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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-2.11 (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.

Beasley Broadcast Group Inc has a M-score of -2.11 signals that the company is a manipulator.

BBGI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Max: -1.93
Current: -2.11

-3.58
-1.93

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.93. The lowest was -3.58. And the median was -2.58.


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 Beasley Broadcast Group 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 * 0.6235+0.528 * 1.0919+0.404 * 0.9936+0.892 * 1.8047+0.115 * 0.671
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5053+4.679 * -0.0268-0.327 * 0.917
=-2.11

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $19.8 Mil.
Revenue was 28.407 + 26.264 + 27.024 + 24.251 = $105.9 Mil.
Gross Profit was 9.006 + 6.612 + 8.283 + 6.437 = $30.3 Mil.
Total Current Assets was $37.1 Mil.
Total Assets was $311.4 Mil.
Property, Plant and Equipment(Net PPE) was $27.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.8 Mil.
Selling, General & Admin. Expense(SGA) was $9.3 Mil.
Total Current Liabilities was $10.9 Mil.
Long-Term Debt was $86.5 Mil.
Net Income was 3.27 + -0.738 + 2.532 + 1.298 = $6.4 Mil.
Non Operating Income was -0.169 + 0.002 + 0.019 + 0.472 = $0.3 Mil.
Cash Flow from Operations was 4.454 + 4.433 + 3.92 + 1.564 = $14.4 Mil.
Accounts Receivable was $17.6 Mil.
Revenue was 18.562 + 13.047 + 14.141 + 12.955 = $58.7 Mil.
Gross Profit was 6.301 + 3.626 + 5.08 + 3.348 = $18.4 Mil.
Total Current Assets was $35.3 Mil.
Total Assets was $314.2 Mil.
Property, Plant and Equipment(Net PPE) was $28.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.5 Mil.
Selling, General & Admin. Expense(SGA) was $10.2 Mil.
Total Current Liabilities was $14.1 Mil.
Long-Term Debt was $93.0 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)
=(19.848 / 105.946) / (17.638 / 58.705)
=0.18734072 / 0.30045141
=0.6235

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)
=(6.612 / 58.705) / (9.006 / 105.946)
=0.31266502 / 0.28635343
=1.0919

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 - (37.08 + 27.523) / 311.402) / (1 - (35.318 + 28.254) / 314.191)
=0.79254147 / 0.79766448
=0.9936

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
=105.946 / 58.705
=1.8047

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))
=(2.526 / (2.526 + 28.254)) / (3.835 / (3.835 + 27.523))
=0.08206628 / 0.12229734
=0.671

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)
=(9.288 / 105.946) / (10.185 / 58.705)
=0.0876673 / 0.17349459
=0.5053

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)
=((86.462 + 10.899) / 311.402) / ((93.025 + 14.097) / 314.191)
=0.31265374 / 0.34094548
=0.917

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
=(6.362 - 0.324 - 14.371) / 311.402
=-0.0268

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.

Beasley Broadcast Group Inc has a M-score of -2.11 signals that the company is likely to 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.

Beasley Broadcast Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08510.89460.98611.08040.99860.96910.99740.9041.8330.6235
GMI 1.01761.02820.96341.02881.89370.96870.93531.04241.15431.0919
AQI 1.01761.03180.97980.99990.98780.99321.01511.00370.99620.9936
SGI 1.00721.06940.90710.79661.01270.99721.0261.04650.55961.8047
DEPI 1.37420.97970.9990.95651.01921.05781.08980.84891.42230.671
SGAI 1.00391.02211.03280.99030.1791.02680.98181.01671.84890.5796
LVGI 1.01081.08111.16530.92650.91180.89060.91720.91190.77030.917
TATA -0.0304-0.0413-0.1981-0.0305-0.0348-0.0424-0.0256-0.02720.0725-0.0268
M-score -2.48-2.71-3.59-2.69-1.99-2.69-2.57-2.62-1.71-2.13

Beasley Broadcast Group Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.0621.17921.39091.73711.60941.40521.10030.80460.65050.6235
GMI 1.03011.07451.09521.111.13281.11981.11391.10761.10631.0919
AQI 0.9911.00371.00030.99941.00980.99621.01151.0130.99950.9936
SGI 0.94760.80230.67380.5380.59430.731.02091.4841.74191.8047
DEPI 1.03360.84891.04011.01710.81941.42231.00670.95931.08110.671
SGAI 1.151.32661.60192.00831.77931.61771.18490.79290.67980.5053
LVGI 0.91820.91190.90540.91050.90460.77030.77970.78050.79070.917
TATA -0.0235-0.0272-0.035-0.0342-0.03620.07250.08150.07580.0733-0.0268
M-score -2.56-2.62-2.59-2.46-2.50-1.93-1.88-1.71-1.61-2.11
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