Varian Medical Systems Beneish M-Score Historical Data
The historical data trend for Varian Medical Systems's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Varian Medical Systems Beneish M-Score Chart
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Varian Medical Systems Annual Data
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| Beneish M-Score |
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-2.45 |
-2.49 |
-2.69 |
-2.27 |
-2.68 |
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Varian Medical Systems Quarterly Data
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| Beneish M-Score |
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-2.29 |
-2.47 |
-2.61 |
-2.68 |
-2.66 |
Competitive Comparison of Varian Medical Systems's Beneish M-Score
For the Medical Instruments & Supplies subindustry, Varian Medical Systems's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Varian Medical Systems's Beneish M-Score Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Varian Medical Systems's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Varian Medical Systems's Beneish M-Score falls into.
Varian Medical Systems Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Varian Medical Systems 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 * 1.0134 | + | 0.528 * 0.9766 | + | 0.404 * 1.0264 | + | 0.892 * 0.9412 | + | 0.115 * 1.0499 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0588 | + | 4.679 * -0.039504 | - | 0.327 * 0.8485 |
| = | -2.66 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec20) TTM: | Last Year (Dec19) TTM: |
Total Receivables was $1,029 Mil.
Revenue was 778.8 + 850.5 + 694.3 + 794.5 = $3,118 Mil.
Gross Profit was 359 + 374.7 + 298.5 + 337.2 = $1,369 Mil.
Total Current Assets was $2,641 Mil.
Total Assets was $4,526 Mil.
Property, Plant and Equipment(Net PPE) was $466 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General, & Admin. Expense(SGA) was $657 Mil.
Total Current Liabilities was $1,745 Mil.
Long-Term Debt & Capital Lease Obligation was $102 Mil.
Net Income was 96.5 + 76.6 + 61.2 + 43.2 = $278 Mil.
Non Operating Income was -2 + -14.5 + -3.2 + -36.9 = $-57 Mil.
Cash Flow from Operations was 141.4 + 266.6 + 83 + 21.9 = $513 Mil.
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Total Receivables was $1,079 Mil.
Revenue was 828.9 + 878.9 + 825.8 + 779.4 = $3,313 Mil.
Gross Profit was 366.8 + 384.6 + 351.4 + 318.2 = $1,421 Mil.
Total Current Assets was $2,647 Mil.
Total Assets was $4,451 Mil.
Property, Plant and Equipment(Net PPE) was $444 Mil.
Depreciation, Depletion and Amortization(DDA) was $101 Mil.
Selling, General, & Admin. Expense(SGA) was $659 Mil.
Total Current Liabilities was $2,046 Mil.
Long-Term Debt & Capital Lease Obligation was $94 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (1029.3 / 3118.1) | / | (1079.2 / 3313) |
| = | 0.330105 | / | 0.325747 |
| | = | 1.0134 |
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) |
| = | (1421 / 3313) | / | (1369.4 / 3118.1) |
| = | 0.428916 | / | 0.439178 |
| | = | 0.9766 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (2641.3 + 466) / 4526.1) | / | (1 - (2647 + 444.4) / 4450.7) |
| = | 0.313471 | / | 0.305413 |
| | = | 1.0264 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 3118.1 | / | 3313 |
| | = | 0.9412 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (100.7 / (100.7 + 444.4)) | / | (99.5 / (99.5 + 466)) |
| = | 0.184737 | / | 0.17595 |
| | = | 1.0499 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (656.7 / 3118.1) | / | (659 / 3313) |
| = | 0.210609 | / | 0.198913 |
| | = | 1.0588 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((101.7 + 1744.9) / 4526.1) | / | ((93.7 + 2046.4) / 4450.7) |
| = | 0.407989 | / | 0.480846 |
| | = | 0.8485 |
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 |
| = | (277.5 - -56.6 | - | 512.9) | / | 4526.1 |
| | = | -0.039504 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Varian Medical Systems has a M-score of -2.66 suggests that the company is unlikely to be a manipulator.
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