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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

BBGI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67   Max: -1.73
Current: -2.46

-3.67
-1.73

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.73. The lowest was -3.67. And the median was -2.57.


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 * 0.7784+0.528 * 1.1004+0.404 * 0.9865+0.892 * 1.3354+0.115 * 0.8517
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7213+4.679 * -0.0379-0.327 * 0.9163
=-2.46

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $18.3 Mil.
Revenue was 27.455 + 28.407 + 26.264 + 27.024 = $109.2 Mil.
Gross Profit was 7.469 + 9.006 + 6.612 + 8.283 = $31.4 Mil.
Total Current Assets was $37.8 Mil.
Total Assets was $311.8 Mil.
Property, Plant and Equipment(Net PPE) was $27.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.6 Mil.
Selling, General & Admin. Expense(SGA) was $9.0 Mil.
Total Current Liabilities was $11.1 Mil.
Long-Term Debt was $85.0 Mil.
Net Income was 1.821 + 3.27 + -0.738 + 2.532 = $6.9 Mil.
Non Operating Income was -0.04 + -0.169 + 0.002 + 0.019 = $-0.2 Mil.
Cash Flow from Operations was 6.088 + 4.454 + 4.433 + 3.92 = $18.9 Mil.
Accounts Receivable was $17.6 Mil.
Revenue was 24.251 + 18.562 + 13.047 + 25.876 = $81.7 Mil.
Gross Profit was 6.437 + 6.301 + 3.626 + 9.485 = $25.8 Mil.
Total Current Assets was $34.3 Mil.
Total Assets was $314.1 Mil.
Property, Plant and Equipment(Net PPE) was $28.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.0 Mil.
Selling, General & Admin. Expense(SGA) was $9.4 Mil.
Total Current Liabilities was $12.3 Mil.
Long-Term Debt was $93.3 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)
=(18.316 / 109.15) / (17.621 / 81.736)
=0.16780577 / 0.21558432
=0.7784

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)
=(25.849 / 81.736) / (31.37 / 109.15)
=0.31624988 / 0.28740266
=1.1004

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 - (37.826 + 27.394) / 311.839) / (1 - (34.292 + 28.014) / 314.122)
=0.79085361 / 0.80165031
=0.9865

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
=109.15 / 81.736
=1.3354

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))
=(3.038 / (3.038 + 28.014)) / (3.555 / (3.555 + 27.394))
=0.09783589 / 0.11486639
=0.8517

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)
=(9.046 / 109.15) / (9.392 / 81.736)
=0.08287678 / 0.11490653
=0.7213

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)
=((84.964 + 11.087) / 311.839) / ((93.303 + 12.29) / 314.122)
=0.30801471 / 0.33615283
=0.9163

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
=(6.885 - -0.188 - 18.895) / 311.839
=-0.0379

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 -2.46 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08510.89460.98611.14280.9440.96910.99740.9041.8330.6235
GMI 1.01761.02820.96341.02881.89370.96870.93531.04241.15431.0919
AQI 1.01761.03180.97980.99990.98780.99321.01510.98791.01270.993
SGI 1.00721.06940.90710.79661.01270.99721.0261.04650.55961.8047
DEPI 1.37420.97970.9990.95651.01921.05781.08980.99741.21050.671
SGAI 1.00391.02211.03280.99030.1791.02680.98181.01671.84890.5796
LVGI 1.01081.08111.16530.92650.91180.89060.91720.91190.77660.9096
TATA -0.0304-0.0413-0.1981-0.0305-0.0348-0.0424-0.0256-0.02720.0721-0.0268
M-score -2.48-2.71-3.59-2.64-2.04-2.69-2.57-2.61-1.73-2.12

Beasley Broadcast Group Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.9040.91430.93891.11121.31711.43371.48861.06630.86780.7784
GMI 1.04241.05741.04151.08611.11151.11761.18041.17121.13391.1004
AQI 0.98791.00030.99941.00981.01271.01151.0130.99950.9930.9865
SGI 1.04651.02510.99530.86080.77880.78360.80211.06271.29671.3354
DEPI 0.99741.04011.01710.81941.21051.00670.95931.08110.6710.8517
SGAI 1.0171.0531.08551.22851.32851.36111.29270.98330.80260.7213
LVGI 0.91190.90540.91050.90460.77660.77970.78050.79070.90960.9163
TATA -0.0272-0.035-0.0329-0.03490.07320.08260.07580.0733-0.0268-0.0379
M-score -2.61-2.64-2.66-2.64-1.94-1.81-1.74-1.85-2.37-2.46
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