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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-2.66 (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 -2.66 suggests that the company is not a manipulator.

BBGI' s 10-Year Beneish M-Score Range
Min: -2.89   Max: -2.06
Current: -2.66

-2.89
-2.06

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -2.06. The lowest was -2.89. And the median was -2.55.


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 * 0.9389+0.528 * 1.0415+0.404 * 0.9994+0.892 * 0.9953+0.115 * 1.0171
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0855+4.679 * -0.0329-0.327 * 0.9105
=-2.66

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $16.6 Mil.
Revenue was 25.876 + 24.219 + 27.288 + 25.95 = $103.3 Mil.
Gross Profit was 9.485 + 7.117 + 10.226 + 9.444 = $36.3 Mil.
Total Current Assets was $35.0 Mil.
Total Assets was $264.0 Mil.
Property, Plant and Equipment(Net PPE) was $20.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.4 Mil.
Selling, General & Admin. Expense(SGA) was $9.0 Mil.
Total Current Liabilities was $14.3 Mil.
Long-Term Debt was $97.1 Mil.
Net Income was 3.021 + 0.683 + 3.581 + 3.187 = $10.5 Mil.
Non Operating Income was -0.337 + 0.024 + -0.017 + 0.024 = $-0.3 Mil.
Cash Flow from Operations was 2.754 + 4.214 + 5.866 + 6.634 = $19.5 Mil.
Accounts Receivable was $17.7 Mil.
Revenue was 26.856 + 24.812 + 27.437 + 24.714 = $103.8 Mil.
Gross Profit was 10.082 + 8.109 + 10.789 + 8.974 = $38.0 Mil.
Total Current Assets was $36.3 Mil.
Total Assets was $261.0 Mil.
Property, Plant and Equipment(Net PPE) was $18.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.2 Mil.
Selling, General & Admin. Expense(SGA) was $8.3 Mil.
Total Current Liabilities was $14.3 Mil.
Long-Term Debt was $106.8 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)
=(16.571 / 103.333) / (17.732 / 103.819)
=0.16036503 / 0.17079725
=0.9389

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)
=(7.117 / 103.819) / (9.485 / 103.333)
=0.36557855 / 0.35102049
=1.0415

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 - (35.004 + 20.924) / 263.951) / (1 - (36.314 + 18.856) / 260.967)
=0.78811219 / 0.78859396
=0.9994

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
=103.333 / 103.819
=0.9953

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))
=(2.16 / (2.16 + 18.856)) / (2.352 / (2.352 + 20.924))
=0.10277884 / 0.10104829
=1.0171

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)
=(9.019 / 103.333) / (8.348 / 103.819)
=0.08728093 / 0.08040917
=1.0855

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)
=((97.138 + 14.348) / 263.951) / ((106.75 + 14.309) / 260.967)
=0.42237385 / 0.46388624
=0.9105

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
=(10.472 - -0.306 - 19.468) / 263.951
=-0.0329

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 -2.66 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 0.93180.94971.10290.91540.94851.15530.91390.96910.99740.904
GMI 0.97871.00031.01761.02820.96341.02881.89370.96870.93531.0424
AQI 0.96940.98711.01761.03180.97980.99990.98780.99321.01510.9879
SGI 1.06751.01711.00721.06940.90710.79661.01270.99721.0261.0465
DEPI 1.16770.99431.37420.97970.9990.95651.01921.05781.08980.9974
SGAI 1.02131.0621.00391.02211.03280.99030.1791.02680.98181.0167
LVGI 0.9190.93851.01081.08111.14810.94040.91180.89060.91720.9119
TATA -0.036-0.0276-0.0304-0.03490.038-0.0305-0.0348-0.0424-0.0256-0.0272
M-score -2.63-2.64-2.47-2.66-2.51-2.63-2.07-2.69-2.57-2.61

Beasley Broadcast Group Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.97010.98531.03330.99741.04630.98670.93840.9040.91430.9389
GMI 1.25250.97330.95750.93530.94391.00191.01491.04241.05741.0415
AQI 0.99450.99461.02361.01511.0031.0070.9910.98791.00030.9994
SGI 0.98760.97460.98431.0261.03891.06791.07241.04651.02510.9953
DEPI 1.03741.06981.08811.08931.07391.03061.03360.99741.04011.0171
SGAI 0.48621.03130.990.98170.9780.98621.01621.0171.0531.0855
LVGI 0.88970.88790.90030.91720.92340.92660.91820.91190.90540.9105
TATA -0.0441-0.0351-0.0274-0.0256-0.0189-0.02-0.0235-0.0272-0.035-0.0329
M-score -2.47-2.66-2.56-2.57-2.48-2.49-2.55-2.61-2.64-2.66
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