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GuruFocus has detected 2 Warning Signs with Bioanalytical Systems Inc $BASI.
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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-4.07 (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.

Bioanalytical Systems Inc has a M-score of -4.07 suggests that the company is not a manipulator.

BASI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Max: -1.43
Current: -4.07

-4.07
-1.43

During the past 13 years, the highest Beneish M-Score of Bioanalytical Systems Inc was -1.43. The lowest was -4.07. And the median was -2.67.


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 Bioanalytical Systems 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 * 0.6305+0.528 * 1.5241+0.404 * 0.1234+0.892 * 0.9006+0.115 * 0.9376
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1356+4.679 * -0.2122-0.327 * 1.1822
=-4.07

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1.65 Mil.
Revenue was 5.154 + 5.053 + 5.339 + 4.895 = $20.44 Mil.
Gross Profit was 0.952 + 1.173 + 1.316 + 0.984 = $4.43 Mil.
Total Current Assets was $4.88 Mil.
Total Assets was $21.14 Mil.
Property, Plant and Equipment(Net PPE) was $16.14 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.56 Mil.
Selling, General & Admin. Expense(SGA) was $6.00 Mil.
Total Current Liabilities was $13.48 Mil.
Long-Term Debt was $0.20 Mil.
Net Income was -2.037 + -0.433 + -0.254 + -0.506 = $-3.23 Mil.
Non Operating Income was 0.004 + 0.022 + 0.079 + 0.09 = $0.20 Mil.
Cash Flow from Operations was 0.79 + 0.144 + 0.474 + -0.348 = $1.06 Mil.
Accounts Receivable was $2.90 Mil.
Revenue was 4.977 + 6.15 + 5.726 + 5.845 = $22.70 Mil.
Gross Profit was 1.293 + 2.49 + 1.802 + 1.904 = $7.49 Mil.
Total Current Assets was $6.68 Mil.
Total Assets was $23.82 Mil.
Property, Plant and Equipment(Net PPE) was $15.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.44 Mil.
Selling, General & Admin. Expense(SGA) was $5.87 Mil.
Total Current Liabilities was $9.30 Mil.
Long-Term Debt was $3.73 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)
=(1.649 / 20.441) / (2.904 / 22.698)
=0.0806712 / 0.12794079
=0.6305

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)
=(7.489 / 22.698) / (4.425 / 20.441)
=0.32994096 / 0.21647669
=1.5241

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 - (4.877 + 16.136) / 21.139) / (1 - (6.676 + 15.989) / 23.815)
=0.00596055 / 0.04828889
=0.1234

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
=20.441 / 22.698
=0.9006

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))
=(1.437 / (1.437 + 15.989)) / (1.556 / (1.556 + 16.136))
=0.08246299 / 0.08794936
=0.9376

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)
=(5.998 / 20.441) / (5.865 / 22.698)
=0.29342987 / 0.25839281
=1.1356

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)
=((0.198 + 13.483) / 21.139) / ((3.734 + 9.303) / 23.815)
=0.64719239 / 0.54742809
=1.1822

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
=(-3.23 - 0.195 - 1.06) / 21.139
=-0.2122

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.

Bioanalytical Systems Inc has a M-score of -4.07 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.

Bioanalytical Systems Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 1.09371.09910.79630.71350.96370.9711.37510.63391.23010.6305
GMI 1.04480.8291.53710.9390.80381.30760.75830.98710.98161.5241
AQI 0.91140.90540.94991.05150.86671.10851.05090.86820.98120.1234
SGI 1.0510.92160.76230.90551.15160.85110.78231.1140.92330.9006
DEPI 1.00061.13741.04241.03561.12710.86911.17861.01581.10370.9376
SGAI 0.67381.22091.22650.88430.85861.18880.83951.0260.96311.1356
LVGI 0.95520.99971.08531.07370.86991.23580.91440.94850.91541.1822
TATA -0.0477-0.0519-0.2471-0.1726-0.0172-0.2299-0.0558-0.0776-0.0629-0.2122
M-score -2.51-2.85-3.83-3.65-2.53-3.63-2.62-3.12-2.60-4.07

Bioanalytical Systems Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.96070.63391.10011.07141.15741.23010.6240.97650.92180.6305
GMI 0.92920.9871.02411.11451.0240.98161.05591.09791.4121.5241
AQI 1.02610.86820.79580.82790.78370.98121.05780.96930.96410.1234
SGI 1.02481.11411.07671.03371.01980.92330.89830.88920.83940.9006
DEPI 1.07771.01580.99611.0031.0441.10371.11721.12861.08060.9376
SGAI 1.10231.02591.05340.98090.86550.96310.9490.94091.26121.1356
LVGI 0.97340.94850.92650.93550.84510.91540.90661.01091.17291.1822
TATA -0.0412-0.0776-0.0373-0.0671-0.033-0.0629-0.0903-0.0922-0.146-0.2122
M-score -2.71-3.12-2.55-2.68-2.47-2.60-3.23-2.97-3.27-4.07
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