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Paragon 28 (Paragon 28) Beneish M-Score

: -2.26 (As of Today)
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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.

Good Sign:

Beneish M-Score -2.26 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Paragon 28's Beneish M-Score or its related term are showing as below:

FNA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.26   Med: -2.14   Max: -2.02
Current: -2.26

During the past 5 years, the highest Beneish M-Score of Paragon 28 was -2.02. The lowest was -2.26. And the median was -2.14.


Paragon 28 Beneish M-Score Historical Data

The historical data trend for Paragon 28'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.

Paragon 28 Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - -2.02 -2.26

Paragon 28 Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.02 -2.07 -2.13 -2.18 -2.26

Competitive Comparison

For the Medical Devices subindustry, Paragon 28'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.


Paragon 28 Beneish M-Score Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Paragon 28's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Paragon 28's Beneish M-Score falls into.



Paragon 28 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 Paragon 28 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 * 0.8342+0.528 * 1.0282+0.404 * 0.7603+0.892 * 1.193+0.115 * 1.0467
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9471+4.679 * 0.062234-0.327 * 1.0852
=-2.26

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $38.1 Mil.
Revenue was 60.561 + 52.783 + 51.009 + 52.036 = $216.4 Mil.
Gross Profit was 45.121 + 42.389 + 42.151 + 43.13 = $172.8 Mil.
Total Current Assets was $215.8 Mil.
Total Assets was $340.7 Mil.
Property, Plant and Equipment(Net PPE) was $74.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.5 Mil.
Selling, General, & Admin. Expense(SGA) was $180.0 Mil.
Total Current Liabilities was $51.2 Mil.
Long-Term Debt & Capital Lease Obligation was $109.8 Mil.
Net Income was -19.559 + -8.332 + -10.898 + -9.052 = $-47.8 Mil.
Non Operating Income was -6.168 + 1.66 + -0.467 + -0.179 = $-5.2 Mil.
Cash Flow from Operations was -16.373 + -14.114 + -19.343 + -14.06 = $-63.9 Mil.
Total Receivables was $38.3 Mil.
Revenue was 51.508 + 46.006 + 42.498 + 41.371 = $181.4 Mil.
Gross Profit was 41.971 + 37.515 + 34.86 + 34.58 = $148.9 Mil.
Total Current Assets was $142.4 Mil.
Total Assets was $254.1 Mil.
Property, Plant and Equipment(Net PPE) was $61.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.7 Mil.
Selling, General, & Admin. Expense(SGA) was $159.3 Mil.
Total Current Liabilities was $68.5 Mil.
Long-Term Debt & Capital Lease Obligation was $42.2 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)
=(38.117 / 216.389) / (38.302 / 181.383)
=0.17615 / 0.211166
=0.8342

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)
=(148.926 / 181.383) / (172.791 / 216.389)
=0.821058 / 0.79852
=1.0282

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 - (215.815 + 74.122) / 340.699) / (1 - (142.376 + 61.938) / 254.109)
=0.148994 / 0.195959
=0.7603

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
=216.389 / 181.383
=1.193

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))
=(13.728 / (13.728 + 61.938)) / (15.542 / (15.542 + 74.122))
=0.181429 / 0.173336
=1.0467

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)
=(180.022 / 216.389) / (159.323 / 181.383)
=0.831937 / 0.878379
=0.9471

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)
=((109.799 + 51.243) / 340.699) / ((42.182 + 68.502) / 254.109)
=0.472681 / 0.435577
=1.0852

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
=(-47.841 - -5.154 - -63.89) / 340.699
=0.062234

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.

Paragon 28 has a M-score of -2.26 suggests that the company is unlikely to be a manipulator.


Paragon 28 Beneish M-Score Related Terms

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Paragon 28 (Paragon 28) Business Description

Traded in Other Exchanges
Address
14445 Grasslands Drive, Englewood, CO, USA, 80112
Paragon 28 Inc is a medical devices company that develops, distributes, and sells medical devices in the foot and ankle segment of the orthopedic implant marketplace. Its products include plates and plating systems, screws, staples, and nails aimed to address all major foot and ankle procedures including ankle, charcot, fracture fixation, hallux valgus, hammertoe, and flatfoot.
Executives
Albert Dacosta director, officer: See Remarks C/O PARAGON 28, INC., 14445 GRASSLANDS DRIVE, ENGLEWOOD CO 80112
Robert S Mccormack officer: See Remarks C/O VIEWRAY, INC., 2 THERMO FISHER WAY, OAKWOOD VILLAGE OH 44146
Thomas P Schnettler director 800 NICOLLET MALL, J1012057, MINNEAPOLIS MN 55402-7020
Kristina Wright director C/O PARAGON 28, INC., 14445 GRASSLANDS DRIVE, ENGLEWOOD CO 80112
B. Ag Bird 10 percent owner BAHNHOFSTRASSE 7, ZUG V8 CH-6300
Mvm Partners, Llc 10 percent owner OLD CITY HALL, 45 SCHOOL STREET, BOSTON MA 02108
Matthew Jarboe officer: Chief Commercial Officer C/O PARAGON 28, INC., 14445 GRASSLANDS DRIVE, ENGLEWOOD CO 80112
Partners Llp Mvm 10 percent owner 30 ST. GEORGE STREET, LONDON X0 W1S SFH
Jonathan I Friedman officer: General Counsel DENTSPLY SIRONA INC., 30-30 47TH AVENUE, SUITE 500, LONG ISLAND CITY NY 11101
Lee Rosenthal 10 percent owner C/O PARAGON 28, INC., 14445 GRASSLANDS DRIVE, ENGLEWOOD CO 80112
Quentin S. Blackford director 7475 LUSK BLVD., SAN DIEGO CA 92121
Frank S. Bono officer: Chief Technology Officer 5677 AIRLINE ROAD, ARLINGTON TN 38002
Jason Allan Edie officer: Chief Technology Officer C/O PARAGON 28, INC., 14445 GRASSLANDS DRIVE, ENGLEWOOD CO 80112
Erik E Mickelson officer: Chief Accounting Officer C/O PARAGON 28, INC., 14445 GRASSLANDS DRIVE, ENGLEWOOD CO 80112
Meghan Scanlon director C/O BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752