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Bioanalytical Systems, Inc. (NAS:BASI)
Beneish M-Score
-2.58 (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 -2.58 suggests that the company is not a manipulator.

BASI' s 10-Year Beneish M-Score Range
Min: -4.05   Max: -1.56
Current: -2.58

-4.05
-1.56

During the past 13 years, the highest Beneish M-Score of Bioanalytical Systems, Inc. was -1.56. The lowest was -4.05. And the median was -2.77.


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 * 1.3706+0.528 * 0.8332+0.404 * 1.0665+0.892 * 0.8486+0.115 * 1.1911
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9002+4.679 * -0.0633-0.327 * 0.9724
=-2.58

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $3.37 Mil.
Revenue was 6.22 + 5.508 + 5.6 + 5.156 = $22.48 Mil.
Gross Profit was 2.145 + 1.909 + 2.032 + 1.258 = $7.34 Mil.
Total Current Assets was $6.07 Mil.
Total Assets was $24.12 Mil.
Property, Plant and Equipment(Net PPE) was $16.56 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.65 Mil.
Selling, General & Admin. Expense(SGA) was $5.84 Mil.
Total Current Liabilities was $14.88 Mil.
Long-Term Debt was $0.40 Mil.
Net Income was -0.662 + 0.252 + 0.576 + -0.311 = $-0.15 Mil.
Non Operating Income was -0.96 + 0.309 + 0.319 + -0.139 = $-0.47 Mil.
Cash Flow from Operations was 1.036 + 0.176 + 0.855 + -0.214 = $1.85 Mil.
Accounts Receivable was $2.90 Mil.
Revenue was 5.803 + 6.54 + 7.186 + 6.966 = $26.50 Mil.
Gross Profit was 1.855 + 2.154 + 2.059 + 1.143 = $7.21 Mil.
Total Current Assets was $5.45 Mil.
Total Assets was $25.06 Mil.
Property, Plant and Equipment(Net PPE) was $18.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.20 Mil.
Selling, General & Admin. Expense(SGA) was $7.65 Mil.
Total Current Liabilities was $15.64 Mil.
Long-Term Debt was $0.69 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)
=(3.373 / 22.484) / (2.9 / 26.495)
=0.15001779 / 0.10945461
=1.3706

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)
=(1.909 / 26.495) / (2.145 / 22.484)
=0.27216456 / 0.32663227
=0.8332

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 - (6.072 + 16.564) / 24.119) / (1 - (5.452 + 18.167) / 25.064)
=0.06148679 / 0.05765241
=1.0665

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
=22.484 / 26.495
=0.8486

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))
=(2.2 / (2.2 + 18.167)) / (1.652 / (1.652 + 16.564))
=0.10801787 / 0.0906895
=1.1911

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)
=(5.843 / 22.484) / (7.649 / 26.495)
=0.25987369 / 0.28869598
=0.9002

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)
=((0.401 + 14.878) / 24.119) / ((0.689 + 15.639) / 25.064)
=0.63348398 / 0.65145228
=0.9724

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
=(-0.145 - -0.471 - 1.853) / 24.119
=-0.0633

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 -2.58 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 1.12431.62160.67461.06741.15310.76730.88430.90411.2857
GMI 1.12370.85581.13911.04480.8291.53710.9390.80380.7583
AQI 0.9720.89180.78760.91140.90540.94991.05150.86671.0509
SGI 1.24511.14111.01541.0510.92160.76230.90551.15160.7823
DEPI 0.81370.8490.87451.00061.13741.04241.03561.12710
SGAI 0.98711.10011.13490.67381.22091.22650.88430.85860.8395
LVGI 1.02621.03991.03710.95520.99971.08531.07370.86990.9782
TATA -0.06650.0092-0.1289-0.0455-0.0513-0.2471-0.1726-0.0172-0.0529
M-score -2.43-1.91-3.43-2.53-2.80-3.86-3.49-2.59-2.85

Bioanalytical Systems, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.90410.89170.90450.98430.97070.77130.96790.90571.28571.3706
GMI 0.80381.01981.29811.35971.30761.0460.8250.73560.75830.8332
AQI 0.86670.86910.91961.12491.10851.18851.14651.15071.05091.0665
SGI 1.15161.06810.97280.92050.85110.81350.79340.77460.78230.8486
DEPI 1.12711.11151.04530.91460.86910.8710.95791.05281.17861.1911
SGAI 0.85851.00681.26251.27341.18881.01930.79280.78220.83950.9002
LVGI 0.86990.89010.96911.12431.23581.17871.12471.04610.91440.9724
TATA -0.0172-0.0696-0.0866-0.1287-0.2299-0.187-0.1497-0.1519-0.0529-0.0633
M-score -2.59-2.84-2.90-3.02-3.63-3.71-3.44-3.53-2.69-2.58
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