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BioTime Inc (AMEX:BTX)
Beneish M-Score
-2.50 (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 -2.50 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: -2.5

-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 * 1.2542+0.528 * 0.951+0.404 * 0.8696+0.892 * 1.4426+0.115 * 1.7684
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3024+4.679 * -0.0938-0.327 * 1.5152
=-2.50

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2.07 Mil.
Revenue was 2.073 + 1.461 + 2.306 + 2.009 = $7.85 Mil.
Gross Profit was 1.848 + 1.311 + 1.874 + 1.749 = $6.78 Mil.
Total Current Assets was $32.91 Mil.
Total Assets was $80.11 Mil.
Property, Plant and Equipment(Net PPE) was $8.93 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.50 Mil.
Selling, General & Admin. Expense(SGA) was $35.83 Mil.
Total Current Liabilities was $13.67 Mil.
Long-Term Debt was $0.65 Mil.
Net Income was -17.112 + -13.424 + -13.626 + -9.691 = $-53.85 Mil.
Non Operating Income was -0.107 + 3.907 + -0.573 + 0.225 = $3.45 Mil.
Cash Flow from Operations was -14.313 + -13.947 + -11.561 + -9.967 = $-49.79 Mil.
Accounts Receivable was $1.14 Mil.
Revenue was 1.264 + 1.879 + 1.191 + 1.107 = $5.44 Mil.
Gross Profit was 1 + 1.656 + 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.



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)
=(2.068 / 7.849) / (1.143 / 5.441)
=0.26347305 / 0.21007168
=1.2542

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)
=(4.471 / 5.441) / (6.782 / 7.849)
=0.82172395 / 0.86405912
=0.951

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 - (32.907 + 8.932) / 80.114) / (1 - (28.544 + 2.865) / 69.703)
=0.4777567 / 0.54938812
=0.8696

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
=7.849 / 5.441
=1.4426

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))
=(8.363 / (8.363 + 2.865)) / (6.5 / (6.5 + 8.932))
=0.74483434 / 0.4212027
=1.7684

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)
=(35.826 / 7.849) / (19.069 / 5.441)
=4.56440311 / 3.50468664
=1.3024

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)
=((0.646 + 13.669) / 80.114) / ((0.017 + 8.203) / 69.703)
=0.17868288 / 0.11792893
=1.5152

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
=(-53.853 - 3.452 - -49.788) / 80.114
=-0.0938

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 -2.50 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 111111111.0770.8632
GMI 1111111.12471.08250.97740.9973
AQI 3.00923.726.60230.08794.57681.33611.67421.1360.65310.7962
SGI 1.28680.90021.43791.27991.91171.18340.8991.13261.18251.342
DEPI 0.70370.75566.80330.65550.37220.88910.94051.19130.76191.6347
SGAI 0.83050.96871.40060.73841.19151.39971.23421.32540.95421.2366
LVGI 2.62198.80480.39190.02650.53821.4752.14950.81660.79311.4402
TATA -0.9939-1.2286-2.1111-0.068-0.0233-0.0684-0.0478-0.24550.0377-0.0628
M-score -6.60-9.79-8.91-2.59-0.28-2.74-2.88-3.39-2.17-2.79

BioTime Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 11111.07731.25560.61942.06810.86291.2542
GMI 1.0820.99730.99940.95910.97771.03230.9810.99840.99680.951
AQI 1.1361.35331.34621.23590.65310.6960.69050.6020.79620.8696
SGI 1.13371.26171.17821.39551.18211.11291.3271.41871.34251.4426
DEPI 1.19121.01650.95310.73870.76190.8321.10221.28071.63481.7684
SGAI 1.32941.10221.14890.83490.95261.08160.90220.97991.2361.3024
LVGI 0.81660.79710.69890.70340.79311.21581.48651.31621.44021.5152
TATA -0.2454-0.1952-0.1545-0.12940.0375-0.0034-0.0161-0.0421-0.06-0.0938
M-score -3.39-2.97-2.84-2.56-2.17-2.37-2.88-1.55-2.78-2.50
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