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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

BASI' s 10-Year Beneish M-Score Range
Min: -3.91   Max: -1.43
Current: -3.12

-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 -2.67.


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 * 0.6339+0.528 * 0.987+0.404 * 0.8682+0.892 * 1.1141+0.115 * 1.0158
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0259+4.679 * -0.0776-0.327 * 0.9485
=-3.12

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was -0.404 + 0.215 + -0.219 + -0.662 = $-1.07 Mil.
Non Operating Income was 0.18 + 0.067 + -0.196 + -0.96 = $-0.91 Mil.
Cash Flow from Operations was 0.469 + 0.21 + -0.031 + 1.036 = $1.68 Mil.
Accounts Receivable was $3.62 Mil.
Revenue was 5.508 + 5.6 + 5.156 + 5.803 = $22.07 Mil.
Gross Profit was 1.909 + 2.032 + 1.258 + 1.855 = $7.05 Mil.
Total Current Assets was $7.23 Mil.
Total Assets was $25.60 Mil.
Property, Plant and Equipment(Net PPE) was $16.91 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.72 Mil.
Selling, General & Admin. Expense(SGA) was $5.77 Mil.
Total Current Liabilities was $11.03 Mil.
Long-Term Debt was $5.11 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)
=(2.557 / 24.584) / (3.621 / 22.067)
=0.10401074 / 0.16409118
=0.6339

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)
=(1.984 / 22.067) / (1.821 / 24.584)
=0.31966284 / 0.32386918
=0.987

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 - (6.655 + 15.949) / 23.774) / (1 - (7.233 + 16.913) / 25.597)
=0.04921343 / 0.05668633
=0.8682

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
=24.584 / 22.067
=1.1141

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))
=(1.723 / (1.723 + 16.913)) / (1.597 / (1.597 + 15.949))
=0.09245546 / 0.0910179
=1.0158

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)
=(6.596 / 24.584) / (5.771 / 22.067)
=0.26830459 / 0.26152173
=1.0259

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)
=((4.75 + 9.467) / 23.774) / ((5.112 + 11.026) / 25.597)
=0.59800623 / 0.63046451
=0.9485

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
=(-1.07 - -0.909 - 1.684) / 23.774
=-0.0776

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 -3.12 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.07460.9710.7340.92120.97631.37511.41031.19260.96070.6339
GMI 1.35971.30761.0460.8250.73560.75830.83320.85170.92920.987
AQI 1.12491.10851.18851.14651.15071.05091.06651.00511.02610.8682
SGI 0.92050.85110.81350.79340.77460.78230.84860.94151.02481.1141
DEPI 0.91460.86910.8710.95791.05281.17861.19111.14331.07771.0158
SGAI 1.27341.18881.01930.79280.78220.83950.90021.10781.10231.0259
LVGI 1.12431.23581.17871.12471.04610.91440.97240.92060.97340.9485
TATA -0.1287-0.2299-0.187-0.1503-0.155-0.0558-0.0664-0.0668-0.0412-0.0776
M-score -2.94-3.63-3.74-3.48-3.48-2.62-2.56-2.72-2.71-3.12
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