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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-235.95 (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 -1.96 signals that the company is a manipulator.

BBGI' s 10-Year Beneish M-Score Range
Min: -3.67   Max: -1.81
Current: -235.95

-3.67
-1.81

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.81. The lowest was -3.67. And the median was -2.63.


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 * 1.0097+0.528 * 1.0783+0.404 * 0.9968+0.892 * 1.0159+0.115 * 1.4223
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0184+4.679 * 0.0732-0.327 * 0.7766
=-1.96

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $17.64 Mil.
Revenue was 18.562 + 13.047 + 25.876 + 24.219 = $81.70 Mil.
Gross Profit was 6.301 + 3.626 + 9.485 + 7.117 = $26.53 Mil.
Total Current Assets was $35.54 Mil.
Total Assets was $315.97 Mil.
Property, Plant and Equipment(Net PPE) was $28.25 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.53 Mil.
Selling, General & Admin. Expense(SGA) was $8.92 Mil.
Total Current Liabilities was $14.03 Mil.
Long-Term Debt was $94.58 Mil.
Net Income was 33.836 + 2.459 + 3.021 + 0.683 = $40.00 Mil.
Non Operating Income was 0.024 + 0.254 + -0.337 + 0.024 = $-0.04 Mil.
Cash Flow from Operations was 3.751 + 6.195 + 2.754 + 4.214 = $16.91 Mil.
Accounts Receivable was $17.20 Mil.
Revenue was 15.028 + 13.727 + 26.856 + 24.812 = $80.42 Mil.
Gross Profit was 5.496 + 4.471 + 10.082 + 8.109 = $28.16 Mil.
Total Current Assets was $35.85 Mil.
Total Assets was $264.21 Mil.
Property, Plant and Equipment(Net PPE) was $16.81 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.22 Mil.
Selling, General & Admin. Expense(SGA) was $8.63 Mil.
Total Current Liabilities was $14.32 Mil.
Long-Term Debt was $102.63 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)
=(17.638 / 81.704) / (17.195 / 80.423)
=0.21587682 / 0.213807
=1.0097

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)
=(3.626 / 80.423) / (6.301 / 81.704)
=0.35012372 / 0.32469647
=1.0783

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 - (35.538 + 28.254) / 315.967) / (1 - (35.852 + 16.807) / 264.209)
=0.7981055 / 0.80069188
=0.9968

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
=81.704 / 80.423
=1.0159

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))
=(2.221 / (2.221 + 16.807)) / (2.526 / (2.526 + 28.254))
=0.11672272 / 0.08206628
=1.4223

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)
=(8.924 / 81.704) / (8.625 / 80.423)
=0.10922354 / 0.10724544
=1.0184

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)
=((94.581 + 14.027) / 315.967) / ((102.625 + 14.316) / 264.209)
=0.3437321 / 0.44260794
=0.7766

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
=(39.999 - -0.035 - 16.914) / 315.967
=0.0732

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 -1.96 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.03330.99741.04630.98671.0621.17921.19471.23051.13591.0097
GMI 0.95750.93530.94391.00191.03011.07451.09821.08491.0951.0783
AQI 1.02361.01511.0031.0070.9911.00371.00030.99941.00980.9968
SGI 0.98431.0261.03891.06790.94760.80230.78450.75950.84211.0159
DEPI 1.08811.08931.07391.03061.03360.84891.04011.01710.81941.4223
SGAI 0.990.98170.9780.98621.151.32661.37591.42251.25581.0184
LVGI 0.90030.91720.92340.92660.91820.91190.90540.91050.90460.7766
TATA -0.0274-0.0256-0.0189-0.02-0.0235-0.0272-0.035-0.0329-0.03490.0732
M-score -2.56-2.57-2.48-2.49-2.56-2.62-2.63-2.63-2.64-1.96
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