Switch to:
BioTime Inc (AMEX:BTX)
Beneish M-Score
-2.65 (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.

BioTime Inc has a M-score of -2.65 suggests that the company is not a manipulator.

BTX' s 10-Year Beneish M-Score Range
Min: -38.13   Max: 10000000
Current: -2.65

-38.13
10000000

During the past 13 years, the highest Beneish M-Score of BioTime Inc was 10000000.00. The lowest was -38.13. And the median was -3.55.


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 BioTime 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 * 0.9514+0.528 * 1.0325+0.404 * 0.696+0.892 * 1.1127+0.115 * 0.832
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0817+4.679 * -0.0034-0.327 * 1.2158
=-2.65

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $0.87 Mil.
Revenue was 1.264 + 1.878 + 1.191 + 1.107 = $5.44 Mil.
Gross Profit was 1 + 1.655 + 0.96 + 0.855 = $4.47 Mil.
Total Current Assets was $28.54 Mil.
Total Assets was $69.70 Mil.
Property, Plant and Equipment(Net PPE) was $2.87 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.36 Mil.
Selling, General & Admin. Expense(SGA) was $19.07 Mil.
Total Current Liabilities was $8.20 Mil.
Long-Term Debt was $0.02 Mil.
Net Income was -10.167 + -10.584 + -8.268 + -9.52 = $-38.54 Mil.
Non Operating Income was -0.239 + -0.54 + -0.119 + 0.165 = $-0.73 Mil.
Cash Flow from Operations was -9.069 + -9.11 + -8.609 + -10.778 = $-37.57 Mil.
Accounts Receivable was $0.82 Mil.
Revenue was 1.067 + 1.892 + 0.714 + 1.216 = $4.89 Mil.
Gross Profit was 0.935 + 1.67 + 0.507 + 1.036 = $4.15 Mil.
Total Current Assets was $9.25 Mil.
Total Assets was $57.95 Mil.
Property, Plant and Equipment(Net PPE) was $2.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.82 Mil.
Selling, General & Admin. Expense(SGA) was $15.84 Mil.
Total Current Liabilities was $5.62 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)
=(0.866 / 5.44) / (0.818 / 4.889)
=0.15919118 / 0.16731438
=0.9514

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)
=(1.655 / 4.889) / (1 / 5.44)
=0.84843526 / 0.82169118
=1.0325

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 - (28.544 + 2.865) / 69.703) / (1 - (9.247 + 2.959) / 57.95)
=0.54938812 / 0.78937015
=0.696

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
=5.44 / 4.889
=1.1127

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))
=(4.821 / (4.821 + 2.959)) / (8.363 / (8.363 + 2.865))
=0.61966581 / 0.74483434
=0.832

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)
=(19.068 / 5.44) / (15.842 / 4.889)
=3.50514706 / 3.24033545
=1.0817

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)
=((0.017 + 8.203) / 69.703) / ((0 + 5.621) / 57.95)
=0.11792893 / 0.09699741
=1.2158

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
=(-38.539 - -0.733 - -37.566) / 69.703
=-0.0034

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.

BioTime Inc has a M-score of -2.65 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.

BioTime Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1111111111.077
GMI 111111.00761.01051.10461.08250.9774
AQI 1.01973.00923.726.60230.08794.57681.33611.67421.1360.6531
SGI 1.31251.28680.90021.43791.27991.92621.19580.88291.13261.1825
DEPI 1.97550.70370.75566.80330.65550.37220.88930.94031.19130.7619
SGAI 0.71670.83050.96871.39040.74381.11991.46271.25661.32540.9542
LVGI 1.09422.62198.80480.39190.02650.53821.4752.14950.81660.7931
TATA -0.3486-0.9939-1.2286-2.1111-0.068-0.0233-0.0684-0.0478-0.24550.0377
M-score -3.69-6.60-9.79-8.90-2.59-0.26-2.73-2.91-3.39-2.17

BioTime Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 111111111.07750.9514
GMI 1.10881.15871.16741.15611.08170.99710.99910.95890.9781.0325
AQI 1.67421.19990.85270.93861.1361.35331.34621.23590.65310.696
SGI 0.88550.91260.90160.86761.13371.26171.17821.39551.18191.1127
DEPI 0.941.01661.05361.28911.19131.01650.95310.73870.76190.832
SGAI 1.25081.27281.42351.65911.32941.10221.14890.83490.95271.0817
LVGI 2.14952.41251.44051.90380.81660.79710.69890.70340.79311.2158
TATA -0.0477-0.0894-0.0402-0.1351-0.2455-0.1952-0.1545-0.12940.0375-0.0034
M-score -2.90-3.32-2.94-3.55-3.39-2.97-2.84-2.56-2.17-2.65
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK