil.
Total Current Assets was $916 Mil.
Total Assets was $1,519 Mil.
Property, Plant and Equipment(Net PPE) was $123 Mil.
Depreciation, Depletion and Amortization(DDA) was $112 Mil.
Selling, General & Admin. Expense(SGA) was $128 Mil.
Total Current Liabilities was $447 Mil.
Long-Term Debt was $231 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)
=(252.6 / 1666.9) / (324.6 / 1703)
=0.15153878 / 0.19060482
=0.795

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)
=(578.7 / 1703) / (581.5 / 1666.9)
=0.3398121 / 0.34885116
=0.9741

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 - (780.1 + 112.7) / 1300.2) / (1 - (916 + 123.4) / 1519.4)
=0.31333641 / 0.31591418
=0.9918

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
=1666.9 / 1703
=0.9788

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))
=(112.4 / (112.4 + 123.4)) / (110.9 / (110.9 + 112.7))
=0.47667515 / 0.49597496
=0.9611

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)
=(161.7 / 1666.9) / (127.9 / 1703)
=0.09700642 / 0.07510276
=1.2916

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)
=((216.7 + 350.8) / 1300.2) / ((231.1 + 446.7) / 1519.4)
=0.43647131 / 0.44609714
=0.9784

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
=(72.2 - 2.1 - 256.6) / 1300.2
=-0.1434

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 -3.42 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.15290.90360.9321.10110.7951.2121.17770.92040.92570.795
GMI 1.13120.97171.00930.99820.98590.88190.94951.06671.35450.9741
AQI 0.62013.3381.04690.88090.93311.06340.80991.83311.63620.9918
SGI 1.44561.35341.31091.08791.16250.91591.21041.42781.79740.9788
DEPI 0.95340.82620.86090.79320.8421.01341.87880.74380.44250.9611
SGAI 0.89490.98110.85621.02160.98241.11560.93880.87990.71161.2916
LVGI 0.89751.31130.62680.72720.79810.95621.1031.13451.78910.9784
TATA 0.0006-0.1208-0.0617-0.1461-0.0569-0.0874-0.0046-0.0832-0.0618-0.1434
M-score -1.98-2.01-2.40-2.98-2.77-2.81-2.18-2.24-1.95-3.42

Synaptics Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.92840.92040.95181.63551.1970.92570.95690.67110.84580.795
GMI 1.00681.06671.11181.2851.3311.35451.3481.08771.01860.9741
AQI 1.58481.83311.71681.61821.65741.63621.8260.84410.86960.9918
SGI 1.51111.42781.32741.53991.78361.79741.87581.49891.18390.9788
DEPI 0.99810.74380.73740.47330.40790.44250.40990.79450.91560.9611
SGAI 0.79860.87991.0090.82440.72860.71160.66850.95971.16871.2916
LVGI 0.99241.13451.17632.30861.9611.78911.85891.01720.95230.9784
TATA -0.0739-0.0832-0.1218-0.0321-0.0658-0.0618-0.0349-0.0998-0.0446-0.1434
M-score -2.16-2.24-2.54-1.62-1.80-1.95-1.68-2.84-2.73-3.42
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