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GuruFocus has detected 5 Warning Signs with Synaptics Inc $SYNA.
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Synaptics Inc (NAS:SYNA)
Beneish M-Score
-3.39 (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.

Synaptics Inc has a M-score of -3.39 suggests that the company is not a manipulator.

SYNA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57   Max: -0.9
Current: -3.39

-3.57
-0.9

During the past 13 years, the highest Beneish M-Score of Synaptics Inc was -0.90. The lowest was -3.57. And the median was -2.40.


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 Synaptics 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 * 0.869+0.528 * 1.1253+0.404 * 0.9632+0.892 * 0.8868+0.115 * 1.0509
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9745+4.679 * -0.1544-0.327 * 1.0974
=-3.39

* 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 $247 Mil.
Revenue was 444.2 + 461.3 + 386.2 + 323.9 = $1,616 Mil.
Gross Profit was 134.7 + 138.7 + 123.4 + 108.1 = $505 Mil.
Total Current Assets was $794 Mil.
Total Assets was $1,269 Mil.
Property, Plant and Equipment(Net PPE) was $113 Mil.
Depreciation, Depletion and Amortization(DDA) was $95 Mil.
Selling, General & Admin. Expense(SGA) was $142 Mil.
Total Current Liabilities was $349 Mil.
Long-Term Debt was $206 Mil.
Net Income was 4.5 + 22.8 + 3.7 + -7.1 = $24 Mil.
Non Operating Income was 0 + 0 + 0 + 2.1 = $2 Mil.
Cash Flow from Operations was 52.1 + 52.4 + 0 + 113.2 = $218 Mil.
Accounts Receivable was $320 Mil.
Revenue was 402.5 + 470.5 + 470 + 478.9 = $1,822 Mil.
Gross Profit was 144.4 + 165.2 + 163.8 + 167.3 = $641 Mil.
Total Current Assets was $907 Mil.
Total Assets was $1,450 Mil.
Property, Plant and Equipment(Net PPE) was $114 Mil.
Depreciation, Depletion and Amortization(DDA) was $105 Mil.
Selling, General & Admin. Expense(SGA) was $164 Mil.
Total Current Liabilities was $357 Mil.
Long-Term Debt was $220 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)
=(246.6 / 1615.6) / (320 / 1821.9)
=0.15263679 / 0.17564081
=0.869

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)
=(640.7 / 1821.9) / (504.9 / 1615.6)
=0.35166584 / 0.31251547
=1.1253

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 - (794.4 + 113.2) / 1268.7) / (1 - (907.3 + 113.9) / 1449.5)
=0.28462205 / 0.2954812
=0.9632

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
=1615.6 / 1821.9
=0.8868

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))
=(105.4 / (105.4 + 113.9)) / (95.4 / (95.4 + 113.2))
=0.48062016 / 0.45733461
=1.0509

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)
=(141.9 / 1615.6) / (164.2 / 1821.9)
=0.08783115 / 0.09012569
=0.9745

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)
=((206.2 + 348.5) / 1268.7) / ((220.2 + 357.3) / 1449.5)
=0.4372192 / 0.39841325
=1.0974

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
=(23.9 - 2.1 - 217.7) / 1268.7
=-0.1544

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.

Synaptics Inc has a M-score of -3.39 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.

Synaptics Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 1.15290.90360.9321.10110.7951.2121.17770.92040.92570.795
GMI 1.13120.97171.00930.99820.98590.88190.94951.06671.35450.9741
AQI 0.62013.3381.04690.88090.93311.06340.80991.83311.63620.9918
SGI 1.44561.35341.31091.08791.16250.91591.21041.42781.79740.9788
DEPI 0.95340.82620.86090.79320.8421.01341.87880.74380.44250.9922
SGAI 0.89490.98110.85621.02160.98241.11560.93880.87990.71161.2916
LVGI 0.89751.31130.62680.72720.79810.95621.1031.13451.78910.9784
TATA 0.0006-0.1208-0.0617-0.1461-0.0569-0.0874-0.0046-0.0832-0.0618-0.1434
M-score -1.98-2.01-2.40-2.98-2.77-2.81-2.18-2.24-1.95-3.42

Synaptics Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.63551.1970.92570.95690.67110.84580.7950.81910.92880.869
GMI 1.2851.3311.35451.3481.08771.01860.97410.96311.06511.1253
AQI 1.61821.65741.63621.8260.84410.86960.99180.98080.95830.9632
SGI 1.53991.78361.79741.87581.49891.18390.97880.83750.82970.8868
DEPI 0.47330.40790.44250.40990.79450.91560.99221.08991.0421.0509
SGAI 0.82440.72860.71160.66850.95971.16871.29161.35651.13590.9745
LVGI 2.30861.9611.78911.85891.01720.95230.97840.90330.96651.0974
TATA -0.0321-0.0658-0.0618-0.0349-0.0998-0.0446-0.1434-0.1565-0.1262-0.1544
M-score -1.62-1.80-1.95-1.68-2.84-2.73-3.42-3.57-3.28-3.39
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