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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-2.14 (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 -2.14 signals that the company is a manipulator.

BTN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87   Max: -0.68
Current: -2.14

-4.87
-0.68

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -0.68. The lowest was -4.87. 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 * 1.0878+0.528 * 0.8124+0.404 * 2.4471+0.892 * 1.0044+0.115 * 0.9352
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9453+4.679 * -0.0587-0.327 * 0.8624
=-2.14

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $14.56 Mil.
Revenue was 20.558 + 20.54 + 27.13 + 23.512 = $91.74 Mil.
Gross Profit was 6.149 + 5.771 + 5.689 + 3.968 = $21.58 Mil.
Total Current Assets was $39.91 Mil.
Total Assets was $64.13 Mil.
Property, Plant and Equipment(Net PPE) was $11.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.21 Mil.
Selling, General & Admin. Expense(SGA) was $19.81 Mil.
Total Current Liabilities was $13.41 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.833 + -0.613 + -1.183 + -3.201 = $-4.16 Mil.
Non Operating Income was 0.444 + -1.229 + 0.318 + -0.832 = $-1.30 Mil.
Cash Flow from Operations was -2.603 + -1.565 + 3.388 + 1.681 = $0.90 Mil.
Accounts Receivable was $13.32 Mil.
Revenue was 17.831 + 22.47 + 28.374 + 22.664 = $91.34 Mil.
Gross Profit was 3.495 + 4.261 + 5.64 + 4.057 = $17.45 Mil.
Total Current Assets was $54.82 Mil.
Total Assets was $74.00 Mil.
Property, Plant and Equipment(Net PPE) was $13.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.36 Mil.
Selling, General & Admin. Expense(SGA) was $20.86 Mil.
Total Current Liabilities was $17.94 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)
=(14.556 / 91.74) / (13.323 / 91.339)
=0.15866579 / 0.14586321
=1.0878

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)
=(17.453 / 91.339) / (21.577 / 91.74)
=0.19107939 / 0.2351973
=0.8124

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 - (39.913 + 11.414) / 64.129) / (1 - (54.816 + 13.151) / 74.004)
=0.19962887 / 0.08157667
=2.4471

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
=91.74 / 91.339
=1.0044

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))
=(2.356 / (2.356 + 13.151)) / (2.214 / (2.214 + 11.414))
=0.15193139 / 0.16245964
=0.9352

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)
=(19.807 / 91.74) / (20.861 / 91.339)
=0.21590364 / 0.22839094
=0.9453

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 + 13.41) / 64.129) / ((0 + 17.944) / 74.004)
=0.20910976 / 0.24247338
=0.8624

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
=(-4.164 - -1.299 - 0.901) / 64.129
=-0.0587

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 -2.14 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.

Ballantyne Strong Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.03421.0140.84311.16291.15140.96450.93551.24741.10150.5741
GMI 1.27131.18531.14480.78571.12531.10771.22590.82190.85131.0081
AQI 1.13192.53231.91880.220.48652.15360.64852.07441.780.8512
SGI 0.92341.03531.06471.31621.88971.35280.91680.61280.91770.9763
DEPI 0.93210.50320.92121.23612.46440.84321.53411.10090.76630.7345
SGAI 1.03691.11051.32360.64020.61670.86251.15471.71551.30041.1341
LVGI 1.03221.28761.17291.31151.50720.95470.67540.89850.90621.1939
TATA -0.06550.0444-0.13740.0110.0461-0.08490.0582-0.09270.0335-0.383
M-score -2.65-1.68-2.88-2.44-1.40-2.05-2.22-2.77-2.11-4.86

Ballantyne Strong Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.27761.50631.34091.10160.93820.94360.9790.5860.77171.0878
GMI 0.7550.81160.93940.85130.91810.91460.93060.99750.89640.8124
AQI 22.0921.43641.780.88370.78810.48460.85121.65642.4471
SGI 0.64190.73360.90440.91770.97470.95490.92690.95640.93171.0044
DEPI 0.30030.60630.78290.76630.78070.67550.7830.73450.7690.9352
SGAI 1.90321.88651.68611.30051.09161.09951.06721.14311.11820.9453
LVGI 0.83351.00831.17430.90621.0281.2321.20361.19391.11910.8624
TATA -0.064-0.0439-0.02330.0335-0.1537-0.1937-0.2897-0.3816-0.1571-0.0587
M-score -2.75-2.32-2.42-2.11-3.42-3.74-4.27-4.87-3.36-2.14
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