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BioTime Inc (AMEX:BTX)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

BTX' s Beneish M-Score Range Over the Past 10 Years
Min: -38.13   Max: 10000000
Current: -2.73

-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 -3.49.


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 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 * 0.8562+0.528 * 0.9688+0.404 * 1.4293+0.892 * 1.1203+0.115 * 0.9821
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5858+4.679 * -0.0813-0.327 * 0.697
=-2.73

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $0.94 Mil.
Revenue was 1.266 + 2.073 + 1.461 + 2.306 = $7.11 Mil.
Gross Profit was 1.171 + 1.848 + 1.311 + 1.874 = $6.20 Mil.
Total Current Assets was $31.05 Mil.
Total Assets was $104.33 Mil.
Property, Plant and Equipment(Net PPE) was $4.06 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.23 Mil.
Selling, General & Admin. Expense(SGA) was $36.28 Mil.
Total Current Liabilities was $7.40 Mil.
Long-Term Debt was $1.00 Mil.
Net Income was 24.549 + -17.112 + -13.424 + -13.626 = $-19.61 Mil.
Non Operating Income was 35.704 + -0.107 + 3.907 + -0.573 = $38.93 Mil.
Cash Flow from Operations was -10.246 + -14.313 + -13.947 + -11.561 = $-50.07 Mil.
Accounts Receivable was $0.98 Mil.
Revenue was 2.009 + 1.264 + 1.879 + 1.191 = $6.34 Mil.
Gross Profit was 1.749 + 1 + 1.656 + 0.96 = $5.37 Mil.
Total Current Assets was $37.00 Mil.
Total Assets was $79.61 Mil.
Property, Plant and Equipment(Net PPE) was $5.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.29 Mil.
Selling, General & Admin. Expense(SGA) was $20.42 Mil.
Total Current Liabilities was $9.19 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)
=(0.939 / 7.106) / (0.979 / 6.343)
=0.13214185 / 0.15434337
=0.8562

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)
=(5.365 / 6.343) / (6.204 / 7.106)
=0.84581428 / 0.87306502
=0.9688

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 - (31.047 + 4.062) / 104.327) / (1 - (37.004 + 5.652) / 79.61)
=0.66347158 / 0.46418792
=1.4293

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
=7.106 / 6.343
=1.1203

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))
=(8.292 / (8.292 + 5.652)) / (6.234 / (6.234 + 4.062))
=0.59466437 / 0.60547786
=0.9821

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)
=(36.276 / 7.106) / (20.419 / 6.343)
=5.10498171 / 3.21913921
=1.5858

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)
=((0.996 + 7.403) / 104.327) / ((0.003 + 9.192) / 79.61)
=0.08050648 / 0.11550057
=0.697

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
=(-19.613 - 38.931 - -50.067) / 104.327
=-0.0813

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 -2.73 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 111111111.07680.8634
GMI 11111.00761.01051.10461.08280.97710.9973
AQI 3.00923.726.60230.08794.57681.33611.67421.1360.65310.7962
SGI 1.28680.90021.43791.27991.92621.19580.88291.13261.18271.3417
DEPI 0.70370.75566.80330.65550.37220.88930.94031.19120.76191.6348
SGAI 0.83050.96871.39040.74381.11991.46271.25661.32540.95411.2368
LVGI 2.62198.80480.39190.02650.53821.4752.14950.81660.79311.4402
TATA -0.9939-1.2286-2.1111-0.068-0.0233-0.0684-0.0478-0.24540.0377-0.0628
M-score -6.60-9.79-8.90-2.59-0.26-2.73-2.91-3.39-2.17-2.79

BioTime Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1111.07731.25560.61942.06810.86291.25420.8562
GMI 0.99730.99940.95910.97771.03230.9810.99840.99680.9510.9688
AQI 1.35331.34621.23590.65310.6960.69050.6020.79620.86961.4293
SGI 1.26171.17821.39551.18211.11291.3271.41871.34251.44261.1203
DEPI 1.01650.95310.73870.76190.8321.10221.28071.63481.76840.9821
SGAI 1.10221.14890.83490.95261.08160.90220.97991.2361.30241.5858
LVGI 0.79710.69890.70340.79311.21581.48651.31621.44021.51520.697
TATA -0.1952-0.1545-0.12940.0375-0.0034-0.0161-0.0421-0.06-0.0938-0.0813
M-score -2.97-2.84-2.56-2.17-2.37-2.88-1.55-2.78-2.50-2.73
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