Sphere Medical Holding (LSE:SPHR) Beneish M-Score : 2.33 (As of Jun. 02, 2024)

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What is Sphere Medical Holding 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.

Warning Sign:

Beneish M-Score 2.33 higher than -2.22, which implies that it might have manipulated its financial results.

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

LSE:SPHR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67 Med: 0.59 Max: 8.32
Current: 2.33

During the past 9 years, the highest Beneish M-Score of Sphere Medical Holding was 8.32. The lowest was -3.67. And the median was 0.59.

Sphere Medical Holding Beneish M-Score Historical Data

The historical data trend for Sphere Medical Holding'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.

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Sphere Medical Holding Beneish M-Score Chart

Sphere Medical Holding Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Beneish M-Score

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2.49

-3.67

-2.02

8.32

2.33

Sphere Medical Holding Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Beneish M-Score	Get a 7-Day Free Trial						-2.02	-	8.32	-	2.33

Competitive Comparison of Sphere Medical Holding's Beneish M-Score

For the Medical Devices subindustry, Sphere Medical Holding'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.

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

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

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

Sphere Medical Holding 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 Sphere Medical Holding 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 * 0.7126

0.528 * 2.6

0.404 * 5.4127

0.892 * 2

0.115 * 1.1917

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4779

4.679 * 0.001148

0.327 * 1.3555

0.78

This Year (Dec16) TTM:

Last Year (Dec15) TTM:

Total Receivables was £0.18 Mil.
Revenue was £0.03 Mil.
Gross Profit was £0.01 Mil.
Total Current Assets was £3.85 Mil.
Total Assets was £6.97 Mil.
Property, Plant and Equipment(Net PPE) was £0.19 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.15 Mil.
Selling, General, & Admin. Expense(SGA) was £3.03 Mil.
Total Current Liabilities was £0.76 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 Mil.
Net Income was £-4.51 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-4.52 Mil.

Total Receivables was £0.13 Mil.
Revenue was £0.02 Mil.
Gross Profit was £0.01 Mil.
Total Current Assets was £10.54 Mil.
Total Assets was £11.54 Mil.
Property, Plant and Equipment(Net PPE) was £0.10 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.11 Mil.
Selling, General, & Admin. Expense(SGA) was £3.17 Mil.
Total Current Liabilities was £0.93 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 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)
	=	(0.181 / 0.03)	/	(0.127 / 0.015)
	=	6.033333	/	8.466667
	=	0.7126

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)
	=	(0.013 / 0.015)	/	(0.01 / 0.03)
	=	0.866667	/	0.333333
	=	2.6

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 - (3.849 + 0.189) / 6.966)	/	(1 - (10.539 + 0.103) / 11.538)
	=	0.420327	/	0.077656
	=	5.4127

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
	=	0.03	/	0.015
	=	2

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))
	=	(0.114 / (0.114 + 0.103))	/	(0.149 / (0.149 + 0.189))
	=	0.525346	/	0.440828
	=	1.1917

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)
	=	(3.032 / 0.03)	/	(3.172 / 0.015)
	=	101.066667	/	211.466667
	=	0.4779

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 + 0.757) / 6.966)	/	((0 + 0.925) / 11.538)
	=	0.108671	/	0.08017
	=	1.3555

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
	=	(-4.513 - 0	-	-4.521)	/	6.966
	=	0.001148

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.

Sphere Medical Holding has a M-score of 0.78 signals that the company is likely to be a manipulator.

Sphere Medical Holding Beneish M-Score Related Terms

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Sphere Medical Holding (LSE:SPHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sphere Medical Holding PLC (LSE:SPHR) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Harston Mill, Harston, Cambridge, GBR, CB22 7GG

Website

http://www.spheremedical.com

Sphere Medical Holding Ltd is a UK-based company which is engaged in research and development, manufacturing and sale of medical monitoring and diagnostic equipment within the medical device area. It focuses on developing the Proxima platform for measuring blood gases, electrolytes and metabolites. Proxima is an in-line patient dedicated arterial blood analyser which supports frequent measurements at critical times. It markets its product (Proxima) to critical care market which includes ICU (Intensive Care Unit) and OR (Operating Room). The company's products are used in medical applications, enabling faster clinical decision-making and improved patient outcomes. It operates is business in single reporting segment of Medical devices. Most of the company's revenue comes from Europe.