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Synaptics, Inc. (NAS:SYNA)
Beneish M-Score
-1.83 (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 -1.83 signals that the company is a manipulator.

SYNA' s 10-Year Beneish M-Score Range
Min: -3.28   Max: -0.9
Current: -1.83

-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 -2.40.


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 * 0.8814+0.528 * 0.972+0.404 * 1.6811+0.892 * 1.5237+0.115 * 1.0785
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7647+4.679 * -0.011-0.327 * 0.9047
=-1.83

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $133.0 Mil.
Revenue was 205.763 + 222.607 + 230.183 + 163.324 = $821.9 Mil.
Gross Profit was 94.545 + 109.279 + 115.121 + 81.083 = $400.0 Mil.
Total Current Assets was $573.1 Mil.
Total Assets was $822.0 Mil.
Property, Plant and Equipment(Net PPE) was $64.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $14.3 Mil.
Selling, General & Admin. Expense(SGA) was $85.7 Mil.
Total Current Liabilities was $149.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 17.334 + 34.939 + 45.32 + 36.446 = $134.0 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 56.854 + 28.92 + 32.542 + 24.739 = $143.1 Mil.
Accounts Receivable was $99.1 Mil.
Revenue was 143.04 + 127.041 + 137.607 + 131.705 = $539.4 Mil.
Gross Profit was 69.03 + 60.57 + 63.404 + 62.18 = $255.2 Mil.
Total Current Assets was $429.6 Mil.
Total Assets was $544.4 Mil.
Property, Plant and Equipment(Net PPE) was $42.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.3 Mil.
Selling, General & Admin. Expense(SGA) was $73.5 Mil.
Total Current Liabilities was $107.3 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)
=(133.022 / 821.877) / (99.052 / 539.393)
=0.16185147 / 0.18363605
=0.8814

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)
=(109.279 / 539.393) / (94.545 / 821.877)
=0.47309476 / 0.4867249
=0.972

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 - (573.077 + 64.666) / 822.026) / (1 - (429.613 + 42.193) / 544.407)
=0.22418147 / 0.13335795
=1.6811

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
=821.877 / 539.393
=1.5237

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))
=(10.252 / (10.252 + 42.193)) / (14.316 / (14.316 + 64.666))
=0.19548098 / 0.18125649
=1.0785

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)
=(85.673 / 821.877) / (73.531 / 539.393)
=0.10424066 / 0.13632175
=0.7647

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 + 149.767) / 822.026) / ((2.305 + 107.325) / 544.407)
=0.18219253 / 0.20137507
=0.9047

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
=(134.039 - 0 - 143.055) / 822.026
=-0.011

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 -1.83 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

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.2540.98911.13591.15290.90360.9321.10110.7951.2121.1777
GMI 0.99880.91111.02791.13120.97171.00930.99820.98590.88190.9495
AQI 0.85533.23710.92490.62013.3381.04690.88090.93311.06340.8099
SGI 1.32351.56170.88671.44561.35341.31091.08791.16250.91591.2104
DEPI 1.12024.0040.84090.95340.82620.86090.79320.8421.01341.872
SGAI 0.95390.86931.71520.89490.98110.85621.02160.98241.11560.9391
LVGI 1.02093.09930.91960.89751.31130.62680.72720.79810.95621.103
TATA -0.0198-0.0269-0.0517-0.0238-0.1208-0.0617-0.1461-0.0569-0.0874-0.0047
M-score -2.09-1.58-2.83-2.09-2.01-2.40-2.98-2.77-2.81-2.18

Synaptics, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.77910.70271.06071.2121.09851.19541.0841.17771.12070.8814
GMI 0.96340.9280.89260.88190.8980.9290.95050.94950.95350.972
AQI 0.95230.87140.71171.06341.08031.22061.46030.80990.82571.6811
SGI 1.05530.98250.92190.91590.93610.95521.03071.21041.40111.5237
DEPI 0.830.85420.90971.01341.46121.57491.85961.8721.29911.0785
SGAI 1.06871.08561.12461.11561.10711.12421.06020.93910.80850.7647
LVGI 0.94390.7370.85650.95620.87131.02011.15681.1031.04890.9047
TATA -0.0965-0.1011-0.0942-0.0874-0.0945-0.083-0.0422-0.00470.0385-0.011
M-score -3.14-3.28-3.09-2.81-2.83-2.64-2.38-2.18-1.87-1.83
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