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Synaptics Inc (NAS:SYNA)
Beneish M-Score
-1.96 (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 -1.96 signals that the company is a manipulator.

SYNA' s 10-Year Beneish M-Score Range
Min: -2.98   Max: -1.58
Current: -1.96

-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 -2.21.


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 * 0.9257+0.528 * 1.3545+0.404 * 1.6362+0.892 * 1.7974+0.115 * 0.4425
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7116+4.679 * -0.0625-0.327 * 1.7891
=-1.96

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $325 Mil.
Revenue was 478.956 + 477.598 + 463.705 + 282.741 = $1,703 Mil.
Gross Profit was 167.335 + 164.345 + 126.831 + 120.189 = $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.
Net Income was 31.359 + 31.478 + 19.972 + 26.586 = $109 Mil.
Non Operating Income was 0.2 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 31.568 + 128.129 + -16.017 + 60.42 = $204 Mil.
Accounts Receivable was $195 Mil.
Revenue was 314.859 + 204.271 + 205.763 + 222.607 = $948 Mil.
Gross Profit was 139.846 + 92.43 + 94.545 + 109.279 = $436 Mil.
Total Current Assets was $743 Mil.
Total Assets was $1,020 Mil.
Property, Plant and Equipment(Net PPE) was $81 Mil.
Depreciation, Depletion and Amortization(DDA) was $22 Mil.
Selling, General & Admin. Expense(SGA) was $100 Mil.
Total Current Liabilities was $254 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)
=(324.6 / 1703) / (195.1 / 947.5)
=0.19060482 / 0.20591029
=0.9257

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)
=(164.345 / 947.5) / (167.335 / 1703)
=0.46026385 / 0.3398121
=1.3545

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 - (916 + 123.4) / 1519.4) / (1 - (742.5 + 80.8) / 1020.3)
=0.31591418 / 0.19308047
=1.6362

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
=1703 / 947.5
=1.7974

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))
=(21.6 / (21.6 + 80.8)) / (112.4 / (112.4 + 123.4))
=0.2109375 / 0.47667515
=0.4425

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)
=(127.9 / 1703) / (100 / 947.5)
=0.07510276 / 0.1055409
=0.7116

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)
=((231.1 + 446.7) / 1519.4) / ((0 + 254.4) / 1020.3)
=0.44609714 / 0.24933843
=1.7891

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
=(109.395 - 0.2 - 204.1) / 1519.4
=-0.0625

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 -1.96 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 1.13591.15290.90360.9321.10110.7951.2121.17770.92040.9257
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 -0.0517-0.0238-0.1208-0.0617-0.1461-0.0569-0.0874-0.0047-0.0832-0.0618
M-score -2.83-2.09-2.01-2.40-2.98-2.77-2.81-2.18-2.24-1.95

Synaptics Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.0841.17771.12070.88140.92840.92040.95191.63561.1970.9257
GMI 0.95050.94950.95350.9721.00681.06671.1121.28521.33111.3545
AQI 1.46030.80990.82571.68111.58481.83311.71681.61821.65741.6362
SGI 1.03071.21041.40111.52371.5111.42781.32731.53991.78361.7974
DEPI 1.71111.8721.29911.07850.99580.74650.73960.46860.40910.4425
SGAI 1.06020.93910.80850.76470.79880.87961.00850.82440.72860.7116
LVGI 1.15681.1031.04890.90470.99241.13451.17632.30861.9611.7891
TATA -0.0422-0.00470.0385-0.011-0.0739-0.0832-0.1218-0.0328-0.0665-0.0625
M-score -2.39-2.18-1.87-1.83-2.16-2.24-2.54-1.63-1.81-1.96
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