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Beasley Broadcast Group, Inc. (NAS:BBGI)
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.

Beasley Broadcast Group, Inc. has a M-score of -2.61 suggests that the company is not a manipulator.

BBGI' s 10-Year Beneish M-Score Range
Min: -3.61   Max: -2.3
Current: -2.61

-3.61
-2.3

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group, Inc. was -2.30. The lowest was -3.61. And the median was -2.62.


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 * 0.904+0.528 * 1.0424+0.404 * 0.9879+0.892 * 1.0465+0.115 * 0.9974
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.017+4.679 * -0.0272-0.327 * 0.9119
=-2.61

* 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 $17.2 Mil.
Revenue was 27.288 + 25.95 + 26.856 + 24.812 = $104.9 Mil.
Gross Profit was 10.226 + 9.444 + 10.082 + 8.109 = $37.9 Mil.
Total Current Assets was $35.9 Mil.
Total Assets was $264.2 Mil.
Property, Plant and Equipment(Net PPE) was $20.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.2 Mil.
Selling, General & Admin. Expense(SGA) was $8.6 Mil.
Total Current Liabilities was $14.3 Mil.
Long-Term Debt was $102.6 Mil.
Net Income was 3.581 + 3.187 + 2.358 + 2.42 = $11.5 Mil.
Non Operating Income was -0.017 + 0.024 + -1.224 + 0.046 = $-1.2 Mil.
Cash Flow from Operations was 5.866 + 6.634 + 3.479 + 3.934 = $19.9 Mil.
Accounts Receivable was $18.2 Mil.
Revenue was 27.437 + 24.714 + 24.791 + 23.299 = $100.2 Mil.
Gross Profit was 10.789 + 8.974 + 10.156 + 7.793 = $37.7 Mil.
Total Current Assets was $33.4 Mil.
Total Assets was $259.4 Mil.
Property, Plant and Equipment(Net PPE) was $19.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General & Admin. Expense(SGA) was $8.1 Mil.
Total Current Liabilities was $12.6 Mil.
Long-Term Debt was $113.3 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)
=(17.195 / 104.906) / (18.175 / 100.241)
=0.16390864 / 0.18131304
=0.904

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)
=(9.444 / 100.241) / (10.226 / 104.906)
=0.37621333 / 0.36090405
=1.0424

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 - (35.852 + 20.137) / 264.209) / (1 - (33.391 + 19.067) / 259.373)
=0.78808822 / 0.79775073
=0.9879

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
=104.906 / 100.241
=1.0465

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))
=(2.097 / (2.097 + 19.067)) / (2.221 / (2.221 + 20.137))
=0.09908335 / 0.09933804
=0.9974

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)
=(8.625 / 104.906) / (8.104 / 100.241)
=0.08221646 / 0.08084516
=1.017

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)
=((102.625 + 14.316) / 264.209) / ((113.25 + 12.636) / 259.373)
=0.44260794 / 0.48534736
=0.9119

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
=(11.546 - -1.171 - 19.913) / 264.209
=-0.0272

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 -2.61 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.

Beasley Broadcast Group, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.92570.9561.10290.91540.94851.05730.99860.96910.99740.904
GMI 0.97871.00031.01761.02820.96342.40360.81060.96870.93531.0424
AQI 0.97010.98641.01761.03180.97980.99990.98780.99321.01510.9879
SGI 1.06751.01711.00721.06940.90710.79661.01270.99721.0261.0465
DEPI 1.16770.99431.37420.97971.07980.88491.01921.05781.08980.9974
SGAI 1.02131.0621.00391.02211.03280.17421.01811.02680.98181.0167
LVGI 0.9190.93851.01081.08111.16530.92650.91180.89060.91720.9119
TATA -0.036-0.0276-0.0304-0.0349-0.1981-0.0318-0.0348-0.0424-0.0256-0.0272
M-score -2.64-2.63-2.47-2.66-3.62-1.86-2.71-2.69-2.57-2.61

Beasley Broadcast Group, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.87190.96910.97010.98531.03330.99741.04630.98670.93840.904
GMI 0.89010.96870.99910.97330.95750.93530.94391.00191.01491.0424
AQI 0.98180.99320.99450.99461.02361.01511.0031.0070.9910.9879
SGI 1.02450.99720.98760.97460.98431.0261.03891.06791.07241.0465
DEPI 1.05991.05821.03741.06981.08811.08931.07391.03061.03360.9974
SGAI 1.04871.02681.03481.03130.990.98170.9780.98621.01621.017
LVGI 0.89460.89060.88970.88790.90030.91720.92340.92660.91820.9119
TATA -0.0411-0.0424-0.0441-0.0351-0.0274-0.0256-0.0189-0.02-0.0235-0.0272
M-score -2.80-2.69-2.69-2.66-2.56-2.57-2.48-2.49-2.55-2.61
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