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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: -3.69   Max: -1.82
Current: -2.64

-3.69
-1.82

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.82. The lowest was -3.69. 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 * 0.9143+0.528 * 1.0574+0.404 * 1.0003+0.892 * 1.0251+0.115 * 1.0401
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.053+4.679 * -0.035-0.327 * 0.9054
=-2.64

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $15.7 Mil.
Revenue was 24.219 + 27.288 + 25.95 + 26.856 = $104.3 Mil.
Gross Profit was 7.117 + 10.226 + 9.444 + 10.082 = $36.9 Mil.
Total Current Assets was $33.7 Mil.
Total Assets was $262.3 Mil.
Property, Plant and Equipment(Net PPE) was $20.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.3 Mil.
Selling, General & Admin. Expense(SGA) was $8.8 Mil.
Total Current Liabilities was $12.5 Mil.
Long-Term Debt was $100.6 Mil.
Net Income was 0.683 + 3.581 + 3.187 + 2.358 = $9.8 Mil.
Non Operating Income was 0.024 + -0.017 + 0.024 + -1.224 = $-1.2 Mil.
Cash Flow from Operations was 4.214 + 5.866 + 6.634 + 3.479 = $20.2 Mil.
Accounts Receivable was $16.7 Mil.
Revenue was 24.812 + 27.437 + 24.714 + 24.791 = $101.8 Mil.
Gross Profit was 8.109 + 10.789 + 8.974 + 10.156 = $38.0 Mil.
Total Current Assets was $35.4 Mil.
Total Assets was $260.8 Mil.
Property, Plant and Equipment(Net PPE) was $18.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.1 Mil.
Selling, General & Admin. Expense(SGA) was $8.2 Mil.
Total Current Liabilities was $13.0 Mil.
Long-Term Debt was $111.1 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)
=(15.686 / 104.313) / (16.736 / 101.754)
=0.15037435 / 0.16447511
=0.9143

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)
=(10.226 / 101.754) / (7.117 / 104.313)
=0.37372487 / 0.35344588
=1.0574

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 - (33.712 + 20.713) / 262.332) / (1 - (35.354 + 18.819) / 260.78)
=0.79253389 / 0.79226551
=1.0003

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
=104.313 / 101.754
=1.0251

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))
=(2.148 / (2.148 + 18.819)) / (2.263 / (2.263 + 20.713))
=0.1024467 / 0.09849408
=1.0401

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)
=(8.806 / 104.313) / (8.158 / 101.754)
=0.08441901 / 0.08017375
=1.053

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)
=((100.563 + 12.533) / 262.332) / ((111.125 + 13.044) / 260.78)
=0.43111782 / 0.47614464
=0.9054

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
=(9.809 - -1.193 - 20.193) / 262.332
=-0.035

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 0.92570.9561.10290.91540.94851.05730.99860.96910.99740.904
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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.96910.97010.98531.03330.99741.04630.98670.93840.9040.9143
GMI 0.96870.99910.97330.95750.93530.94391.00191.01491.04241.0574
AQI 0.99320.99450.99461.02361.01511.0031.0070.9910.98791.0003
SGI 0.99720.98760.97460.98431.0261.03891.06791.07241.04651.0251
DEPI 1.05821.03741.06981.08811.08931.07391.03061.03360.99741.0401
SGAI 1.02681.03481.03130.990.98170.9780.98621.01621.0171.053
LVGI 0.89060.88970.88790.90030.91720.92340.92660.91820.91190.9054
TATA -0.0424-0.0441-0.0351-0.0274-0.0256-0.0189-0.02-0.0235-0.0272-0.035
M-score -2.69-2.69-2.66-2.56-2.57-2.48-2.49-2.55-2.61-2.64
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