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Beasley Broadcast Group Inc (NAS:BBGI)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

BBGI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67   Max: -1.61
Current: -2.51

-3.67
-1.61

During the past 13 years, the highest Beneish M-Score of Beasley Broadcast Group Inc was -1.61. The lowest was -3.67. And the median was -2.56.


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 * 0.7221+0.528 * 1.0497+0.404 * 0.9908+0.892 * 1.326+0.115 * 0.9174
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.65+4.679 * -0.0352-0.327 * 0.9115
=-2.51

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $18.9 Mil.
Revenue was 27.777 + 27.455 + 28.407 + 26.264 = $109.9 Mil.
Gross Profit was 8.048 + 7.469 + 9.006 + 6.612 = $31.1 Mil.
Total Current Assets was $37.7 Mil.
Total Assets was $311.3 Mil.
Property, Plant and Equipment(Net PPE) was $27.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.5 Mil.
Selling, General & Admin. Expense(SGA) was $9.2 Mil.
Total Current Liabilities was $11.5 Mil.
Long-Term Debt was $82.0 Mil.
Net Income was 2.469 + 1.821 + 3.27 + -0.738 = $6.8 Mil.
Non Operating Income was 0.269 + -0.04 + -0.169 + 0.002 = $0.1 Mil.
Cash Flow from Operations was 2.757 + 6.088 + 4.454 + 4.433 = $17.7 Mil.
Accounts Receivable was $19.8 Mil.
Revenue was 27.024 + 24.251 + 18.562 + 13.047 = $82.9 Mil.
Gross Profit was 8.283 + 6.437 + 6.301 + 3.626 = $24.6 Mil.
Total Current Assets was $35.9 Mil.
Total Assets was $315.5 Mil.
Property, Plant and Equipment(Net PPE) was $27.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.3 Mil.
Selling, General & Admin. Expense(SGA) was $10.7 Mil.
Total Current Liabilities was $12.0 Mil.
Long-Term Debt was $92.0 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)
=(18.946 / 109.903) / (19.786 / 82.884)
=0.17238838 / 0.23871917
=0.7221

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)
=(24.647 / 82.884) / (31.135 / 109.903)
=0.29736741 / 0.28329527
=1.0497

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 - (37.725 + 27.336) / 311.316) / (1 - (35.911 + 27.697) / 315.492)
=0.79101299 / 0.79838475
=0.9908

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
=109.903 / 82.884
=1.326

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))
=(3.261 / (3.261 + 27.697)) / (3.546 / (3.546 + 27.336))
=0.10533626 / 0.11482417
=0.9174

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)
=(9.187 / 109.903) / (10.659 / 82.884)
=0.08359189 / 0.12860142
=0.65

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)
=((82.041 + 11.502) / 311.316) / ((92.025 + 11.976) / 315.492)
=0.30047604 / 0.32964703
=0.9115

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
=(6.822 - 0.062 - 17.732) / 311.316
=-0.0352

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 -2.51 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.08510.89460.98611.08040.99860.96910.99741.69050.98020.6235
GMI 1.01761.02820.96342.40360.81060.96870.93531.11991.07441.0919
AQI 1.01761.03180.97980.99990.98780.99321.01511.00370.99620.9936
SGI 1.00721.06940.90710.79661.01270.99721.0260.55961.04651.8047
DEPI 1.37420.97971.07980.88491.01921.05781.08980.84891.42230.671
SGAI 1.00391.02211.03280.17421.01811.02680.98181.90131.12840.5079
LVGI 1.01081.08111.16530.92650.91180.89060.91720.91190.77030.917
TATA -0.0304-0.0413-0.1981-0.0318-0.0348-0.0424-0.0256-0.02720.0725-0.0268
M-score -2.48-2.71-3.58-1.84-2.71-2.69-2.57-2.44-1.98-2.11

Beasley Broadcast Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.39091.73711.60941.40521.10030.80460.65050.62350.66660.7221
GMI 1.09521.111.13281.11981.11391.10761.10631.09191.06591.0497
AQI 1.00030.99941.00980.99621.01151.0130.99950.99360.98650.9908
SGI 0.67380.5380.59430.731.02091.4841.74191.80471.55931.326
DEPI 1.04011.01710.81941.42231.00670.95931.08110.6710.85170.9174
SGAI 1.60192.00831.77931.61771.18490.79640.68270.50780.54740.65
LVGI 0.90540.91050.90460.77030.77970.78050.79070.9170.91630.9115
TATA -0.035-0.0342-0.03620.07250.08150.07580.0733-0.0268-0.0379-0.0352
M-score -2.59-2.46-2.50-1.93-1.88-1.71-1.61-2.11-2.35-2.51
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