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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-4.27 (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 -4.27 suggests that the company is not a manipulator.

BTN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.67   Max: -0.75
Current: -4.27

-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 * 0.9593+0.528 * 0.9399+0.404 * 0.4846+0.892 * 0.9459+0.115 * 0.783
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0593+4.679 * -0.2911-0.327 * 1.2036
=-4.27

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $13.65 Mil.
Revenue was 23.512 + 19.723 + 22.47 + 28.374 = $94.08 Mil.
Gross Profit was 3.968 + 3.676 + 4.261 + 5.64 = $17.55 Mil.
Total Current Assets was $53.72 Mil.
Total Assets was $69.63 Mil.
Property, Plant and Equipment(Net PPE) was $12.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.20 Mil.
Selling, General & Admin. Expense(SGA) was $21.45 Mil.
Total Current Liabilities was $17.72 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -3.201 + -2.919 + -10.164 + 0.318 = $-15.97 Mil.
Non Operating Income was -0.832 + 0.029 + 0.645 + 0.243 = $0.09 Mil.
Cash Flow from Operations was 1.681 + 0.787 + 2.126 + -0.377 = $4.22 Mil.
Accounts Receivable was $15.04 Mil.
Revenue was 22.664 + 22.027 + 22.021 + 32.745 = $99.46 Mil.
Gross Profit was 4.057 + 4.247 + 4.216 + 4.914 = $17.43 Mil.
Total Current Assets was $66.04 Mil.
Total Assets was $89.09 Mil.
Property, Plant and Equipment(Net PPE) was $14.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.86 Mil.
Selling, General & Admin. Expense(SGA) was $21.40 Mil.
Total Current Liabilities was $18.84 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)
=(13.65 / 94.079) / (15.043 / 99.457)
=0.14509083 / 0.15125129
=0.9593

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)
=(3.676 / 99.457) / (3.968 / 94.079)
=0.17529183 / 0.1864922
=0.9399

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 - (53.716 + 12.517) / 69.631) / (1 - (66.04 + 14.079) / 89.091)
=0.0488001 / 0.10070602
=0.4846

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
=94.079 / 99.457
=0.9459

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))
=(1.863 / (1.863 + 14.079)) / (2.196 / (2.196 + 12.517))
=0.11686112 / 0.14925576
=0.783

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)
=(21.446 / 94.079) / (21.403 / 99.457)
=0.22795735 / 0.21519853
=1.0593

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 + 17.723) / 69.631) / ((0 + 18.84) / 89.091)
=0.25452744 / 0.21146917
=1.2036

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
=(-15.966 - 0.085 - 4.217) / 69.631
=-0.2911

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 -4.27 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.7170.78471.24731.27761.50631.34091.10160.93820.92450.9593
GMI 1.03080.79440.82190.7550.81160.93940.85130.91810.92390.9399
AQI 1.07911.5312.074422.0921.43641.41850.88370.78810.4846
SGI 0.63380.60580.61280.64190.73360.90440.91770.97470.97470.9459
DEPI 0000.30030.60630.78290.76630.78070.67090.783
SGAI 1.38281.39591.71541.90321.88651.68611.30051.09161.09141.0593
LVGI 0.56910.61590.89850.83351.00831.17430.8991.0281.2321.2036
TATA -0.0868-0.0834-0.0926-0.064-0.0439-0.02330.0332-0.1537-0.1949-0.2911
M-score -3.46-3.37-2.90-2.75-2.32-2.42-2.26-3.42-3.74-4.27
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