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LIVN (LivaNova) Beneish M-Score : -2.46 (As of Oct. 31, 2024)


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What is LivaNova 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.

Good Sign:

Beneish M-Score -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LIVN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41   Med: -2.61   Max: 2.61
Current: -2.46

During the past 13 years, the highest Beneish M-Score of LivaNova was 2.61. The lowest was -3.41. And the median was -2.61.


LivaNova Beneish M-Score Historical Data

The historical data trend for LivaNova'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.

LivaNova Beneish M-Score Chart

LivaNova Annual Data
Trend Apr14 Apr15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.44 -2.79 -2.86 -2.74 -2.39

LivaNova Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.51 -2.39 -2.32 -2.46 -

Competitive Comparison of LivaNova's Beneish M-Score

For the Medical Devices subindustry, LivaNova'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.


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

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

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



LivaNova 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 LivaNova 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 * 0.9245+0.528 * 1.0086+0.404 * 0.9339+0.892 * 1.1104+0.115 * 1.2618
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9356+4.679 * -0.013837-0.327 * 1.011
=-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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $221 Mil.
Revenue was 318.1 + 318.6 + 294.9 + 310.132 = $1,242 Mil.
Gross Profit was 225.3 + 218.9 + 207.4 + 190.167 = $842 Mil.
Total Current Assets was $1,093 Mil.
Total Assets was $2,522 Mil.
Property, Plant and Equipment(Net PPE) was $221 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General, & Admin. Expense(SGA) was $524 Mil.
Total Current Liabilities was $324 Mil.
Long-Term Debt & Capital Lease Obligation was $648 Mil.
Net Income was 33 + 16.3 + -41.9 + 16.339 = $24 Mil.
Non Operating Income was 24.7 + -3 + -34.6 + -86.686 = $-100 Mil.
Cash Flow from Operations was 50.963 + 43.3 + 10 + 53.958 = $158 Mil.
Total Receivables was $215 Mil.
Revenue was 286.113 + 293.882 + 263.418 + 274.874 = $1,118 Mil.
Gross Profit was 201.803 + 205.197 + 174.083 + 183.517 = $765 Mil.
Total Current Assets was $954 Mil.
Total Assets was $2,329 Mil.
Property, Plant and Equipment(Net PPE) was $181 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General, & Admin. Expense(SGA) was $504 Mil.
Total Current Liabilities was $295 Mil.
Long-Term Debt & Capital Lease Obligation was $593 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)
=(221.1 / 1241.732) / (215.376 / 1118.287)
=0.178058 / 0.192595
=0.9245

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)
=(764.6 / 1118.287) / (841.767 / 1241.732)
=0.683724 / 0.677897
=1.0086

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 - (1093.1 + 220.9) / 2522) / (1 - (953.867 + 180.835) / 2329.417)
=0.478985 / 0.512882
=0.9339

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
=1241.732 / 1118.287
=1.1104

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))
=(60.114 / (60.114 + 180.835)) / (54.442 / (54.442 + 220.9))
=0.249488 / 0.197725
=1.2618

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)
=(524.034 / 1241.732) / (504.401 / 1118.287)
=0.422019 / 0.451048
=0.9356

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)
=((648.4 + 324.4) / 2522) / ((593.355 + 295.396) / 2329.417)
=0.385726 / 0.381534
=1.011

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
=(23.739 - -99.586 - 158.221) / 2522
=-0.013837

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.

LivaNova has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.


LivaNova Beneish M-Score Related Terms

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LivaNova Business Description

Traded in Other Exchanges
Address
20 Eastbourne Terrace, London, GBR, W2 6LG
UK-based LivaNova was born of a combination between Cyberonics in the US and Sorin in Italy. The medical-device firm is primarily focused on cardiopulmonary solutions (with heart-lung machines and oxygenation equipment) as well as neuromodulation devices for treatment-resistant epilepsy and depression. Following the merger, LivaNova divested its cardiac rhythm management and heart valve businesses. It derives roughly half of its revenue from the US market, another 21% from Europe, and the remainder from the rest of the world.
Executives
Francesco Bianchi director C/O LIVANOVA PLC, 5 MERCHANT SQUARE, LONDON X0 W2 1AY
Daniel Jeffrey Moore director 100 CYBERONICS BVLD, HOUSTON TX 77058
James Christopher Barry director 7475 LUSK BLVD, SAN DIEGO CA 92121
Damien Mcdonald officer: COO 5 MERCHANT SQUARE, NORTH WHARF ROAD, LONDON X0 W21AY
Michael Damon Hutchinson officer: Chief Legal Officer 2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Brooke Story director C/O SIGILON THERAPEUTICS, INC., 100 BINNEY STREET, SUITE 600, CAMBRIDGE MA 02142
Peter M Wilver director
Alfred J Novak director 325 NE 6TH ST, BOCA RATON FL 33432
William A Kozy director C/O BECTON DICKERSON & CO, 1 BECTON DR, FRANKLIN LAKES NJ 07417
Marco Dolci officer: SVP Global Operations, R&D VIA BENIGNO CRESPI 17, MILAN L6 20159
Todd C Schermerhorn director C/O C.R BARD INC, 730 CENTRAL AVE, MURRAY HILL NJ 07974
Alex Shvartsburg officer: Interim CFO 20 EASTBOURNE TERRACE, LONDON X0 W26LG
Roy Khoury officer: President, International 5 MERCHANT SQUARE, NORTH WHARF ROAD, LONDON X0 W21AY
Thad Allen Huston officer: Chief Financial Officer 941 BLOOMFIELD ST, HOBOKEN NJ 07030
Seng Stacy Enxing director C/O HILL-ROM HOLDINGS, INC., SUITE 4100 180 NORTH STETSON AVENUE, CHICAGO IL 60601