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GuruFocus has detected 7 Warning Signs with Omnicell Inc $OMCL.
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Omnicell Inc (NAS:OMCL)
Beneish M-Score
-2.80 (As of Today)

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

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Omnicell Inc has a M-score of -2.80 suggests that the company is not a manipulator.

OMCL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83   Max: -1.37
Current: -2.8

-3.83
-1.37

During the past 13 years, the highest Beneish M-Score of Omnicell Inc was -1.37. The lowest was -3.83. And the median was -2.28.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Omnicell Inc 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 * 0.6884+0.528 * 1.1131+0.404 * 1.021+0.892 * 1.2463+0.115 * 0.7758
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0634+4.679 * -0.0633-0.327 * 0.9788
=-2.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $131.4 Mil.
Revenue was 150.554 + 171.975 + 176.737 + 172.907 = $672.2 Mil.
Gross Profit was 64.192 + 74.33 + 81.508 + 78.017 = $298.0 Mil.
Total Current Assets was $294.4 Mil.
Total Assets was $909.8 Mil.
Property, Plant and Equipment(Net PPE) was $41.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $56.3 Mil.
Selling, General & Admin. Expense(SGA) was $249.9 Mil.
Total Current Liabilities was $197.5 Mil.
Long-Term Debt was $206.1 Mil.
Net Income was -10.754 + 0.157 + 1.983 + -1.159 = $-9.8 Mil.
Non Operating Income was 0 + -1.656 + -2.721 + -1.881 = $-6.3 Mil.
Cash Flow from Operations was 28.182 + 23.467 + 8.517 + -6.054 = $54.1 Mil.
Accounts Receivable was $153.2 Mil.
Revenue was 171.004 + 130.316 + 125.234 + 112.788 = $539.3 Mil.
Gross Profit was 79.945 + 65.08 + 63.703 + 57.462 = $266.2 Mil.
Total Current Assets was $310.3 Mil.
Total Assets was $923.8 Mil.
Property, Plant and Equipment(Net PPE) was $42.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $34.4 Mil.
Selling, General & Admin. Expense(SGA) was $188.5 Mil.
Total Current Liabilities was $199.6 Mil.
Long-Term Debt was $219.0 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(131.433 / 672.173) / (153.199 / 539.342)
=0.19553448 / 0.28404797
=0.6884

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)
=(266.19 / 539.342) / (298.047 / 672.173)
=0.49354584 / 0.44340817
=1.1131

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (294.379 + 40.996) / 909.763) / (1 - (310.308 + 42.208) / 923.772)
=0.63136004 / 0.61839502
=1.021

4. SGI = Sales Growth Index

Ratio of sales 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
=672.173 / 539.342
=1.2463

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(34.401 / (34.401 + 42.208)) / (56.337 / (56.337 + 40.996))
=0.44904646 / 0.57880678
=0.7758

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(249.89 / 672.173) / (188.549 / 539.342)
=0.37176441 / 0.3495908
=1.0634

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((206.128 + 197.48) / 909.763) / ((219.046 + 199.646) / 923.772)
=0.44364082 / 0.45324171
=0.9788

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
=(-9.773 - -6.258 - 54.112) / 909.763
=-0.0633

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Omnicell Inc has a M-score of -2.80 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Omnicell Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.80081.30720.83091.00460.81951.11470.87721.21921.18690.974
GMI 1.03951.04121.03610.92970.95871.0181.01641.00761.03671.1293
AQI 1.44071.08570.82861.03460.92432.9690.88330.94671.13551.2665
SGI 1.37731.1820.84751.04191.1041.2791.21191.15851.0991.4294
DEPI 1.33540.87370.85541.111.18871.12370.82020.95380.81170.7609
SGAI 0.89340.98411.08580.9661.02440.960.95780.97180.97451.0417
LVGI 0.50831.05590.97740.93270.98331.12840.99781.06871.0742.1187
TATA 0.0063-0.0075-0.1429-0.046-0.0564-0.0528-0.0635-0.0618-0.0011-0.0439
M-score -1.88-2.04-3.51-2.64-2.85-1.59-2.75-2.47-2.19-2.55

Omnicell Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.21921.0131.24761.08611.18691.4681.05011.11840.9740.6884
GMI 1.00761.01581.02961.02881.03671.07261.09461.1081.12931.1131
AQI 0.94670.95711.12061.11251.13551.46971.3141.21141.26651.021
SGI 1.15851.15211.13891.11921.0991.18441.29451.36821.42941.2463
DEPI 0.95380.89910.83690.81940.81170.85380.77150.74630.76090.7758
SGAI 0.97180.97140.97120.97220.97450.98671.00371.03031.04171.0634
LVGI 1.06871.05441.19661.04331.0742.38221.94272.08512.11870.9788
TATA -0.0618-0.0774-0.0288-0.0049-0.0011-0.02-0.0242-0.0417-0.0439-0.0633
M-score -2.47-2.73-2.28-2.29-2.19-2.22-2.44-2.48-2.55-2.80
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