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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-1.69 (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 -1.69 signals that the company is a manipulator.

BBGI' s 10-Year Beneish M-Score Range
Min: -3.67   Max: -1.69
Current: -1.69

-3.67
-1.69

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.69. The lowest was -3.67. 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 * 0.8046+0.528 * 1.1076+0.404 * 1.013+0.892 * 1.484+0.115 * 0.9593
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6987+4.679 * 0.0758-0.327 * 0.7805
=-1.69

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $19.79 Mil.
Revenue was 27.024 + 24.251 + 18.562 + 13.047 = $82.88 Mil.
Gross Profit was 8.283 + 6.437 + 6.301 + 3.626 = $24.65 Mil.
Total Current Assets was $35.91 Mil.
Total Assets was $315.49 Mil.
Property, Plant and Equipment(Net PPE) was $27.70 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.26 Mil.
Selling, General & Admin. Expense(SGA) was $9.35 Mil.
Total Current Liabilities was $11.98 Mil.
Long-Term Debt was $92.03 Mil.
Net Income was 2.532 + 1.298 + 33.836 + 2.459 = $40.13 Mil.
Non Operating Income was 0.019 + 0.472 + 0.024 + 0.254 = $0.77 Mil.
Cash Flow from Operations was 3.92 + 1.564 + 3.751 + 6.195 = $15.43 Mil.
Accounts Receivable was $16.57 Mil.
Revenue was 14.141 + 12.955 + 15.028 + 13.727 = $55.85 Mil.
Gross Profit was 5.08 + 3.348 + 5.496 + 4.471 = $18.40 Mil.
Total Current Assets was $35.00 Mil.
Total Assets was $263.95 Mil.
Property, Plant and Equipment(Net PPE) was $20.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.35 Mil.
Selling, General & Admin. Expense(SGA) was $9.02 Mil.
Total Current Liabilities was $14.35 Mil.
Long-Term Debt was $97.14 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)
=(19.786 / 82.884) / (16.571 / 55.851)
=0.23871917 / 0.29670015
=0.8046

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)
=(6.437 / 55.851) / (8.283 / 82.884)
=0.32935847 / 0.29736741
=1.1076

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 - (35.911 + 27.697) / 315.492) / (1 - (35.004 + 20.924) / 263.951)
=0.79838475 / 0.78811219
=1.013

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
=82.884 / 55.851
=1.484

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))
=(2.352 / (2.352 + 20.924)) / (3.261 / (3.261 + 27.697))
=0.10104829 / 0.10533626
=0.9593

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)
=(9.352 / 82.884) / (9.019 / 55.851)
=0.11283239 / 0.16148323
=0.6987

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)
=((92.025 + 11.976) / 315.492) / ((97.138 + 14.348) / 263.951)
=0.32964703 / 0.42237385
=0.7805

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
=(40.125 - 0.769 - 15.43) / 315.492
=0.0758

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 -1.69 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.9561.08510.89460.98611.08040.99860.96910.99741.69050.9802
GMI 1.00031.01761.02820.96342.40360.81060.96870.93531.11991.0744
AQI 0.98641.01761.03180.97980.99990.98780.99321.01511.00370.9968
SGI 1.01711.00721.06940.90710.79661.01270.99721.0260.55961.0465
DEPI 0.99431.37420.97971.07980.88491.01921.05781.08980.84891.4223
SGAI 1.0621.00391.02211.03280.17421.01811.02680.98181.90130.9887
LVGI 0.93851.01081.08111.16530.92650.91180.89060.91720.91190.7766
TATA -0.0276-0.0304-0.0349-0.1981-0.0318-0.0348-0.0424-0.0256-0.02720.0721
M-score -2.63-2.48-2.68-3.58-1.84-2.71-2.69-2.57-2.44-1.96

Beasley Broadcast Group Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.04630.98671.0621.17921.39091.73711.60941.40521.10030.8046
GMI 0.94391.00191.03011.07451.09521.111.13281.11981.11391.1076
AQI 1.0031.0070.9911.00371.00030.99941.00980.99681.01151.013
SGI 1.03891.06790.94760.80230.67380.5380.59430.731.02091.484
DEPI 1.07391.03061.03360.84891.04011.01710.81941.42231.00670.9593
SGAI 0.9780.98621.151.32661.60192.00831.77931.41741.04470.6987
LVGI 0.92340.92660.91820.91190.90540.91050.90460.77660.77970.7805
TATA -0.0189-0.02-0.0235-0.0272-0.035-0.0342-0.03620.07210.08150.0758
M-score -2.48-2.49-2.56-2.62-2.59-2.46-2.50-1.90-1.86-1.69
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