Switch to:
Synaptics Inc (NAS:SYNA)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

SYNA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Max: -0.9
Current: -2.73

-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 -2.34.


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 * 0.8458+0.528 * 1.0186+0.404 * 0.8696+0.892 * 1.1839+0.115 * 0.9156
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1687+4.679 * -0.0446-0.327 * 0.9523
=-2.73

* 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 $320 Mil.
Revenue was 402.5 + 470.5 + 470 + 478.9 = $1,822 Mil.
Gross Profit was 144.4 + 165.2 + 163.8 + 167.3 = $641 Mil.
Total Current Assets was $907 Mil.
Total Assets was $1,450 Mil.
Property, Plant and Equipment(Net PPE) was $114 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General & Admin. Expense(SGA) was $164 Mil.
Total Current Liabilities was $357 Mil.
Long-Term Debt was $220 Mil.
Net Income was 20.5 + 35 + 23.8 + 31.3 = $111 Mil.
Non Operating Income was 0 + 0 + 0 + 0.2 = $0 Mil.
Cash Flow from Operations was 36.6 + 94.5 + 12.3 + 31.6 = $175 Mil.
Accounts Receivable was $320 Mil.
Revenue was 477.6 + 463.7 + 282.8 + 314.859 = $1,539 Mil.
Gross Profit was 164.3 + 126.8 + 120.3 + 139.846 = $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.



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)
=(320 / 1821.9) / (319.567 / 1538.959)
=0.17564081 / 0.20765141
=0.8458

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)
=(551.246 / 1538.959) / (640.7 / 1821.9)
=0.35819408 / 0.35166584
=1.0186

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 - (907.3 + 113.9) / 1449.5) / (1 - (880.041 + 117.692) / 1511.217)
=0.2954812 / 0.33978178
=0.8696

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
=1821.9 / 1538.959
=1.1839

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))
=(92.488 / (92.488 + 117.692)) / (105.4 / (105.4 + 113.9))
=0.44004187 / 0.48062016
=0.9156

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)
=(164.2 / 1821.9) / (118.675 / 1538.959)
=0.09012569 / 0.07711382
=1.1687

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)
=((220.2 + 357.3) / 1449.5) / ((234.581 + 397.633) / 1511.217)
=0.39841325 / 0.4183476
=0.9523

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
=(110.6 - 0.2 - 175) / 1449.5
=-0.0446

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 -2.73 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DSRI 1.13591.15290.90360.9321.10110.7951.2121.17770.92040.9257
GMI 1.02791.13120.97171.00930.99820.98590.88190.94951.06681.3543
AQI 0.92490.62013.3381.04690.88090.93311.06340.80991.83311.6362
SGI 0.88671.44561.35341.31091.08791.16250.91591.21041.42791.7973
DEPI 0.84090.95340.82620.86090.79320.8421.01341.8720.74550.4431
SGAI 1.71520.89490.98110.85621.02160.98241.11560.93910.87960.7116
LVGI 0.91960.89751.31130.62680.72720.79810.95621.1031.13451.7891
TATA -0.03340.0006-0.1208-0.0575-0.1461-0.0569-0.0874-0.0047-0.0832-0.0618
M-score -2.74-1.98-2.01-2.38-2.98-2.77-2.81-2.18-2.24-1.95

Synaptics Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.88140.92840.92040.95181.63551.1970.92570.95690.67110.8458
GMI 0.9721.00681.06671.11181.2851.3311.35451.3481.08771.0186
AQI 1.68111.58481.83311.71681.61821.65741.63621.8260.84410.8696
SGI 1.52371.51111.42781.32741.53991.78361.79741.87581.49891.1839
DEPI 1.08130.99810.74380.73740.47330.40790.44250.40990.79450.9156
SGAI 0.76450.79860.87991.0090.82440.72860.71160.66850.95971.1687
LVGI 0.90470.99241.13451.17632.30861.9611.78911.85891.01720.9523
TATA -0.0109-0.0739-0.0832-0.1218-0.0321-0.0658-0.0618-0.0349-0.0998-0.0446
M-score -1.83-2.16-2.24-2.54-1.62-1.80-1.95-1.68-2.84-2.73
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK