Switch to:
Synaptics Inc (NAS:SYNA)
Beneish M-Score
-1.68 (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 -1.68 signals that the company is a manipulator.

SYNA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Max: -0.9
Current: -1.68

-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 -2.29.


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 * 0.9569+0.528 * 1.3478+0.404 * 1.826+0.892 * 1.8758+0.115 * 0.4099
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6686+4.679 * -0.0356-0.327 * 1.8589
=-1.68

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $349 Mil.
Revenue was 470 + 478.956 + 477.598 + 463.705 = $1,890 Mil.
Gross Profit was 163.8 + 167.335 + 164.345 + 126.831 = $622 Mil.
Total Current Assets was $812 Mil.
Total Assets was $1,394 Mil.
Property, Plant and Equipment(Net PPE) was $117 Mil.
Depreciation, Depletion and Amortization(DDA) was $131 Mil.
Selling, General & Admin. Expense(SGA) was $137 Mil.
Total Current Liabilities was $417 Mil.
Long-Term Debt was $228 Mil.
Net Income was 23.8 + 31.359 + 31.478 + 19.972 = $107 Mil.
Non Operating Income was 0 + 0.2 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 12.3 + 31.568 + 128.129 + -15.997 = $156 Mil.
Accounts Receivable was $194 Mil.
Revenue was 282.8 + 314.859 + 204.271 + 205.763 = $1,008 Mil.
Gross Profit was 120.3 + 139.846 + 92.43 + 94.545 = $447 Mil.
Total Current Assets was $741 Mil.
Total Assets was $1,024 Mil.
Property, Plant and Equipment(Net PPE) was $96 Mil.
Depreciation, Depletion and Amortization(DDA) was $27 Mil.
Selling, General & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $255 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)
=(349.1 / 1890.259) / (194.488 / 1007.693)
=0.18468369 / 0.19300323
=0.9569

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)
=(167.335 / 1007.693) / (163.8 / 1890.259)
=0.44370756 / 0.32921996
=1.3478

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 - (812 + 117.4) / 1394.1) / (1 - (740.632 + 96.481) / 1024.049)
=0.33333333 / 0.18254595
=1.826

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
=1890.259 / 1007.693
=1.8758

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))
=(26.594 / (26.594 + 96.481)) / (130.9 / (130.9 + 117.4))
=0.21607963 / 0.52718486
=0.4099

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)
=(137.427 / 1890.259) / (109.576 / 1007.693)
=0.07270274 / 0.10873947
=0.6686

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)
=((227.5 + 416.7) / 1394.1) / ((0 + 254.554) / 1024.049)
=0.46209024 / 0.248576
=1.8589

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
=(106.609 - 0.2 - 156) / 1394.1
=-0.0356

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 -1.68 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 1.02791.13120.97171.00930.99820.98590.88190.94951.06671.3545
AQI 0.92490.62013.3381.04690.88090.93311.06340.80991.83311.6362
SGI 0.88671.44561.35341.31091.08791.16250.91591.21041.42781.7974
DEPI 0.84090.95340.82620.86090.79320.8421.01341.8720.74650.4425
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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.12070.88140.92840.92040.95181.63551.19690.92560.95690.6711
GMI 0.95350.9721.00681.06671.11181.2851.33091.35431.34781.0876
AQI 0.82571.68111.58481.83311.71681.61821.65741.63621.8260.8441
SGI 1.40111.52371.5111.42781.32741.53991.78361.79741.87581.4989
DEPI 1.29911.07850.99580.74650.73980.46860.40910.44250.40990.9511
SGAI 0.80850.76470.79880.87961.00870.82460.72880.71170.66860.959
LVGI 1.04890.90470.99241.13451.17632.30861.9611.78911.85891.0172
TATA 0.0385-0.011-0.0739-0.0832-0.1218-0.0327-0.0665-0.0625-0.0356-0.0348
M-score -1.87-1.83-2.16-2.24-2.54-1.63-1.81-1.96-1.68-2.52
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)

GuruFocus Premium Plus Membership

FEEDBACK