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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-3.26 (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 -3.27 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: -3.26

-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 * 0.9218+0.528 * 1.412+0.404 * 0.9641+0.892 * 0.8394+0.115 * 1.1009
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2612+4.679 * -0.146-0.327 * 1.1729
=-3.27

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $2.50 Mil.
Revenue was 5.053 + 5.339 + 4.895 + 4.977 = $20.26 Mil.
Gross Profit was 1.173 + 1.316 + 0.984 + 1.293 = $4.77 Mil.
Total Current Assets was $6.31 Mil.
Total Assets was $23.51 Mil.
Property, Plant and Equipment(Net PPE) was $16.09 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.37 Mil.
Selling, General & Admin. Expense(SGA) was $6.10 Mil.
Total Current Liabilities was $13.81 Mil.
Long-Term Debt was $0.23 Mil.
Net Income was -0.433 + -0.254 + -0.506 + -0.711 = $-1.90 Mil.
Non Operating Income was 0.022 + 0.079 + 0.09 + 0.138 = $0.33 Mil.
Cash Flow from Operations was 0.144 + 0.474 + -0.348 + 0.929 = $1.20 Mil.
Accounts Receivable was $3.23 Mil.
Revenue was 6.15 + 5.726 + 5.845 + 6.42 = $24.14 Mil.
Gross Profit was 2.49 + 1.802 + 1.904 + 1.821 = $8.02 Mil.
Total Current Assets was $6.67 Mil.
Total Assets was $23.36 Mil.
Property, Plant and Equipment(Net PPE) was $15.55 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.47 Mil.
Selling, General & Admin. Expense(SGA) was $5.76 Mil.
Total Current Liabilities was $7.93 Mil.
Long-Term Debt was $3.96 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)
=(2.497 / 20.264) / (3.227 / 24.141)
=0.12322345 / 0.133673
=0.9218

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)
=(8.017 / 24.141) / (4.766 / 20.264)
=0.33209063 / 0.23519542
=1.412

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 - (6.314 + 16.09) / 23.514) / (1 - (6.674 + 15.546) / 23.364)
=0.04720592 / 0.04896422
=0.9641

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
=20.264 / 24.141
=0.8394

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))
=(1.471 / (1.471 + 15.546)) / (1.371 / (1.371 + 16.09))
=0.08644297 / 0.07851784
=1.1009

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)
=(6.099 / 20.264) / (5.761 / 24.141)
=0.3009771 / 0.23863966
=1.2612

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)
=((0.232 + 13.811) / 23.514) / ((3.964 + 7.933) / 23.364)
=0.59721868 / 0.50920219
=1.1729

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
=(-1.904 - 0.329 - 1.199) / 23.514
=-0.146

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 -3.27 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 local exchange's 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 -0.154-0.0477-0.0519-0.2471-0.1726-0.0172-0.2299-0.0558-0.0776-0.0629
M-score -3.61-2.51-2.85-3.83-3.65-2.53-3.63-2.62-3.12-2.61

Bioanalytical Systems Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.19260.96070.63391.10011.07141.15741.23010.6240.97650.9218
GMI 0.85170.92920.9871.02411.11451.0240.98161.05591.09791.412
AQI 1.00511.02610.86820.79580.82790.78370.96841.05780.96930.9641
SGI 0.94151.02481.11411.07671.03371.01980.92330.89830.88920.8394
DEPI 1.14331.07771.01580.99611.0031.0441.12391.13811.15011.1009
SGAI 1.10781.10231.02591.05340.98090.86550.96310.9490.94091.2612
LVGI 0.92060.97340.94850.92650.93550.84510.91540.90661.01091.1729
TATA -0.0668-0.0412-0.0776-0.0373-0.0671-0.033-0.0629-0.0903-0.0922-0.146
M-score -2.72-2.71-3.12-2.55-2.68-2.47-2.61-3.23-2.97-3.27
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