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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-2.97 (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 -2.97 suggests that the company is not a manipulator.

BASI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.99   Max: -1.43
Current: -2.97

-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 * 0.9765+0.528 * 1.0979+0.404 * 0.9693+0.892 * 0.8892+0.115 * 1.1501
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9409+4.679 * -0.0922-0.327 * 1.0109
=-2.97

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2.63 Mil.
Revenue was 5.339 + 4.895 + 4.977 + 6.15 = $21.36 Mil.
Gross Profit was 1.316 + 0.984 + 1.293 + 2.49 = $6.08 Mil.
Total Current Assets was $5.98 Mil.
Total Assets was $23.04 Mil.
Property, Plant and Equipment(Net PPE) was $15.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.35 Mil.
Selling, General & Admin. Expense(SGA) was $5.46 Mil.
Total Current Liabilities was $13.08 Mil.
Long-Term Debt was $0.05 Mil.
Net Income was -0.254 + -0.506 + -0.711 + 1.478 = $0.01 Mil.
Non Operating Income was 0.079 + 0.09 + 0.138 + 0.034 = $0.34 Mil.
Cash Flow from Operations was 0.474 + -0.348 + 0.929 + 0.735 = $1.79 Mil.
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.



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)
=(2.63 / 21.361) / (3.029 / 24.023)
=0.12312158 / 0.1260875
=0.9765

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)
=(0.984 / 24.023) / (1.316 / 21.361)
=0.3126587 / 0.28477131
=1.0979

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 - (5.979 + 15.938) / 23.036) / (1 - (6.404 + 15.451) / 23.008)
=0.04857614 / 0.050113
=0.9693

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
=21.361 / 24.023
=0.8892

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))
=(1.528 / (1.528 + 15.451)) / (1.353 / (1.353 + 15.938))
=0.08999352 / 0.0782488
=1.1501

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)
=(5.46 / 21.361) / (6.526 / 24.023)
=0.25560601 / 0.27165633
=0.9409

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)
=((0.053 + 13.082) / 23.036) / ((4.226 + 8.752) / 23.008)
=0.57019448 / 0.56406467
=1.0109

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
=(0.007 - 0.341 - 1.79) / 23.036
=-0.0922

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 -2.97 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 0.60751.09371.09910.79630.71350.96370.9711.37510.63391.2301
GMI 1.12821.05240.8291.53710.9390.80381.30760.75830.98710.9816
AQI 0.78760.91140.90540.94991.05150.86671.10851.05090.86820.9684
SGI 1.01541.0510.92160.76230.90551.15160.85110.78231.1140.9233
DEPI 0.87451.00061.13741.04241.03561.12710.86911.17861.01581.1239
SGAI 1.13490.67381.22091.22650.88430.85861.18880.83951.0260.9631
LVGI 1.03710.95520.99971.08531.07370.86991.23580.91440.94850.9154
TATA -0.1526-0.0477-0.0519-0.2471-0.1726-0.0172-0.2299-0.0529-0.0776-0.0629
M-score -3.61-2.51-2.85-3.83-3.65-2.53-3.63-2.61-3.12-2.61

Bioanalytical Systems Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.41031.19260.96070.63391.10011.07141.15741.23010.6240.9765
GMI 0.83320.85170.92920.9871.02411.11451.0240.98161.05591.0979
AQI 1.06651.00511.02610.86820.79580.82790.78370.96841.05780.9693
SGI 0.84860.94151.02481.11411.07671.03371.01980.92330.89830.8892
DEPI 1.19111.14331.07771.01580.99611.0031.0441.12391.13811.1501
SGAI 0.90021.10781.10231.02591.05340.98090.86550.96310.9490.9409
LVGI 0.97240.92060.97340.94850.92650.93550.84510.91540.90661.0109
TATA -0.0658-0.0668-0.0412-0.0776-0.0373-0.0671-0.033-0.0629-0.0903-0.0922
M-score -2.56-2.72-2.71-3.12-2.55-2.68-2.47-2.61-3.23-2.97
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