Health Net Beneish M-Score Historical Data
The historical data trend for Health Net'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.
Health Net Beneish M-Score Chart
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Health Net Annual Data
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Trend |
Dec06 |
Dec07 |
Dec08 |
Dec09 |
Dec10 |
Dec11 |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
| Beneish M-Score |
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-2.57 |
-2.77 |
-2.51 |
-3.33 |
-1.96 |
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Health Net Quarterly Data
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Mar11 |
Jun11 |
Sep11 |
Dec11 |
Mar12 |
Jun12 |
Sep12 |
Dec12 |
Mar13 |
Jun13 |
Sep13 |
Dec13 |
Mar14 |
Jun14 |
Sep14 |
Dec14 |
Mar15 |
Jun15 |
Sep15 |
Dec15 |
| Beneish M-Score |
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-3.33 |
-3.30 |
-3.36 |
-2.28 |
-1.96 |
Competitive Comparison of Health Net's Beneish M-Score
For the Healthcare Plans subindustry, Health Net'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.
Health Net's Beneish M-Score Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Health Net's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Health Net's Beneish M-Score falls into.
Health Net 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 Health Net 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 * 0.948 | + | 0.528 * 0.9657 | + | 0.404 * 0.9828 | + | 0.892 * 1.1595 | + | 0.115 * 1.9529 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9915 | + | 4.679 * -0.040136 | - | 0.327 * 1.0461 |
| = | -2.50 |
* 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 (Dec15) TTM: | Last Year (Dec14) TTM: |
Total Receivables was $1,679 Mil.
Revenue was 4036.401 + 4153.667 + 4163.623 + 3889.896 = $16,244 Mil.
Gross Profit was 654.47 + 677.128 + 662.619 + 604.493 = $2,599 Mil.
Total Current Assets was $5,324 Mil.
Total Assets was $6,398 Mil.
Property, Plant and Equipment(Net PPE) was $146 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General, & Admin. Expense(SGA) was $2,086 Mil.
Total Current Liabilities was $3,872 Mil.
Long-Term Debt & Capital Lease Obligation was $400 Mil.
Net Income was 37.068 + 60.253 + 58.368 + 29.988 = $186 Mil.
Non Operating Income was 41.696 + -13.915 + -16.424 + 0 = $11 Mil.
Cash Flow from Operations was -138.567 + -30.681 + -260.275 + 860.618 = $431 Mil.
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Total Receivables was $1,527 Mil.
Revenue was 3758.389 + 3789.87 + 3421.392 + 3038.935 = $14,009 Mil.
Gross Profit was 573.111 + 561.457 + 525.005 + 504.619 = $2,164 Mil.
Total Current Assets was $4,516 Mil.
Total Assets was $5,396 Mil.
Property, Plant and Equipment(Net PPE) was $84 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General, & Admin. Expense(SGA) was $1,815 Mil.
Total Current Liabilities was $2,945 Mil.
Long-Term Debt & Capital Lease Obligation was $500 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) |
| = | (1678.927 / 16243.587) | / | (1527.391 / 14008.586) |
| = | 0.103359 | / | 0.109032 |
| | = | 0.948 |
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) |
| = | (2164.192 / 14008.586) | / | (2598.71 / 16243.587) |
| = | 0.15449 | / | 0.159984 |
| | = | 0.9657 |
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 - (5324.043 + 146.053) / 6397.646) | / | (1 - (4515.617 + 84.328) / 5395.934) |
| = | 0.144983 | / | 0.147516 |
| | = | 0.9828 |
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 |
| = | 16243.587 | / | 14008.586 |
| | = | 1.1595 |
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)) |
| = | (29.786 / (29.786 + 84.328)) | / | (22.533 / (22.533 + 146.053)) |
| = | 0.26102 | / | 0.133659 |
| | = | 1.9529 |
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) |
| = | (2086.34 / 16243.587) | / | (1814.702 / 14008.586) |
| = | 0.128441 | / | 0.129542 |
| | = | 0.9915 |
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) |
| = | ((399.709 + 3871.91) / 6397.646) | / | ((499.504 + 2944.503) / 5395.934) |
| = | 0.667686 | / | 0.63826 |
| | = | 1.0461 |
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 |
| = | (185.677 - 11.357 | - | 431.095) | / | 6397.646 |
| | = | -0.040136 |
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.
Health Net has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
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