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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

BASI' s 10-Year Beneish M-Score Range
Min: -3.99   Max: -1.43
Current: -2.7

-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 -2.71.


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 * 0.9607+0.528 * 0.9292+0.404 * 1.0261+0.892 * 1.0248+0.115 * 1.0777
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1023+4.679 * -0.0382-0.327 * 0.9734
=-2.70

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2.73 Mil.
Revenue was 6.032 + 5.912 + 6.22 + 5.508 = $23.67 Mil.
Gross Profit was 1.984 + 2.012 + 2.145 + 1.909 = $8.05 Mil.
Total Current Assets was $7.12 Mil.
Total Assets was $24.86 Mil.
Property, Plant and Equipment(Net PPE) was $16.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.61 Mil.
Selling, General & Admin. Expense(SGA) was $6.53 Mil.
Total Current Liabilities was $9.97 Mil.
Long-Term Debt was $5.01 Mil.
Net Income was 0.215 + -0.219 + -0.662 + 0.252 = $-0.41 Mil.
Non Operating Income was 0.067 + -0.196 + -0.96 + 0.309 = $-0.78 Mil.
Cash Flow from Operations was 0.21 + -0.031 + 1.036 + 0.101 = $1.32 Mil.
Accounts Receivable was $2.78 Mil.
Revenue was 5.6 + 5.156 + 5.803 + 6.54 = $23.10 Mil.
Gross Profit was 2.032 + 1.258 + 1.855 + 2.154 = $7.30 Mil.
Total Current Assets was $5.37 Mil.
Total Assets was $24.18 Mil.
Property, Plant and Equipment(Net PPE) was $17.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.87 Mil.
Selling, General & Admin. Expense(SGA) was $5.78 Mil.
Total Current Liabilities was $14.42 Mil.
Long-Term Debt was $0.54 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)
=(2.734 / 23.672) / (2.777 / 23.099)
=0.1154951 / 0.12022165
=0.9607

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)
=(2.012 / 23.099) / (1.984 / 23.672)
=0.31598771 / 0.34006421
=0.9292

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 - (7.123 + 16.18) / 24.856) / (1 - (5.374 + 17.329) / 24.175)
=0.06247988 / 0.06088935
=1.0261

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
=23.672 / 23.099
=1.0248

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))
=(1.867 / (1.867 + 17.329)) / (1.605 / (1.605 + 16.18))
=0.09725985 / 0.09024459
=1.0777

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)
=(6.527 / 23.672) / (5.778 / 23.099)
=0.2757266 / 0.2501407
=1.1023

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)
=((5.012 + 9.965) / 24.856) / ((0.54 + 14.424) / 24.175)
=0.60255069 / 0.61898656
=0.9734

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
=(-0.414 - -0.78 - 1.316) / 24.856
=-0.0382

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 -2.70 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.86912.13340.60751.09371.09910.79630.71350.96370.9711.3751
GMI 1.12370.85581.13911.04480.8291.53710.9390.80381.30760.7583
AQI 0.9720.89180.78760.91140.90540.94991.05150.86671.10851.0509
SGI 1.24511.14111.01541.0510.92160.76230.90551.15160.85110.7823
DEPI 0.81370.8490.87451.00061.13741.04241.03561.12710.86911.1786
SGAI 0.98711.10011.13490.67381.22091.22650.88430.85861.18880.8395
LVGI 1.02621.03991.03710.95520.99971.08531.07370.86991.23580.9144
TATA -0.06650.0092-0.1289-0.0455-0.0513-0.2471-0.1726-0.0172-0.2299-0.0529
M-score -2.67-1.44-3.49-2.50-2.85-3.83-3.65-2.53-3.63-2.61

Bioanalytical Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.64971.07460.9710.7340.92120.97631.37511.41031.19260.9607
GMI 1.29811.35971.30761.0460.8250.73560.75830.83320.85170.9292
AQI 0.91961.12491.10851.18851.14651.15071.05091.06651.00511.0261
SGI 0.97280.92050.85110.81350.79340.77460.78230.84860.94151.0248
DEPI 1.04530.91460.86910.8710.95791.05281.17861.19111.14331.0777
SGAI 1.26251.27341.18881.01930.79280.78220.83950.90021.10781.1023
LVGI 0.96911.12431.23581.17871.12471.04610.91440.97240.92060.9734
TATA -0.0866-0.1287-0.2299-0.187-0.1503-0.155-0.0529-0.0633-0.0637-0.0382
M-score -3.14-2.94-3.63-3.74-3.48-3.48-2.61-2.55-2.71-2.70
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