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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-3.42 (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.

Ballantyne Strong Inc has a M-score of -3.42 suggests that the company is not a manipulator.

BTN' s 10-Year Beneish M-Score Range
Min: -4.67   Max: -0.75
Current: -3.42

-4.67
-0.75

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -0.75. The lowest was -4.67. And the median was -2.49.


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 Ballantyne Strong 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 * 0.9382+0.528 * 0.9181+0.404 * 0.8837+0.892 * 0.9747+0.115 * 0.7807
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0916+4.679 * -0.1537-0.327 * 1.028
=-3.42

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $15.10 Mil.
Revenue was 22.47 + 28.374 + 22.664 + 22.027 = $95.54 Mil.
Gross Profit was 4.261 + 5.64 + 4.057 + 4.247 = $18.21 Mil.
Total Current Assets was $55.52 Mil.
Total Assets was $75.52 Mil.
Property, Plant and Equipment(Net PPE) was $13.76 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.06 Mil.
Selling, General & Admin. Expense(SGA) was $20.01 Mil.
Total Current Liabilities was $16.24 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -10.164 + 0.318 + -0.109 + 0.381 = $-9.57 Mil.
Non Operating Income was 0.645 + 0.243 + 0.255 + -0.123 = $1.02 Mil.
Cash Flow from Operations was 2.126 + -0.377 + -2.155 + 1.417 = $1.01 Mil.
Accounts Receivable was $16.51 Mil.
Revenue was 22.021 + 32.745 + 18.855 + 24.395 = $98.02 Mil.
Gross Profit was 4.216 + 4.914 + 3.338 + 4.68 = $17.15 Mil.
Total Current Assets was $66.21 Mil.
Total Assets was $88.71 Mil.
Property, Plant and Equipment(Net PPE) was $14.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.61 Mil.
Selling, General & Admin. Expense(SGA) was $18.81 Mil.
Total Current Liabilities was $18.56 Mil.
Long-Term Debt was $0.00 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)
=(15.099 / 95.535) / (16.511 / 98.016)
=0.15804679 / 0.16845209
=0.9382

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)
=(5.64 / 98.016) / (4.261 / 95.535)
=0.17495103 / 0.19055843
=0.9181

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 - (55.521 + 13.755) / 75.522) / (1 - (66.207 + 14.202) / 88.711)
=0.08270438 / 0.09358479
=0.8837

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
=95.535 / 98.016
=0.9747

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))
=(1.607 / (1.607 + 14.202)) / (2.059 / (2.059 + 13.755))
=0.10165096 / 0.13020109
=0.7807

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)
=(20.013 / 95.535) / (18.81 / 98.016)
=0.20948344 / 0.19190744
=1.0916

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)
=((0 + 16.244) / 75.522) / ((0 + 18.562) / 88.711)
=0.21508964 / 0.20924124
=1.028

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
=(-9.574 - 1.02 - 1.011) / 75.522
=-0.1537

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.

Ballantyne Strong Inc has a M-score of -3.42 suggests that the company will not 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.

Ballantyne Strong Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.15861.03421.0140.84311.16291.15140.96450.93551.24741.1015
GMI 0.99371.27131.18531.14480.78571.12531.10771.22590.82190.8513
AQI 0.88851.13192.53231.91880.220.48652.15360.64852.07441.4185
SGI 1.09590.92341.03531.06471.31621.88971.35280.91680.61280.9177
DEPI 0.91760.93210.50320.92121.23612.46440.84321.53411.10090.7663
SGAI 0.9991.03691.11051.32360.64020.61670.86251.15471.71551.3004
LVGI 0.81461.03221.28761.17291.31151.50720.95470.67540.89850.899
TATA -0.0256-0.04120.055-0.13740.0110.0457-0.08390.0582-0.09270.0332
M-score -2.37-2.54-1.63-2.88-2.44-1.41-2.05-2.22-2.77-2.26

Ballantyne Strong Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.94270.7170.78471.24731.27761.50631.34091.10160.9382
GMI 1.17451.03080.79440.82190.7550.81160.93940.85130.9181
AQI 0.77711.07911.5312.074422.0921.43641.41850.8837
SGI 0.77670.63380.60580.61280.64190.73360.90440.91770.9747
DEPI 00000.30030.60630.78290.76630.7807
SGAI 1.3111.38281.39591.71541.90321.88651.68611.30051.0916
LVGI 0.65840.56910.61590.89850.83351.00831.17430.8991.028
TATA 0.0061-0.0868-0.0834-0.0926-0.064-0.0439-0.02330.0332-0.1537
M-score -2.76-3.46-3.37-2.90-2.75-2.32-2.42-2.26-3.42
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