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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

BTN' s 10-Year Beneish M-Score Range
Min: -4.41   Max: -1.15
Current: -2.74

-4.41
-1.15

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -1.15. The lowest was -4.41. And the median was -2.45.


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 * 1.2834+0.528 * 0.8219+0.404 * 2.0744+0.892 * 0.6128+0.115 * 1.1009
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7154+4.679 * -0.0926-0.327 * 0.8985
=-2.74

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $22.3 Mil.
Revenue was 32.745 + 18.855 + 24.395 + 27.621 = $103.6 Mil.
Gross Profit was 4.914 + 3.338 + 4.68 + 3.914 = $16.8 Mil.
Total Current Assets was $72.1 Mil.
Total Assets was $95.4 Mil.
Property, Plant and Equipment(Net PPE) was $14.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.5 Mil.
Selling, General & Admin. Expense(SGA) was $16.7 Mil.
Total Current Liabilities was $23.4 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -1.724 + 0.046 + 1.277 + 0.565 = $0.2 Mil.
Non Operating Income was 0.156 + -0.031 + 0.235 + 0.142 = $0.5 Mil.
Cash Flow from Operations was 2.729 + 0.104 + 3.742 + 1.929 = $8.5 Mil.
Accounts Receivable was $28.3 Mil.
Revenue was 39.097 + 39.26 + 46.708 + 44.019 = $169.1 Mil.
Gross Profit was 6.176 + 3.721 + 6.358 + 6.339 = $22.6 Mil.
Total Current Assets was $84.1 Mil.
Total Assets was $99.5 Mil.
Property, Plant and Equipment(Net PPE) was $11.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.3 Mil.
Selling, General & Admin. Expense(SGA) was $15.9 Mil.
Total Current Liabilities was $27.2 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)
=(22.254 / 103.616) / (28.296 / 169.084)
=0.21477378 / 0.16734877
=1.2834

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)
=(3.338 / 169.084) / (4.914 / 103.616)
=0.13362589 / 0.16258107
=0.8219

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 - (72.103 + 14.721) / 95.444) / (1 - (84.107 + 11.105) / 99.546)
=0.09031474 / 0.04353766
=2.0744

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
=103.616 / 169.084
=0.6128

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))
=(1.268 / (1.268 + 11.105)) / (1.511 / (1.511 + 14.721))
=0.10248121 / 0.09308773
=1.1009

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)
=(16.738 / 103.616) / (15.923 / 169.084)
=0.16153876 / 0.09417213
=1.7154

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 + 23.442) / 95.444) / ((0 + 27.21) / 99.546)
=0.24560999 / 0.27334097
=0.8985

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
=(0.164 - 0.502 - 8.504) / 95.444
=-0.0926

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 -2.74 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 0.70041.15861.03421.19070.83131.17690.98271.07080.90891.2835
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 -0.0201-0.0256-0.04120.055-0.13740.0110.0457-0.08390.0582-0.0927
M-score -2.59-2.37-2.54-1.47-2.89-2.42-1.56-1.95-2.25-2.74

Ballantyne Strong Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.43191.07080.9420.98220.47830.90890.86330.6710.77661.2834
GMI 1.0651.10771.19531.26451.3251.22591.17451.03080.79440.8219
AQI 1.50152.15361.60241.39350.82190.64850.77711.07911.5312.0744
SGI 1.62221.35281.37591.39251.01850.91680.77670.63380.60580.6128
DEPI 3.59591.13140.74110.56850.42191.14331.10961.10360.95091.1009
SGAI 0.76130.86250.78550.8331.11191.15471.3111.38281.39591.7154
LVGI 1.06960.95471.13761.04430.6640.67540.65840.56910.61590.8985
TATA 0.0324-0.0839-0.1542-0.0435-0.06970.05820.0061-0.0868-0.0834-0.0926
M-score -0.82-1.92-2.61-2.09-3.15-2.29-2.70-3.38-3.27-2.74
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