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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-2.26 (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 -2.26 suggests that the company is not a manipulator.

BTN' s 10-Year Beneish M-Score Range
Min: -4.42   Max: -1.15
Current: -2.26

-4.42
-1.15

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -1.15. The lowest was -4.42. And the median was -2.48.


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 * 1.1016+0.528 * 0.8513+0.404 * 1.4185+0.892 * 0.9177+0.115 * 0.7663
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3005+4.679 * 0.0332-0.327 * 0.899
=-2.26

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $20.27 Mil.
Revenue was 28.374 + 22.664 + 22.027 + 22.021 = $95.09 Mil.
Gross Profit was 5.64 + 4.057 + 4.247 + 4.216 = $18.16 Mil.
Total Current Assets was $64.62 Mil.
Total Assets was $90.07 Mil.
Property, Plant and Equipment(Net PPE) was $13.91 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.92 Mil.
Selling, General & Admin. Expense(SGA) was $19.98 Mil.
Total Current Liabilities was $19.89 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.318 + -0.109 + 0.381 + -0.594 = $-0.00 Mil.
Non Operating Income was 0.243 + 0.255 + -0.123 + 0.304 = $0.68 Mil.
Cash Flow from Operations was -0.377 + -2.155 + 1.417 + -2.557 = $-3.67 Mil.
Accounts Receivable was $20.05 Mil.
Revenue was 32.745 + 18.855 + 24.395 + 27.621 = $103.62 Mil.
Gross Profit was 4.914 + 3.338 + 4.68 + 3.914 = $16.85 Mil.
Total Current Assets was $72.10 Mil.
Total Assets was $95.44 Mil.
Property, Plant and Equipment(Net PPE) was $14.72 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.51 Mil.
Selling, General & Admin. Expense(SGA) was $16.74 Mil.
Total Current Liabilities was $23.44 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)
=(20.266 / 95.086) / (20.047 / 103.616)
=0.21313337 / 0.19347398
=1.1016

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)
=(4.057 / 103.616) / (5.64 / 95.086)
=0.16258107 / 0.190985
=0.8513

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 - (64.617 + 13.914) / 90.07) / (1 - (72.103 + 14.721) / 95.444)
=0.12811147 / 0.09031474
=1.4185

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
=95.086 / 103.616
=0.9177

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))
=(1.511 / (1.511 + 14.721)) / (1.924 / (1.924 + 13.914))
=0.09308773 / 0.12147998
=0.7663

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)
=(19.976 / 95.086) / (16.738 / 103.616)
=0.2100835 / 0.16153876
=1.3005

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 + 19.887) / 90.07) / ((0 + 23.442) / 95.444)
=0.22079494 / 0.24560999
=0.899

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
=(-0.004 - 0.679 - -3.672) / 90.07
=0.0332

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 -2.26 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.48030.93550.94270.7170.78471.24731.27761.50631.34091.1016
GMI 1.3251.22591.17451.03080.79440.82190.7550.81160.93940.8513
AQI 0.82190.64850.77711.07911.5312.074422.0921.43641.4185
SGI 1.01850.91680.77670.63380.60580.61280.64190.73360.90440.9177
DEPI 0.3131.53411.20861.01870.77321.10091.28021.55491.57540.7663
SGAI 1.11191.15471.3111.38281.39591.71541.90321.88651.68611.3005
LVGI 0.6640.67540.65840.56910.61590.89850.83351.00831.17430.899
TATA -0.06970.05820.0061-0.0868-0.0834-0.0926-0.064-0.0439-0.02330.0332
M-score -3.16-2.22-2.62-3.35-3.28-2.77-2.64-2.21-2.33-2.26
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