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SGRY (Surgery Partners) Beneish M-Score : -2.55 (As of Oct. 31, 2024)


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What is Surgery Partners 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SGRY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73   Med: -2.47   Max: -0.31
Current: -2.55

During the past 12 years, the highest Beneish M-Score of Surgery Partners was -0.31. The lowest was -2.73. And the median was -2.47.


Surgery Partners Beneish M-Score Historical Data

The historical data trend for Surgery Partners'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.

Surgery Partners Beneish M-Score Chart

Surgery Partners Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.56 -2.60 -2.45 -2.48 -2.59

Surgery Partners Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -2.44 -2.55 -2.59 -2.58 -2.55

Competitive Comparison of Surgery Partners's Beneish M-Score

For the Medical Care Facilities subindustry, Surgery Partners'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.


Surgery Partners's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Surgery Partners's Beneish M-Score distribution charts can be found below:

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



Surgery Partners 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 Surgery Partners 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 * 1.0718+0.528 * 0.9442+0.404 * 0.9752+0.892 * 1.0855+0.115 * 1.0583
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1008+4.679 * -0.031247-0.327 * 1.0544
=-2.55

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $523 Mil.
Revenue was 762.1 + 717.4 + 735.4 + 674.1 = $2,889 Mil.
Gross Profit was 179.2 + 155.3 + 193.6 + 165.8 = $694 Mil.
Total Current Assets was $1,013 Mil.
Total Assets was $7,489 Mil.
Property, Plant and Equipment(Net PPE) was $1,273 Mil.
Depreciation, Depletion and Amortization(DDA) was $129 Mil.
Selling, General, & Admin. Expense(SGA) was $131 Mil.
Total Current Liabilities was $552 Mil.
Long-Term Debt & Capital Lease Obligation was $3,297 Mil.
Net Income was -15.5 + -12.4 + -1 + -4.9 = $-34 Mil.
Non Operating Income was -19.3 + -14.4 + -38.1 + -18.7 = $-91 Mil.
Cash Flow from Operations was 82.8 + 40.7 + 62.6 + 104.6 = $291 Mil.
Total Receivables was $450 Mil.
Revenue was 667.6 + 666.2 + 707.1 + 620.6 = $2,662 Mil.
Gross Profit was 154.1 + 134 + 184.3 + 131.2 = $604 Mil.
Total Current Assets was $810 Mil.
Total Assets was $6,621 Mil.
Property, Plant and Equipment(Net PPE) was $1,093 Mil.
Depreciation, Depletion and Amortization(DDA) was $118 Mil.
Selling, General, & Admin. Expense(SGA) was $110 Mil.
Total Current Liabilities was $459 Mil.
Long-Term Debt & Capital Lease Obligation was $2,769 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)
=(523.4 / 2889) / (449.9 / 2661.5)
=0.18117 / 0.16904
=1.0718

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)
=(603.6 / 2661.5) / (693.9 / 2889)
=0.226789 / 0.240187
=0.9442

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 - (1012.5 + 1272.7) / 7488.6) / (1 - (810.2 + 1093.2) / 6620.6)
=0.694843 / 0.712503
=0.9752

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
=2889 / 2661.5
=1.0855

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))
=(117.5 / (117.5 + 1093.2)) / (128.5 / (128.5 + 1272.7))
=0.097051 / 0.091707
=1.0583

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)
=(131.2 / 2889) / (109.8 / 2661.5)
=0.045414 / 0.041255
=1.1008

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)
=((3297.3 + 551.8) / 7488.6) / ((2768.9 + 458.6) / 6620.6)
=0.513995 / 0.487494
=1.0544

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
=(-33.8 - -90.5 - 290.7) / 7488.6
=-0.031247

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.

Surgery Partners has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.


Surgery Partners Beneish M-Score Related Terms

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Surgery Partners Business Description

Traded in Other Exchanges
Address
340 Seven Springs Way, Suite 600, Brentwood, TN, USA, 37027
Surgery Partners Inc is a healthcare services company with an integrated outpatient delivery model focused on providing quality, cost-effective solutions for surgical and related ancillary care in support of both patients and physicians. It operates in two segments: Surgical Facility Services and Ancillary Services out of which the Surgical Facility Services segment accounts for the majority of revenue.
Executives
Harrison R. Bane officer: American Group President 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
Danielle Burkhalter officer: Chief Human Resources Officer 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
Bradley R. Owens officer: National Group President 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
David T Doherty officer: Chief Financial Officer 310 SEVEN SPRINGS WAY, BRENTWOOD TN 37027
Jason Eric Evans officer: EVP & Chief Operating Officer 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
Anthony Taparo officer: President, Atlantic Group 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
Jennifer Baldock officer: Sr. VP, Gen Couns. & Sec. 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
Marissa Brittenham officer: Chief Strategy Officer 310 SEVEN SPRINGS WAY, BRENTWOOD TN 37027
Bain Capital Investors Llc director, 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
T. Devin O'reilly director, 10 percent owner C/O BAIN CAPITAL PRIVATE EQUITY, LP, 200 CLARENDON STREET, BOSTON MA 02149
Blair E Hendrix director, 10 percent owner
Andrew T. Kaplan director C/O BAIN CAPITAL PRIVATE EQUITY, LP, 200 CLARENDON STREET, BOSTON MA 02116
Wayne S Deveydt director, officer: Chief Executive Officer 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Bain Capital Partners Xi, L.p. director, 10 percent owner 200 CLARENDON STREET, BOSTON MA 02116
Bain Capital Fund Xi, L.p. director, 10 percent owner JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116