BTH has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Beneish M-Score -0.86 higher than -2.22, which implies that it might have manipulated its financial results.
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.
During the past 13 years, the highest Beneish M-Score of Blyth Inc was -0.58. The lowest was -4.29. And the median was -2.65.
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 Blyth 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 * 1.0295||+||0.528 * 1.0241||+||0.404 * 1.5611||+||0.892 * 0.8462||+||0.115 * 0.7776|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0291||+||4.679 * 0.3267||-||0.327 * 1.0129|
|This Year (Mar15) TTM:||Last Year (Mar14) TTM:|
|Accounts Receivable was $12.5 Mil.|
Revenue was 103.726 + 176.796 + 90.752 + 157.793 = $529.1 Mil.
Gross Profit was 58.536 + 115.436 + 53.495 + 101.329 = $328.8 Mil.
Total Current Assets was $144.4 Mil.
Total Assets was $241.6 Mil.
Property, Plant and Equipment(Net PPE) was $64.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.1 Mil.
Selling, General & Admin. Expense(SGA) was $331.4 Mil.
Total Current Liabilities was $65.8 Mil.
Long-Term Debt was $38.9 Mil.
Net Income was -12.468 + -12.211 + 106.173 + -4.44 = $77.1 Mil.
Non Operating Income was -1.399 + -3.552 + -0.38 + -0.072 = $-5.4 Mil.
Cash Flow from Operations was -23.788 + 42.209 + -13.254 + -1.638 = $3.5 Mil.
|Accounts Receivable was $14.4 Mil.
Revenue was 118.239 + 198.238 + 97.029 + 211.731 = $625.2 Mil.
Gross Profit was 74.382 + 132.039 + 56.281 + 135.207 = $397.9 Mil.
Total Current Assets was $230.6 Mil.
Total Assets was $355.3 Mil.
Property, Plant and Equipment(Net PPE) was $93.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.9 Mil.
Selling, General & Admin. Expense(SGA) was $380.5 Mil.
Total Current Liabilities was $96.9 Mil.
Long-Term Debt was $55.1 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(12.545 / 529.067)||/||(14.4 / 625.237)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(115.436 / 625.237)||/||(58.536 / 529.067)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (144.377 + 64.087) / 241.556)||/||(1 - (230.578 + 93.498) / 355.251)|
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.
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))|
|=||(8.917 / (8.917 + 93.498))||/||(8.081 / (8.081 + 64.087))|
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)|
|=||(331.373 / 529.067)||/||(380.527 / 625.237)|
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)|
|=||((38.901 + 65.815) / 241.556)||/||((55.11 + 96.929) / 355.251)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(77.054 - -5.403||-||3.529)||/||241.556|
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.
Blyth Inc has a M-score of -0.86 signals that the company is likely to be a manipulator.
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
Blyth Inc Annual Data
Blyth Inc Quarterly Data