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Bio-Reference Laboratories Inc (NAS:BRLI)
Beneish M-Score
-2.13 (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 -2.13 signals that the company is a manipulator.

BRLI' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -0.77
Current: -2.13

-3.23
-0.77

During the past 13 years, the highest Beneish M-Score of Bio-Reference Laboratories Inc was -0.77. The lowest was -3.23. And the median was -2.18.


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 * 1.0508+0.528 * 0.9671+0.404 * 0.891+0.892 * 1.1607+0.115 * 0.9256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0082+4.679 * 0.0452-0.327 * 0.9324
=-2.13

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $285.4 Mil.
Revenue was 223.986 + 208.833 + 227.594 + 222.053 = $882.5 Mil.
Gross Profit was 98.983 + 89.755 + 106.853 + 102.443 = $398.0 Mil.
Total Current Assets was $380.0 Mil.
Total Assets was $512.7 Mil.
Property, Plant and Equipment(Net PPE) was $71.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $26.5 Mil.
Selling, General & Admin. Expense(SGA) was $225.4 Mil.
Total Current Liabilities was $162.3 Mil.
Long-Term Debt was $13.7 Mil.
Net Income was 10.461 + 6.633 + 18.281 + 15.25 = $50.6 Mil.
Non Operating Income was -0.002 + 0.114 + -0.087 + 0.09 = $0.1 Mil.
Cash Flow from Operations was 0.5 + 10.057 + 9.07 + 7.693 = $27.3 Mil.
Accounts Receivable was $234.0 Mil.
Revenue was 201.366 + 181.27 + 192.218 + 185.427 = $760.3 Mil.
Gross Profit was 88.549 + 72.154 + 85.281 + 85.66 = $331.6 Mil.
Total Current Assets was $323.7 Mil.
Total Assets was $451.6 Mil.
Property, Plant and Equipment(Net PPE) was $67.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $22.5 Mil.
Selling, General & Admin. Expense(SGA) was $192.6 Mil.
Total Current Liabilities was $150.0 Mil.
Long-Term Debt was $16.3 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)
=(285.361 / 882.466) / (233.968 / 760.281)
=0.3233677 / 0.30773885
=1.0508

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)
=(89.755 / 760.281) / (98.983 / 882.466)
=0.4362124 / 0.45104741
=0.9671

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 - (379.97 + 71.643) / 512.718) / (1 - (323.691 + 67.518) / 451.617)
=0.11917857 / 0.13375936
=0.891

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
=882.466 / 760.281
=1.1607

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))
=(22.465 / (22.465 + 67.518)) / (26.461 / (26.461 + 71.643))
=0.24965827 / 0.26972397
=0.9256

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)
=(225.413 / 882.466) / (192.632 / 760.281)
=0.25543534 / 0.25336948
=1.0082

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)
=((13.734 + 162.326) / 512.718) / ((16.349 + 149.979) / 451.617)
=0.34338564 / 0.36829437
=0.9324

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
=(50.625 - 0.115 - 27.32) / 512.718
=0.0452

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 -2.13 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

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 0.98771.0661.13981.15571.16891.15421.13141.09741.05551.0508
GMI 1.05461.03071.01210.99881.02521.04121.03911.01420.97670.9671
AQI 1.28541.03180.96961.16651.00330.99691.07620.87490.87660.891
SGI 1.10581.12241.14041.16461.15491.14891.16061.16351.16931.1607
DEPI 0.97530.97891.00671.07421.05280.98060.90580.8410.83930.9256
SGAI 1.04631.00660.98260.98381.00531.02381.03721.01171.00351.0082
LVGI 0.86690.95481.10481.28471.25481.22331.13810.95050.93140.9324
TATA -0.01780.01070.03550.06350.07330.07280.06620.06320.0430.0452
M-score -2.30-2.22-2.10-1.91-1.91-1.92-1.92-2.00-2.14-2.13
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