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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

BASI' s 10-Year Beneish M-Score Range
Min: -3.99   Max: -1.43
Current: -2.68

-3.99
-1.43

During the past 13 years, the highest Beneish M-Score of Bioanalytical Systems Inc was -1.43. The lowest was -3.99. And the median was -2.72.


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 * 1.0714+0.528 * 1.1145+0.404 * 0.8279+0.892 * 1.0337+0.115 * 1.003
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9809+4.679 * -0.0671-0.327 * 0.9355
=-2.68

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $3.03 Mil.
Revenue was 5.726 + 5.845 + 6.42 + 6.032 = $24.02 Mil.
Gross Profit was 1.802 + 1.904 + 1.821 + 1.984 = $7.51 Mil.
Total Current Assets was $6.40 Mil.
Total Assets was $23.01 Mil.
Property, Plant and Equipment(Net PPE) was $15.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.53 Mil.
Selling, General & Admin. Expense(SGA) was $6.53 Mil.
Total Current Liabilities was $8.75 Mil.
Long-Term Debt was $4.23 Mil.
Net Income was 0.15 + 0.182 + -0.404 + 0.215 = $0.14 Mil.
Non Operating Income was 0.198 + 0.122 + 0.18 + 0.067 = $0.57 Mil.
Cash Flow from Operations was 0.601 + -0.161 + 0.469 + 0.21 = $1.12 Mil.
Accounts Receivable was $2.74 Mil.
Revenue was 5.912 + 6.22 + 5.508 + 5.6 = $23.24 Mil.
Gross Profit was 2.012 + 2.145 + 1.909 + 2.032 = $8.10 Mil.
Total Current Assets was $6.52 Mil.
Total Assets was $24.25 Mil.
Property, Plant and Equipment(Net PPE) was $16.27 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.61 Mil.
Selling, General & Admin. Expense(SGA) was $6.44 Mil.
Total Current Liabilities was $14.29 Mil.
Long-Term Debt was $0.33 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)
=(3.029 / 24.023) / (2.735 / 23.24)
=0.1260875 / 0.11768503
=1.0714

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)
=(1.904 / 23.24) / (1.802 / 24.023)
=0.34845095 / 0.3126587
=1.1145

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 - (6.404 + 15.451) / 23.008) / (1 - (6.517 + 16.267) / 24.252)
=0.050113 / 0.06053109
=0.8279

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
=24.023 / 23.24
=1.0337

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))
=(1.614 / (1.614 + 16.267)) / (1.528 / (1.528 + 15.451))
=0.09026341 / 0.08999352
=1.003

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)
=(6.526 / 24.023) / (6.436 / 23.24)
=0.27165633 / 0.27693632
=0.9809

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)
=((4.226 + 8.752) / 23.008) / ((0.331 + 14.292) / 24.252)
=0.56406467 / 0.60296058
=0.9355

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
=(0.143 - 0.567 - 1.119) / 23.008
=-0.0671

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 -2.68 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 own currency.

Bioanalytical Systems Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 2.13340.60751.09371.09910.79630.71350.96370.9711.37510.6339
GMI 0.85581.13911.04480.8291.53710.9390.80381.30760.75830.9871
AQI 0.89180.78760.91140.90540.94991.05150.86671.10851.05090.8682
SGI 1.14111.01541.0510.92160.76230.90551.15160.85110.78231.114
DEPI 0.8490.87451.00061.13741.04241.03561.12710.86911.17861.0158
SGAI 1.10011.13490.67381.22091.22650.88430.85861.18880.83951.026
LVGI 1.03991.03710.95520.99971.08531.07370.86991.23580.91440.9485
TATA 0.0092-0.1289-0.0455-0.0513-0.2471-0.1726-0.0172-0.2299-0.0558-0.0776
M-score -1.44-3.49-2.50-2.85-3.83-3.65-2.53-3.63-2.62-3.12

Bioanalytical Systems Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.7340.92120.97631.37511.41031.19260.96070.63391.10011.0714
GMI 1.0460.8250.73560.75830.83320.85170.92920.9871.02411.1145
AQI 1.18851.14651.15071.05091.06651.00511.02610.86820.79580.8279
SGI 0.81350.79340.77460.78230.84860.94151.02481.11411.07671.0337
DEPI 0.8710.95791.05281.17861.19111.14331.07771.01580.99611.003
SGAI 1.01930.79280.78220.83950.90021.10781.10231.02591.05340.9809
LVGI 1.17871.12471.04610.91440.97240.92060.97340.94850.92650.9355
TATA -0.187-0.1503-0.155-0.0558-0.0664-0.0668-0.0412-0.0776-0.0373-0.0671
M-score -3.74-3.48-3.48-2.62-2.56-2.72-2.71-3.12-2.55-2.68
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