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BioTime Inc (AMEX:BTX)
Beneish M-Score
-1.55 (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 -1.55 signals that the company is a manipulator.

BTX' s Beneish M-Score Range Over the Past 10 Years
Min: -38.13   Max: 10000000
Current: -1.55

-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 -3.43.


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 * 2.0683+0.528 * 0.9987+0.404 * 0.602+0.892 * 1.4185+0.115 * 1.2808
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.98+4.679 * -0.0421-0.327 * 1.3162
=-1.55

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $2.98 Mil.
Revenue was 2.306 + 2.009 + 1.264 + 1.878 = $7.46 Mil.
Gross Profit was 1.874 + 1.749 + 1 + 1.655 = $6.28 Mil.
Total Current Assets was $34.37 Mil.
Total Assets was $76.86 Mil.
Property, Plant and Equipment(Net PPE) was $6.78 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.23 Mil.
Selling, General & Admin. Expense(SGA) was $23.70 Mil.
Total Current Liabilities was $10.34 Mil.
Long-Term Debt was $0.27 Mil.
Net Income was -13.626 + -9.691 + -10.167 + -10.584 = $-44.07 Mil.
Non Operating Income was -0.573 + 0.225 + -0.239 + -0.541 = $-1.13 Mil.
Cash Flow from Operations was -11.561 + -9.967 + -9.069 + -9.11 = $-39.71 Mil.
Accounts Receivable was $1.01 Mil.
Revenue was 1.191 + 1.107 + 1.067 + 1.892 = $5.26 Mil.
Gross Profit was 0.96 + 0.855 + 0.935 + 1.67 = $4.42 Mil.
Total Current Assets was $9.94 Mil.
Total Assets was $55.66 Mil.
Property, Plant and Equipment(Net PPE) was $2.76 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.50 Mil.
Selling, General & Admin. Expense(SGA) was $17.05 Mil.
Total Current Liabilities was $5.79 Mil.
Long-Term Debt was $0.05 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)
=(2.975 / 7.457) / (1.014 / 5.257)
=0.398954 / 0.19288568
=2.0683

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)
=(1.749 / 5.257) / (1.874 / 7.457)
=0.84078372 / 0.84189352
=0.9987

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 - (34.365 + 6.781) / 76.859) / (1 - (9.939 + 2.758) / 55.655)
=0.46465606 / 0.77186237
=0.602

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
=7.457 / 5.257
=1.4185

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))
=(6.503 / (6.503 + 2.758)) / (8.23 / (8.23 + 6.781))
=0.70219199 / 0.54826461
=1.2808

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)
=(23.702 / 7.457) / (17.05 / 5.257)
=3.17849001 / 3.24329465
=0.98

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)
=((0.268 + 10.336) / 76.859) / ((0.045 + 5.789) / 55.655)
=0.13796693 / 0.10482436
=1.3162

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
=(-44.068 - -1.128 - -39.707) / 76.859
=-0.0421

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 -1.55 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.

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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1111111.07751.25580.61952.0683
GMI 1.16741.15611.08170.99710.99910.95890.9781.03250.98120.9987
AQI 0.85270.93861.1361.35331.34621.23590.65310.6960.69050.602
SGI 0.90160.86761.13371.26171.17821.39551.18191.11271.32681.4185
DEPI 1.05361.28911.19131.01650.95310.73870.76190.8321.10221.2808
SGAI 1.42351.65911.32941.10221.14890.83490.95281.08180.90230.98
LVGI 1.44051.90380.81660.79710.69890.70340.79311.21581.48651.3162
TATA -0.0402-0.1351-0.2455-0.1952-0.1545-0.12940.0375-0.0034-0.0161-0.0421
M-score -2.94-3.55-3.39-2.97-2.84-2.56-2.17-2.37-2.88-1.55
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