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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-1.59 (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 -1.59 signals that the company is a manipulator.

BBGI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67   Max: -1.59
Current: -1.59

-3.67
-1.59

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.59. The lowest was -3.67. 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 * 0.6505+0.528 * 1.1063+0.404 * 0.9995+0.892 * 1.7419+0.115 * 1.0811
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5999+4.679 * 0.0733-0.327 * 0.7907
=-1.59

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $18.54 Mil.
Revenue was 26.264 + 27.024 + 24.251 + 18.562 = $96.10 Mil.
Gross Profit was 6.612 + 8.283 + 6.437 + 6.301 = $27.63 Mil.
Total Current Assets was $34.08 Mil.
Total Assets was $310.13 Mil.
Property, Plant and Equipment(Net PPE) was $27.99 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.49 Mil.
Selling, General & Admin. Expense(SGA) was $9.46 Mil.
Total Current Liabilities was $10.82 Mil.
Long-Term Debt was $90.11 Mil.
Net Income was -0.738 + 2.532 + 1.298 + 33.836 = $36.93 Mil.
Non Operating Income was 0.002 + 0.019 + 0.472 + 0.024 = $0.52 Mil.
Cash Flow from Operations was 4.433 + 3.92 + 1.564 + 3.751 = $13.67 Mil.
Accounts Receivable was $16.36 Mil.
Revenue was 13.047 + 14.141 + 12.955 + 15.028 = $55.17 Mil.
Gross Profit was 3.626 + 5.08 + 3.348 + 5.496 = $17.55 Mil.
Total Current Assets was $34.78 Mil.
Total Assets was $263.72 Mil.
Property, Plant and Equipment(Net PPE) was $17.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.44 Mil.
Selling, General & Admin. Expense(SGA) was $9.06 Mil.
Total Current Liabilities was $12.69 Mil.
Long-Term Debt was $95.86 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)
=(18.542 / 96.101) / (16.363 / 55.171)
=0.19294284 / 0.29658698
=0.6505

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)
=(8.283 / 55.171) / (6.612 / 96.101)
=0.3181019 / 0.28754123
=1.1063

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 - (34.082 + 27.988) / 310.134) / (1 - (34.777 + 17.896) / 263.716)
=0.79986071 / 0.8002662
=0.9995

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
=96.101 / 55.171
=1.7419

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))
=(2.438 / (2.438 + 17.896)) / (3.491 / (3.491 + 27.988))
=0.11989771 / 0.11089933
=1.0811

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)
=(9.464 / 96.101) / (9.057 / 55.171)
=0.09847972 / 0.16416233
=0.5999

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)
=((90.108 + 10.824) / 310.134) / ((95.859 + 12.685) / 263.716)
=0.32544642 / 0.41159429
=0.7907

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
=(36.928 - 0.517 - 13.668) / 310.134
=0.0733

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 -1.59 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.98671.0621.17921.39091.73711.60941.40521.10030.80460.6505
GMI 1.00191.03011.07451.09521.111.13281.11981.11391.10761.1063
AQI 1.0070.9911.00371.00030.99941.00980.99681.01151.0130.9995
SGI 1.06790.94760.80230.67380.5380.59430.731.02091.4841.7419
DEPI 1.03061.03360.84891.04011.01710.81941.42231.00670.95931.0811
SGAI 0.98621.151.32661.60192.00831.77931.41741.04470.69870.5999
LVGI 0.92660.91820.91190.90540.91050.90460.77660.77970.78050.7907
TATA -0.02-0.0235-0.0272-0.035-0.0342-0.03620.07210.08150.07580.0733
M-score -2.49-2.56-2.62-2.59-2.46-2.50-1.90-1.86-1.69-1.59
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