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Bio-Reference Laboratories Inc (NAS:BRLI)
Beneish M-Score
-2.00 (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.

Bio-Reference Laboratories Inc has a M-score of -2.14 signals that the company is a manipulator.

BRLI' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -0.88
Current: -2

-3.23
-0.88

During the past 13 years, the highest Beneish M-Score of Bio-Reference Laboratories Inc was -0.88. The lowest was -3.23. And the median was -2.12.


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 Bio-Reference Laboratories 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 * 1.0555+0.528 * 0.9767+0.404 * 0.8766+0.892 * 1.1693+0.115 * 0.8393
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0035+4.679 * 0.043-0.327 * 0.9314
=-2.14

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $268.7 Mil.
Revenue was 208.833 + 227.594 + 222.053 + 201.366 = $859.8 Mil.
Gross Profit was 89.755 + 106.853 + 102.443 + 88.549 = $387.6 Mil.
Total Current Assets was $361.3 Mil.
Total Assets was $488.1 Mil.
Property, Plant and Equipment(Net PPE) was $65.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.0 Mil.
Selling, General & Admin. Expense(SGA) was $217.6 Mil.
Total Current Liabilities was $147.6 Mil.
Long-Term Debt was $14.8 Mil.
Net Income was 6.633 + 18.281 + 15.25 + 10.273 = $50.4 Mil.
Non Operating Income was 0.114 + -0.087 + 0.09 + -0.056 = $0.1 Mil.
Cash Flow from Operations was 10.057 + 9.07 + 7.693 + 2.564 = $29.4 Mil.
Accounts Receivable was $217.7 Mil.
Revenue was 181.27 + 192.218 + 185.427 + 176.452 = $735.4 Mil.
Gross Profit was 72.154 + 85.281 + 85.66 + 80.676 = $323.8 Mil.
Total Current Assets was $299.4 Mil.
Total Assets was $427.6 Mil.
Property, Plant and Equipment(Net PPE) was $67.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.0 Mil.
Selling, General & Admin. Expense(SGA) was $185.5 Mil.
Total Current Liabilities was $136.3 Mil.
Long-Term Debt was $16.4 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)
=(268.72 / 859.846) / (217.741 / 735.367)
=0.31252108 / 0.29609841
=1.0555

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)
=(106.853 / 735.367) / (89.755 / 859.846)
=0.44028492 / 0.4507784
=0.9767

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 - (361.348 + 65.642) / 488.143) / (1 - (299.408 + 67.113) / 427.636)
=0.12527681 / 0.1429136
=0.8766

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
=859.846 / 735.367
=1.1693

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))
=(20.981 / (20.981 + 67.113)) / (26.008 / (26.008 + 65.642))
=0.23816605 / 0.28377523
=0.8393

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)
=(217.608 / 859.846) / (185.452 / 735.367)
=0.25307788 / 0.25218972
=1.0035

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)
=((14.769 + 147.556) / 488.143) / ((16.38 + 136.295) / 427.636)
=0.33253575 / 0.35702092
=0.9314

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
=(50.437 - 0.061 - 29.384) / 488.143
=0.043

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.

Bio-Reference Laboratories Inc has a M-score of -2.14 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.

Bio-Reference Laboratories Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
DSRI 1.07771.08290.97870.90630.93010.97370.94010.94131.15571.0974
GMI 1.01580.97790.99561.03210.99011.00211.01691.07640.99881.0142
AQI 0.8911.32260.83630.98360.90850.95680.82211.06771.16650.8749
SGI 1.20351.17841.29671.20221.20451.2631.21971.09961.16461.1635
DEPI 0.86250.89431.18940.98810.98081.07150.94851.03171.07420.841
SGAI 1.50470.98550.98510.97770.61961.02190.96621.06770.98381.0117
LVGI 0.96261.03341.0410.90860.90991.00970.88550.82881.28470.9505
TATA 0.06610.06080.0661-0.0081-0.02090.0532-0.0044-0.03390.06540.0632
M-score -2.04-1.86-1.98-2.38-2.41-2.04-2.39-2.49-1.90-2.00

Bio-Reference Laboratories Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 0.94130.98771.0661.13981.15571.16891.15421.13141.09741.0555
GMI 1.07641.05461.03071.01210.99881.02521.04121.03911.01420.9767
AQI 1.06771.28541.03180.96961.16651.00330.99691.07620.87490.8766
SGI 1.09961.10581.12241.14041.16461.15491.14891.16061.16351.1693
DEPI 1.03170.97530.97891.00671.07421.05280.98060.90580.8410.8393
SGAI 1.06771.04631.00660.98260.98381.00531.02381.03721.01171.0035
LVGI 0.82880.86690.95481.10481.28471.25481.22331.13810.95050.9314
TATA -0.0339-0.01780.01070.03550.06350.07330.07280.06620.06320.043
M-score -2.49-2.30-2.22-2.10-1.91-1.91-1.92-1.92-2.00-2.14
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