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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-2.32 (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 -2.33 suggests that the company is not a manipulator.

BTN' s 10-Year Beneish M-Score Range
Min: -4.28   Max: -0.95
Current: -2.32

-4.28
-0.95

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -0.95. The lowest was -4.28. And the median was -2.52.


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 * 1.3409+0.528 * 0.9394+0.404 * 1.4364+0.892 * 0.9044+0.115 * 1.5754
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6861+4.679 * -0.0233-0.327 * 1.1743
=-2.33

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $15.0 Mil.
Revenue was 22.664 + 22.027 + 22.021 + 32.745 = $99.5 Mil.
Gross Profit was 4.057 + 4.247 + 4.216 + 4.914 = $17.4 Mil.
Total Current Assets was $66.0 Mil.
Total Assets was $89.1 Mil.
Property, Plant and Equipment(Net PPE) was $14.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.9 Mil.
Selling, General & Admin. Expense(SGA) was $21.4 Mil.
Total Current Liabilities was $18.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -0.109 + 0.381 + -0.594 + -1.724 = $-2.0 Mil.
Non Operating Income was 0.255 + -0.123 + 0.304 + 0.156 = $0.6 Mil.
Cash Flow from Operations was -2.155 + 1.417 + -2.557 + 2.729 = $-0.6 Mil.
Accounts Receivable was $12.4 Mil.
Revenue was 18.855 + 24.395 + 27.621 + 39.097 = $110.0 Mil.
Gross Profit was 3.338 + 4.68 + 3.914 + 6.176 = $18.1 Mil.
Total Current Assets was $74.2 Mil.
Total Assets was $90.7 Mil.
Property, Plant and Equipment(Net PPE) was $10.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.3 Mil.
Selling, General & Admin. Expense(SGA) was $14.0 Mil.
Total Current Liabilities was $16.3 Mil.
Long-Term Debt was $0.0 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)
=(15.043 / 99.457) / (12.404 / 109.968)
=0.15125129 / 0.11279645
=1.3409

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)
=(4.247 / 109.968) / (4.057 / 99.457)
=0.16466608 / 0.17529183
=0.9394

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 - (66.04 + 14.079) / 89.091) / (1 - (74.177 + 10.149) / 90.684)
=0.10070602 / 0.0701116
=1.4364

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
=99.457 / 109.968
=0.9044

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))
=(2.29 / (2.29 + 10.149)) / (1.863 / (1.863 + 14.079))
=0.1840984 / 0.11686112
=1.5754

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)
=(21.403 / 99.457) / (14.035 / 109.968)
=0.21519853 / 0.12762804
=1.6861

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 + 18.84) / 89.091) / ((0 + 16.331) / 90.684)
=0.21146917 / 0.1800869
=1.1743

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
=(-2.046 - 0.592 - -0.566) / 89.091
=-0.0233

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 -2.33 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.70041.15861.03421.0140.84311.16291.15140.96450.93551.2474
GMI 0.8370.99371.27131.18531.14480.78571.12531.10771.22590.8219
AQI 0.86840.88851.13192.53231.91880.220.48652.15360.64852.0744
SGI 1.31291.09590.92341.03531.06471.31621.88971.35280.91680.6128
DEPI 1.07460.91760.93210.50320.92121.23612.46440.84321.53411.1009
SGAI 0.77090.9991.03691.11051.32360.64020.61670.86251.15471.7155
LVGI 0.77210.81461.03221.28761.17291.31151.50720.95470.67540.8985
TATA -0.0201-0.0256-0.04120.055-0.1310.0110.0475-0.08450.0599-0.0927
M-score -2.59-2.37-2.54-1.63-2.85-2.44-1.40-2.05-2.22-2.77

Ballantyne Strong Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.94850.48030.93550.94270.7170.78471.24731.27761.50631.3409
GMI 1.26451.3251.22591.17451.03080.79440.82190.7550.81160.9394
AQI 1.39350.82190.64850.77711.07911.5312.074422.0921.4364
SGI 1.39251.01850.91680.77670.63380.60580.61280.64190.73360.9044
DEPI 0.98482.03261.53411.20860.64190.29371.10091.28021.55491.5754
SGAI 0.8331.11191.15471.3111.38281.39591.71541.90321.88651.6861
LVGI 1.04430.6640.67540.65840.56910.61590.89850.83351.00831.1743
TATA -0.0584-0.07040.05990.0234-0.0684-0.0815-0.0926-0.064-0.0439-0.0233
M-score -2.14-2.96-2.22-2.54-3.30-3.33-2.77-2.64-2.21-2.33
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