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BioTime Inc (AMEX:BTX)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

BTX' s Beneish M-Score Range Over the Past 10 Years
Min: -10.09   Max: -0.28
Current: -2.78

-10.09
-0.28

During the past 13 years, the highest Beneish M-Score of BioTime Inc was -0.28. The lowest was -10.09. And the median was -3.39.


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 * 0.8629+0.528 * 0.9968+0.404 * 0.7962+0.892 * 1.3425+0.115 * 1.6348
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.236+4.679 * -0.06-0.327 * 1.4402
=-2.78

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1.65 Mil.
Revenue was 1.461 + 2.306 + 2.009 + 1.264 = $7.04 Mil.
Gross Profit was 1.311 + 1.874 + 1.749 + 1 = $5.93 Mil.
Total Current Assets was $47.24 Mil.
Total Assets was $94.66 Mil.
Property, Plant and Equipment(Net PPE) was $7.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.33 Mil.
Selling, General & Admin. Expense(SGA) was $29.13 Mil.
Total Current Liabilities was $12.46 Mil.
Long-Term Debt was $0.57 Mil.
Net Income was -13.424 + -13.626 + -9.691 + -10.167 = $-46.91 Mil.
Non Operating Income was 3.907 + -0.573 + 0.225 + -0.239 = $3.32 Mil.
Cash Flow from Operations was -13.947 + -11.561 + -9.967 + -9.069 = $-44.54 Mil.
Accounts Receivable was $1.42 Mil.
Revenue was 1.879 + 1.191 + 1.107 + 1.067 = $5.24 Mil.
Gross Profit was 1.656 + 0.96 + 0.855 + 0.935 = $4.41 Mil.
Total Current Assets was $32.41 Mil.
Total Assets was $74.90 Mil.
Property, Plant and Equipment(Net PPE) was $2.86 Mil.
Depreciation, Depletion and Amortization(DDA) was $8.41 Mil.
Selling, General & Admin. Expense(SGA) was $17.56 Mil.
Total Current Liabilities was $7.07 Mil.
Long-Term Debt was $0.09 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)
=(1.645 / 7.04) / (1.42 / 5.244)
=0.23366477 / 0.27078566
=0.8629

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)
=(1.874 / 5.244) / (1.311 / 7.04)
=0.84019832 / 0.84289773
=0.9968

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 - (47.237 + 7.539) / 94.66) / (1 - (32.405 + 2.858) / 74.901)
=0.42133953 / 0.52920522
=0.7962

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
=7.04 / 5.244
=1.3425

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))
=(8.411 / (8.411 + 2.858)) / (6.334 / (6.334 + 7.539))
=0.74638388 / 0.45657032
=1.6348

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)
=(29.133 / 7.04) / (17.557 / 5.244)
=4.13821023 / 3.34801678
=1.236

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)
=((0.57 + 12.462) / 94.66) / ((0.091 + 7.069) / 74.901)
=0.13767167 / 0.09559285
=1.4402

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
=(-46.908 - 3.32 - -44.544) / 94.66
=-0.06

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 -2.78 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

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 111111.07731.25560.61942.06810.8629
GMI 1.15611.0820.99730.99940.95910.97771.03230.9810.99840.9968
AQI 0.93861.1361.35331.34621.23590.65310.6960.69050.6020.7962
SGI 0.86761.13371.26171.17821.39551.18211.11291.3271.41871.3425
DEPI 1.28911.19121.01650.95310.73870.76190.8321.10221.28071.6348
SGAI 1.65911.32941.10221.14890.83490.95261.08160.90220.97991.236
LVGI 1.90380.81660.79710.69890.70340.79311.21581.48651.31621.4402
TATA -0.1351-0.2454-0.1952-0.1545-0.12940.0375-0.0034-0.0161-0.0421-0.06
M-score -3.55-3.39-2.97-2.84-2.56-2.17-2.37-2.88-1.55-2.78
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