Switch to:
GuruFocus has detected 5 Warning Signs with Beasley Broadcast Group Inc $BBGI.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-1.27 (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 -1.27 signals that the company is a manipulator.

BBGI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Max: -1.27
Current: -1.27

-3.58
-1.27

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.27. 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 * 1.8821+0.528 * 0.9793+0.404 * 0.9382+0.892 * 1.2899+0.115 * 1.4435
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8558+4.679 * 0.0462-0.327 * 1.3614
=-1.27

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $48.2 Mil.
Revenue was 53.704 + 27.729 + 27.777 + 27.455 = $136.7 Mil.
Gross Profit was 16.234 + 8.21 + 8.048 + 7.469 = $40.0 Mil.
Total Current Assets was $103.4 Mil.
Total Assets was $661.7 Mil.
Property, Plant and Equipment(Net PPE) was $60.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.2 Mil.
Selling, General & Admin. Expense(SGA) was $10.3 Mil.
Total Current Liabilities was $33.9 Mil.
Long-Term Debt was $247.7 Mil.
Net Income was 41.504 + 1.694 + 2.469 + 1.821 = $47.5 Mil.
Non Operating Income was -0.751 + 0.316 + 0.269 + -0.04 = $-0.2 Mil.
Cash Flow from Operations was 4.013 + 4.293 + 2.757 + 6.088 = $17.2 Mil.
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 $24.5 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.



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)
=(48.186 / 136.665) / (19.848 / 105.946)
=0.35258479 / 0.18734072
=1.8821

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)
=(30.338 / 105.946) / (39.961 / 136.665)
=0.28635343 / 0.29240113
=0.9793

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 - (103.419 + 60.167) / 661.67) / (1 - (37.08 + 24.472) / 311.402)
=0.752768 / 0.8023391
=0.9382

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
=136.665 / 105.946
=1.2899

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))
=(3.835 / (3.835 + 24.472)) / (6.232 / (6.232 + 60.167))
=0.13547886 / 0.09385684
=1.4435

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)
=(10.304 / 136.665) / (9.334 / 105.946)
=0.07539604 / 0.08810149
=0.8558

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)
=((247.692 + 33.947) / 661.67) / ((86.462 + 10.899) / 311.402)
=0.42564874 / 0.31265374
=1.3614

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
=(47.488 - -0.206 - 17.151) / 661.67
=0.0462

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 -1.27 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 local exchange's currency.

Beasley Broadcast Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.89460.98611.08040.99860.96910.99741.69050.98020.62351.8821
GMI 1.02820.96342.40360.81060.96870.93531.11991.07441.09190.9794
AQI 1.03180.97980.99990.98780.99321.01511.00370.99621.00590.9382
SGI 1.06940.90710.79661.01270.99721.0260.55961.04651.80471.2899
DEPI 0.97971.07980.88491.01921.05781.08980.84891.42230.60571.4433
SGAI 1.02211.03280.17421.01811.02680.98181.90131.17930.46770.8891
LVGI 1.08111.16530.92650.91180.89060.91720.91190.77030.9171.3614
TATA -0.0413-0.1981-0.0318-0.0348-0.0424-0.0256-0.02720.0725-0.02680.0462
M-score -2.71-3.58-1.84-2.71-2.69-2.57-2.44-1.99-2.11-1.28

Beasley Broadcast Group Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.60941.40521.10030.80460.65050.62350.66660.72210.89241.8821
GMI 1.13281.11981.11391.10761.10631.09191.06591.04970.97830.9793
AQI 1.00980.99621.01151.0130.99951.00590.98650.99080.99260.9382
SGI 0.59430.731.02091.4841.74191.80471.55931.3261.15891.2899
DEPI 0.81941.42231.00670.95931.08110.60570.85170.91740.92141.4435
SGAI 1.77931.69061.2360.83070.71180.48590.52470.62320.71270.8558
LVGI 0.90460.77030.77970.78050.79070.9170.91630.91150.92621.3614
TATA -0.03620.07250.08150.07580.0733-0.0268-0.0379-0.0352-0.02780.0462
M-score -2.50-1.94-1.89-1.72-1.61-2.11-2.34-2.50-2.52-1.27
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK