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Ballantyne Strong Inc (AMEX:BTN)
Beneish M-Score
-3.74 (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 -3.74 suggests that the company is not a manipulator.

BTN' s 10-Year Beneish M-Score Range
Min: -4.67   Max: -0.95
Current: -3.74

-4.67
-0.95

During the past 13 years, the highest Beneish M-Score of Ballantyne Strong Inc was -0.95. 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 * 0.9245+0.528 * 0.9239+0.404 * 0.7881+0.892 * 0.9747+0.115 * 0.6709
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0914+4.679 * -0.1949-0.327 * 1.232
=-3.74

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $13.32 Mil.
Revenue was 19.723 + 22.47 + 28.374 + 22.664 = $93.23 Mil.
Gross Profit was 3.676 + 4.261 + 5.64 + 4.057 = $17.63 Mil.
Total Current Assets was $54.82 Mil.
Total Assets was $74.00 Mil.
Property, Plant and Equipment(Net PPE) was $13.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.38 Mil.
Selling, General & Admin. Expense(SGA) was $21.14 Mil.
Total Current Liabilities was $17.94 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.919 + -10.164 + 0.318 + -0.109 = $-12.87 Mil.
Non Operating Income was 0.029 + 0.645 + 0.243 + 0.255 = $1.17 Mil.
Cash Flow from Operations was 0.787 + 2.126 + -0.377 + -2.155 = $0.38 Mil.
Accounts Receivable was $14.79 Mil.
Revenue was 22.027 + 22.021 + 32.745 + 18.855 = $95.65 Mil.
Gross Profit was 4.247 + 4.216 + 4.914 + 3.338 = $16.72 Mil.
Total Current Assets was $65.16 Mil.
Total Assets was $88.70 Mil.
Property, Plant and Equipment(Net PPE) was $14.37 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.64 Mil.
Selling, General & Admin. Expense(SGA) was $19.87 Mil.
Total Current Liabilities was $17.46 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)
=(13.323 / 93.231) / (14.785 / 95.648)
=0.14290311 / 0.1545772
=0.9245

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)
=(4.261 / 95.648) / (3.676 / 93.231)
=0.17475535 / 0.1891431
=0.9239

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 - (54.816 + 13.151) / 74.004) / (1 - (65.155 + 14.366) / 88.703)
=0.08157667 / 0.10351397
=0.7881

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
=93.231 / 95.648
=0.9747

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))
=(1.643 / (1.643 + 14.366)) / (2.375 / (2.375 + 13.151))
=0.10262977 / 0.15296921
=0.6709

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)
=(21.136 / 93.231) / (19.868 / 95.648)
=0.22670571 / 0.20771997
=1.0914

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 + 17.944) / 74.004) / ((0 + 17.458) / 88.703)
=0.24247338 / 0.19681409
=1.232

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
=(-12.874 - 1.172 - 0.381) / 74.004
=-0.1949

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 -3.74 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

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 -0.0256-0.04120.055-0.13740.0110.0475-0.08450.0599-0.09270.0332
M-score -2.37-2.54-1.63-2.88-2.44-1.40-2.05-2.22-2.77-2.26

Ballantyne Strong Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.94270.7170.78471.24731.27761.50631.34091.10160.93820.9245
GMI 1.17451.03080.79440.82190.7550.81160.93940.85130.91810.9239
AQI 0.77711.07911.5312.074422.0921.43641.41850.88370.7881
SGI 0.77670.63380.60580.61280.64190.73360.90440.91770.97470.9747
DEPI 7.73353.12541.555900.30030.60630.78290.76630.78070.6709
SGAI 1.3111.38281.39591.71541.90321.88651.68611.30051.09161.0914
LVGI 0.65840.56910.61590.89850.83351.00831.17430.8991.0281.232
TATA 0.0061-0.0868-0.0834-0.0926-0.064-0.0439-0.02330.0332-0.1537-0.1949
M-score -1.87-3.11-3.19-2.90-2.75-2.32-2.42-2.26-3.42-3.74
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