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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-1.88 (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 -1.84 signals that the company is a manipulator.

BTN' s 10-Year Beneish M-Score Range
Min: -4.66   Max: -0.99
Current: -1.88

-4.66
-0.99

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -0.99. The lowest was -4.66. And the median was -2.46.


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 * 1.9316+0.528 * 0.8116+0.404 * 2.092+0.892 * 0.7336+0.115 * 1.3169
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8865+4.679 * -0.0439-0.327 * 1.0083
=-1.84

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $19.0 Mil.
Revenue was 22.027 + 22.021 + 32.745 + 18.855 = $95.6 Mil.
Gross Profit was 4.247 + 4.216 + 4.914 + 3.338 = $16.7 Mil.
Total Current Assets was $65.2 Mil.
Total Assets was $88.7 Mil.
Property, Plant and Equipment(Net PPE) was $14.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.0 Mil.
Selling, General & Admin. Expense(SGA) was $19.9 Mil.
Total Current Liabilities was $17.5 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was 0.381 + -0.594 + -1.724 + 0.046 = $-1.9 Mil.
Non Operating Income was -0.123 + 0.304 + 0.156 + -0.031 = $0.3 Mil.
Cash Flow from Operations was 1.417 + -2.557 + 2.729 + 0.104 = $1.7 Mil.
Accounts Receivable was $13.4 Mil.
Revenue was 24.395 + 27.621 + 39.097 + 39.26 = $130.4 Mil.
Gross Profit was 4.68 + 3.914 + 6.176 + 3.721 = $18.5 Mil.
Total Current Assets was $76.4 Mil.
Total Assets was $91.1 Mil.
Property, Plant and Equipment(Net PPE) was $10.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.9 Mil.
Selling, General & Admin. Expense(SGA) was $14.4 Mil.
Total Current Liabilities was $17.8 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)
=(18.96 / 95.648) / (13.379 / 130.373)
=0.19822683 / 0.10262094
=1.9316

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)
=(4.216 / 130.373) / (4.247 / 95.648)
=0.14183151 / 0.17475535
=0.8116

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 - (65.155 + 14.366) / 88.703) / (1 - (76.353 + 10.264) / 91.126)
=0.10351397 / 0.04948094
=2.092

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
=95.648 / 130.373
=0.7336

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))
=(1.949 / (1.949 + 10.264)) / (1.981 / (1.981 + 14.366))
=0.15958405 / 0.12118432
=1.3169

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)
=(19.868 / 95.648) / (14.355 / 130.373)
=0.20771997 / 0.11010715
=1.8865

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 + 17.458) / 88.703) / ((0 + 17.788) / 91.126)
=0.19681409 / 0.19520225
=1.0083

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
=(-1.891 - 0.306 - 1.693) / 88.703
=-0.0439

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 -1.84 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

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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.9420.98220.47830.90890.86330.6710.77661.28341.54421.9316
GMI 1.19531.26451.3251.22591.17451.03080.79440.82190.7550.8116
AQI 1.60241.39350.82190.64850.77711.07911.5312.074422.092
SGI 1.37591.39251.01850.91680.77670.63380.60580.61280.64190.7336
DEPI 0.74110.56850.42191.14330.90070.76040.65560.91841.08041.3169
SGAI 0.78550.8331.11191.15471.3111.38281.39591.71541.90321.8865
LVGI 1.13761.04430.6640.67540.65840.56910.61590.89850.83351.0083
TATA -0.1542-0.0435-0.06970.05820.0061-0.0868-0.0834-0.0926-0.064-0.0439
M-score -2.61-2.09-3.15-2.29-2.73-3.42-3.30-2.76-2.42-1.84
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