Thoratec (FRA:TL1) Beneish M-Score : -2.68 (As of Jun. 14, 2024)

View and export this data going back to . Start your Free Trial

What is Thoratec Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

The historical rank and industry rank for Thoratec's Beneish M-Score or its related term are showing as below:

FRA:TL1' s Beneish M-Score Range Over the Past 10 Years
Min: -5.16 Med: -2.48 Max: 10.86
Current: -2.68

During the past 13 years, the highest Beneish M-Score of Thoratec was 10.86. The lowest was -5.16. And the median was -2.48.

Thoratec Beneish M-Score Historical Data

The historical data trend for Thoratec'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.

* Premium members only.

Thoratec Beneish M-Score Chart

Thoratec Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Beneish M-Score

Get a 7-Day Free Trial

-2.81

-2.20

-2.89

-2.83

-2.59

Thoratec Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Beneish M-Score	Get a 7-Day Free Trial															-3.02	-2.83	-2.59	-2.98	-2.68

Competitive Comparison of Thoratec's Beneish M-Score

For the Medical Devices subindustry, Thoratec'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.

Thoratec's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Thoratec's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Thoratec's Beneish M-Score falls into.

Thoratec 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 Thoratec for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2509

0.528 * 1.0184

0.404 * 1.1009

0.892 * 1.1277

0.115 * 1.0228

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0911

4.679 * -0.075897

0.327 * 1.157

-2.50

This Year (Jun15) TTM:

Last Year (Jun14) TTM:

Total Receivables was €84.1 Mil.
Revenue was 114.665 + 112.089 + 103.776 + 82.131 = €412.7 Mil.
Gross Profit was 79.116 + 77.781 + 67.723 + 49.053 = €273.7 Mil.
Total Current Assets was €410.7 Mil.
Total Assets was €728.1 Mil.
Property, Plant and Equipment(Net PPE) was €44.0 Mil.
Depreciation, Depletion and Amortization(DDA) was €12.9 Mil.
Selling, General, & Admin. Expense(SGA) was €131.6 Mil.
Total Current Liabilities was €74.2 Mil.
Long-Term Debt & Capital Lease Obligation was €0.0 Mil.
Net Income was 11.804 + 9.961 + 9.604 + 2.248 = €33.6 Mil.
Non Operating Income was 0 + 0.618 + -2.067 + 0 = €-1.4 Mil.
Cash Flow from Operations was 19.014 + 31.771 + 18.421 + 21.121 = €90.3 Mil.

Total Receivables was €59.6 Mil.
Revenue was 86.894 + 90.879 + 93.566 + 94.58 = €365.9 Mil.
Gross Profit was 61.644 + 61.94 + 59.606 + 63.944 = €247.1 Mil.
Total Current Assets was €340.1 Mil.
Total Assets was €578.7 Mil.
Property, Plant and Equipment(Net PPE) was €41.2 Mil.
Depreciation, Depletion and Amortization(DDA) was €12.5 Mil.
Selling, General, & Admin. Expense(SGA) was €106.9 Mil.
Total Current Liabilities was €51.0 Mil.
Long-Term Debt & Capital Lease Obligation was €0.0 Mil.

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)
	=	(84.102 / 412.661)	/	(59.617 / 365.919)
	=	0.203804	/	0.162924
	=	1.2509

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)
	=	(247.134 / 365.919)	/	(273.673 / 412.661)
	=	0.675379	/	0.663191
	=	1.0184

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 - (410.681 + 43.99) / 728.109)	/	(1 - (340.08 + 41.194) / 578.678)
	=	0.375545	/	0.341129
	=	1.1009

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
	=	412.661	/	365.919
	=	1.1277

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))
	=	(12.484 / (12.484 + 41.194))	/	(12.946 / (12.946 + 43.99))
	=	0.232572	/	0.227378
	=	1.0228

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)
	=	(131.556 / 412.661)	/	(106.918 / 365.919)
	=	0.318799	/	0.29219
	=	1.0911

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)
	=	((0 + 74.186) / 728.109)	/	((0 + 50.96) / 578.678)
	=	0.101889	/	0.088063
	=	1.157

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
	=	(33.617 - -1.449	-	90.327)	/	728.109
	=	-0.075897

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.

Thoratec has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.

Thoratec Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Thoratec's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Thoratec (FRA:TL1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Thoratec Corp (FRA:TL1) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.thoratec.com

Thoratec Corporation incorporated in the State of California in 1976 provides mechanical circulatory support with a product portfolio to treat the full range of clinical needs for advanced heart failure patients. It develops, manufactures and markets proprietary medical devices used for circulatory support. Following the sale of ITC in 2010, the Company has one operating segment: Cardiovascular group. This segment is organized and operates to develop and manufacture mechanical circulatory products to support the cardiovascular systems of humans. The Company's VAD products primarily serve patients suffering from late-stage HF. HF is a chronic disease that occurs when degeneration of the heart muscle reduces the pumping power of the heart, causing the heart to become too weak to pump blood at a level sufficient to meet the body's demands. Hospitals that perform open heart surgery and heart transplants are the potential customers for its Thoratec and HeartMate products. The Company estimates that it sells into 293 of these centers. According to the Company's estimates, it is in approximately 149 centers in the United States and 144 centers internationally. Competition from medical device companies and medical device divisions of healthcare companies, pharmaceutical companies and gene- and cell-based therapies is intense and is expected to increase. It therefore continues to expect new competitors both from the pharmacological and the medical device space. Among the medical device competitors are Aachen Innovative Solutions GmbH, AbioMed, Inc., Berlin Heart GmbH, HeartWare International Inc., Jarvik Heart, Inc., Maquet Cardiovascular, LLC (a division of Getinge AB), MicroMed Technology, Inc., Sun Medical Technology Research Corporation, SynCardia Systems, Inc., and Terumo Heart, Inc. All of the Company's proposed products will require regulatory approval prior to commercialization. In particular, medical devices are subject to rigorous pre-clinical testing as a condition of approval by the FDA and by similar authorities in foreign countries.

Thoratec (FRA:TL1) Headlines

No Headlines