Switch to:
Bio-Reference Laboratories Inc (NAS:BRLI)
Beneish M-Score
-1.49 (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 -1.49 signals that the company is a manipulator.

BRLI' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -0.88
Current: -1.49

-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 * 1.0974+0.528 * 1.0142+0.404 * 1.8994+0.892 * 1.1635+0.115 * 1.0538
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3876+4.679 * 0.0768-0.327 * 0.7522
=-1.49

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $263.3 Mil.
Revenue was 227.594 + 222.053 + 201.366 + 181.27 = $832.3 Mil.
Gross Profit was 106.853 + 102.443 + 88.549 + 72.154 = $370.0 Mil.
Total Current Assets was $280.9 Mil.
Total Assets was $478.9 Mil.
Property, Plant and Equipment(Net PPE) was $66.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.7 Mil.
Selling, General & Admin. Expense(SGA) was $286.6 Mil.
Total Current Liabilities was $104.5 Mil.
Long-Term Debt was $22.0 Mil.
Net Income was 18.281 + 15.25 + 10.273 + 2.954 = $46.8 Mil.
Non Operating Income was 0.68 + 0.513 + 0.641 + 0.625 = $2.5 Mil.
Cash Flow from Operations was 0 + 7.693 + 2.564 + -2.752 = $7.5 Mil.
Accounts Receivable was $206.3 Mil.
Revenue was 192.218 + 185.427 + 176.452 + 161.256 = $715.4 Mil.
Gross Profit was 85.281 + 85.66 + 80.676 + 70.922 = $322.5 Mil.
Total Current Assets was $294.9 Mil.
Total Assets was $421.5 Mil.
Property, Plant and Equipment(Net PPE) was $65.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $19.7 Mil.
Selling, General & Admin. Expense(SGA) was $177.5 Mil.
Total Current Liabilities was $133.8 Mil.
Long-Term Debt was $14.4 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)
=(263.346 / 832.283) / (206.261 / 715.353)
=0.31641401 / 0.28833457
=1.0974

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)
=(102.443 / 715.353) / (106.853 / 832.283)
=0.45088089 / 0.44455912
=1.0142

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 - (280.853 + 66.388) / 478.863) / (1 - (294.878 + 65.649) / 421.528)
=0.27486358 / 0.14471399
=1.8994

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
=832.283 / 715.353
=1.1635

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))
=(19.739 / (19.739 + 65.649)) / (18.655 / (18.655 + 66.388))
=0.23116831 / 0.21935962
=1.0538

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)
=(286.574 / 832.283) / (177.507 / 715.353)
=0.34432278 / 0.24813903
=1.3876

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)
=((22.049 + 104.546) / 478.863) / ((14.382 + 133.762) / 421.528)
=0.2643658 / 0.35144522
=0.7522

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
=(46.758 - 2.459 - 7.505) / 478.863
=0.0768

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 -1.49 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 1.07771.08290.97870.90630.93010.97370.94010.94131.1557
GMI 1.01580.97790.99561.03210.99011.00211.01691.07640.9988
AQI 0.8911.32260.83630.98360.90850.95680.82211.06771.1665
SGI 1.20351.17841.29671.20221.20451.2631.21971.09961.1646
DEPI 0.86250.89431.18940.98810.98081.07150.94851.03171.0742
SGAI 1.50470.98550.98510.97770.61961.02190.96621.06770.9838
LVGI 0.96261.03341.0410.90860.90991.00970.88550.82881.2847
TATA 0.06610.06080.0661-0.0081-0.02090.0532-0.0044-0.03390.0654
M-score -2.04-1.86-1.98-2.38-2.41-2.04-2.39-2.49-1.90

Bio-Reference Laboratories Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.87990.94130.98771.0661.13981.15571.16891.15421.13141.0974
GMI 1.05431.07641.05461.03071.01210.99881.02521.04121.03911.0142
AQI 1.09331.06771.28541.03180.96961.16652.10542.07372.2071.8994
SGI 1.12761.09961.10581.12241.14041.16461.15491.14891.16061.1635
DEPI 1.01081.03170.97530.97891.00671.07421.05280.98060.90581.0538
SGAI 1.04831.06771.04631.00660.98260.98381.09581.21181.32171.3876
LVGI 0.79640.82880.86690.95481.10481.28470.9590.91690.89190.7522
TATA -0.0539-0.0339-0.01780.01070.03550.06350.07180.06980.06240.0768
M-score -2.60-2.49-2.30-2.22-2.10-1.91-1.39-1.43-1.45-1.49
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK