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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

BBGI' s 10-Year Beneish M-Score Range
Min: -3.67   Max: -2.03
Current: -2.64

-3.67
-2.03

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -2.03. The lowest was -3.67. And the median was -2.61.


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 * 1.1112+0.528 * 1.0861+0.404 * 1.0098+0.892 * 0.8608+0.115 * 0.8194
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2285+4.679 * -0.0349-0.327 * 0.9046
=-2.64

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $16.4 Mil.
Revenue was 13.047 + 25.876 + 24.219 + 27.288 = $90.4 Mil.
Gross Profit was 3.626 + 9.485 + 7.117 + 10.226 = $30.5 Mil.
Total Current Assets was $34.8 Mil.
Total Assets was $263.7 Mil.
Property, Plant and Equipment(Net PPE) was $17.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.4 Mil.
Selling, General & Admin. Expense(SGA) was $9.1 Mil.
Total Current Liabilities was $12.7 Mil.
Long-Term Debt was $95.9 Mil.
Net Income was 2.459 + 3.021 + 0.683 + 3.581 = $9.7 Mil.
Non Operating Income was 0.254 + -0.337 + 0.024 + -0.017 = $-0.1 Mil.
Cash Flow from Operations was 6.195 + 2.754 + 4.214 + 5.866 = $19.0 Mil.
Accounts Receivable was $17.1 Mil.
Revenue was 25.95 + 26.856 + 24.812 + 27.437 = $105.1 Mil.
Gross Profit was 9.444 + 10.082 + 8.109 + 10.789 = $38.4 Mil.
Total Current Assets was $34.6 Mil.
Total Assets was $262.9 Mil.
Property, Plant and Equipment(Net PPE) was $20.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.2 Mil.
Selling, General & Admin. Expense(SGA) was $8.6 Mil.
Total Current Liabilities was $14.9 Mil.
Long-Term Debt was $104.7 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)
=(16.363 / 90.43) / (17.107 / 105.055)
=0.18094659 / 0.16283851
=1.1112

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)
=(9.485 / 105.055) / (3.626 / 90.43)
=0.36575127 / 0.33676877
=1.0861

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 - (34.777 + 17.896) / 263.716) / (1 - (34.585 + 19.964) / 262.869)
=0.8002662 / 0.79248599
=1.0098

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
=90.43 / 105.055
=0.8608

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))
=(2.175 / (2.175 + 19.964)) / (2.438 / (2.438 + 17.896))
=0.09824292 / 0.11989771
=0.8194

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)
=(9.057 / 90.43) / (8.565 / 105.055)
=0.10015482 / 0.08152872
=1.2285

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)
=((95.859 + 12.685) / 263.716) / ((104.688 + 14.924) / 262.869)
=0.41159429 / 0.45502513
=0.9046

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
=(9.744 - -0.076 - 19.029) / 263.716
=-0.0349

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 -2.64 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 0.94170.9561.08510.89460.98611.14280.9440.96910.99740.904
GMI 0.97871.00031.01761.02820.96341.02881.89370.96870.93531.0424
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 1.02131.0621.00391.02211.03280.99030.1791.02680.98181.0167
LVGI 0.9190.93851.01081.08111.16530.92650.91180.89060.91720.9119
TATA -0.036-0.0276-0.0304-0.0349-0.1981-0.0305-0.0348-0.0424-0.0256-0.0272
M-score -2.62-2.63-2.48-2.68-3.58-2.65-2.04-2.69-2.57-2.61

Beasley Broadcast Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.98531.03330.99741.04630.98670.93840.9040.91430.93891.1112
GMI 0.97330.95750.93530.94391.00191.01491.04241.05741.04151.0861
AQI 0.99461.02361.01511.0031.0070.9910.98791.00030.99941.0098
SGI 0.97460.98431.0261.03891.06791.07241.04651.02510.99530.8608
DEPI 1.06981.08811.08931.07391.03061.03360.99741.04011.01710.8194
SGAI 1.03130.990.98170.9780.98621.01621.0171.0531.08551.2285
LVGI 0.88790.90030.91720.92340.92660.91820.91190.90540.91050.9046
TATA -0.0351-0.0274-0.0256-0.0189-0.02-0.0235-0.0272-0.035-0.0329-0.0349
M-score -2.66-2.56-2.57-2.48-2.49-2.55-2.61-2.64-2.66-2.64
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