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Bio-Reference Laboratories Inc (NAS:BRLI)
Beneish M-Score
-1.42 (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 -1.42 signals that the company is a manipulator.

BRLI' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -0.77
Current: -1.42

-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 -2.21.


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 * 1.1966+0.528 * 1.0856+0.404 * 2.0737+0.892 * 1.1082+0.115 * 0.9806
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2563+4.679 * 0.0698-0.327 * 0.9169
=-1.42

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
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 $258.4 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 $228.0 Mil.
Total Current Liabilities was $101.9 Mil.
Long-Term Debt was $22.8 Mil.
Net Income was 10.273 + 2.954 + 11.121 + 14.701 = $39.0 Mil.
Non Operating Income was 0.641 + 0.625 + 0.56 + 1.046 = $2.9 Mil.
Cash Flow from Operations was 2.564 + -2.752 + 0.687 + 4.143 = $4.6 Mil.
Accounts Receivable was $176.4 Mil.
Revenue was 176.452 + 161.256 + 176.052 + 172.302 = $686.1 Mil.
Gross Profit was 80.676 + 70.922 + 87.245 + 86.049 = $324.9 Mil.
Total Current Assets was $249.1 Mil.
Total Assets was $351.4 Mil.
Property, Plant and Equipment(Net PPE) was $55.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.9 Mil.
Selling, General & Admin. Expense(SGA) was $163.8 Mil.
Total Current Liabilities was $92.0 Mil.
Long-Term Debt was $13.8 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)
=(233.968 / 760.281) / (176.438 / 686.062)
=0.30773885 / 0.25717501
=1.1966

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)
=(72.154 / 686.062) / (88.549 / 760.281)
=0.4735607 / 0.4362124
=1.0856

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 - (258.448 + 67.518) / 451.617) / (1 - (249.113 + 55.134) / 351.393)
=0.27822469 / 0.13416887
=2.0737

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
=760.281 / 686.062
=1.1082

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))
=(17.874 / (17.874 + 55.134)) / (22.465 / (22.465 + 67.518))
=0.24482249 / 0.24965827
=0.9806

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)
=(227.998 / 760.281) / (163.765 / 686.062)
=0.29988649 / 0.23870292
=1.2563

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)
=((22.789 + 101.876) / 451.617) / ((13.769 + 92.025) / 351.393)
=0.27604142 / 0.30107031
=0.9169

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
=(39.049 - 2.872 - 4.642) / 451.617
=0.0698

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 -1.42 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

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
DSRI 0.99621.07771.08290.97870.90630.93010.97370.94010.87391.2449
GMI 0.97041.01580.97790.99561.03210.99011.00211.01690.98981.0861
AQI 0.91780.8911.32260.83630.98360.90850.95680.82211.06771.1665
SGI 1.2491.20351.17841.29671.20221.20451.2631.21971.18441.0811
DEPI 1.21420.86250.89431.18940.98810.98081.07150.94851.03171.0742
SGAI 0.6881.50470.98550.98510.97770.61961.02190.96620.99121.0597
LVGI 0.98970.96261.03341.0410.90860.90991.00970.88550.82881.2847
TATA 0.2910.06610.06080.0661-0.0081-0.02090.0532-0.0044-0.03390.0654
M-score -0.87-2.04-1.86-1.98-2.38-2.41-2.04-2.39-2.51-1.86

Bio-Reference Laboratories Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.87890.83180.87390.95261.06841.18411.24491.23551.19661.1521
GMI 0.99690.99060.98981.01041.03081.05441.08611.09241.08561.0615
AQI 1.0271.09331.06771.28541.03180.96961.16652.10542.07372.207
SGI 1.20681.19281.18441.14671.11991.09781.08111.09271.10821.1398
DEPI 0.98451.01081.03170.97530.97891.00671.07421.05280.98061.1608
SGAI 0.97460.99090.99121.0091.00891.02081.05971.15821.25631.3458
LVGI 0.86080.79640.82880.86690.95481.10481.28470.9590.91690.8919
TATA -0.0244-0.0539-0.0339-0.01780.01070.03550.06350.07180.06980.0789
M-score -2.46-2.61-2.51-2.32-2.22-2.08-1.87-1.36-1.42-1.33
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