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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

BASI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.91   Max: -1.43
Current: -2.61

-3.91
-1.43

During the past 13 years, the highest Beneish M-Score of Bioanalytical Systems Inc was -1.43. The lowest was -3.91. And the median was -2.68.


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 * 1.2301+0.528 * 0.9816+0.404 * 0.9684+0.892 * 0.9233+0.115 * 1.1239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9631+4.679 * -0.0629-0.327 * 0.9154
=-2.61

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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 $6.69 Mil.
Total Assets was $23.82 Mil.
Property, Plant and Equipment(Net PPE) was $15.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.41 Mil.
Selling, General & Admin. Expense(SGA) was $5.87 Mil.
Total Current Liabilities was $9.30 Mil.
Long-Term Debt was $3.73 Mil.
Net Income was -0.711 + 1.478 + 0.15 + 0.182 = $1.10 Mil.
Non Operating Income was 0.138 + 0.034 + 0.198 + 0.122 = $0.49 Mil.
Cash Flow from Operations was 0.929 + 0.735 + 0.601 + -0.161 = $2.10 Mil.
Accounts Receivable was $2.56 Mil.
Revenue was 6.42 + 6.032 + 5.912 + 6.22 = $24.58 Mil.
Gross Profit was 1.821 + 1.984 + 2.012 + 2.145 = $7.96 Mil.
Total Current Assets was $6.66 Mil.
Total Assets was $23.77 Mil.
Property, Plant and Equipment(Net PPE) was $15.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.60 Mil.
Selling, General & Admin. Expense(SGA) was $6.60 Mil.
Total Current Liabilities was $9.47 Mil.
Long-Term Debt was $4.75 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)
=(2.904 / 22.698) / (2.557 / 24.584)
=0.12794079 / 0.10401074
=1.2301

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)
=(2.49 / 24.584) / (1.293 / 22.698)
=0.32386918 / 0.32994096
=0.9816

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 - (6.691 + 15.989) / 23.815) / (1 - (6.655 + 15.949) / 23.774)
=0.04765904 / 0.04921343
=0.9684

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
=22.698 / 24.584
=0.9233

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))
=(1.597 / (1.597 + 15.949)) / (1.409 / (1.409 + 15.989))
=0.0910179 / 0.08098632
=1.1239

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)
=(5.865 / 22.698) / (6.596 / 24.584)
=0.25839281 / 0.26830459
=0.9631

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)
=((3.734 + 9.303) / 23.815) / ((4.75 + 9.467) / 23.774)
=0.54742809 / 0.59800623
=0.9154

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
=(1.099 - 0.492 - 2.104) / 23.815
=-0.0629

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 -2.61 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 1.13911.04480.8291.53710.9390.80381.30760.75830.98710.9816
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 -0.1289-0.0455-0.0513-0.2471-0.1726-0.0172-0.2299-0.0558-0.0776-0.0629
M-score -3.49-2.50-2.85-3.83-3.65-2.53-3.63-2.62-3.12-2.61

Bioanalytical Systems Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.97631.37511.41031.19260.96070.63391.10011.07141.15741.2301
GMI 0.73560.75830.83320.85170.92920.9871.02411.11451.0240.9816
AQI 1.15071.05091.06651.00511.02610.86820.79580.82790.78370.9684
SGI 0.77460.78230.84860.94151.02481.11411.07671.03371.01980.9233
DEPI 1.05281.17861.19111.14331.07771.01580.99611.0031.0441.1239
SGAI 0.78220.83950.90021.10781.10231.02591.05340.98090.86550.9631
LVGI 1.04610.97821.04240.99660.97340.94850.92650.93550.84510.9154
TATA -0.1519-0.0529-0.0633-0.0644-0.0412-0.0776-0.0373-0.0671-0.033-0.0629
M-score -3.46-2.63-2.57-2.73-2.71-3.12-2.55-2.68-2.47-2.61
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