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BioTime Inc (AMEX:BTX)
Beneish M-Score
-2.17 (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 -2.17 signals that the company is a manipulator.

BTX' s 10-Year Beneish M-Score Range
Min: -10.09   Max: -0.28
Current: -2.17

-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 -3.57.


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 * 1.0775+0.528 * 0.978+0.404 * 0.6531+0.892 * 1.1819+0.115 * 0.7619
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9527+4.679 * 0.0375-0.327 * 0.7931
=-2.17

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1.42 Mil.
Revenue was 1.878 + 1.191 + 1.107 + 1.067 = $5.24 Mil.
Gross Profit was 1.655 + 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 $7.13 Mil.
Long-Term Debt was $0.03 Mil.
Net Income was -10.584 + -8.268 + -9.52 + -8.099 = $-36.47 Mil.
Non Operating Income was -0.54 + -0.119 + 0.165 + 0.069 = $-0.43 Mil.
Cash Flow from Operations was -9.11 + -8.609 + -10.778 + -10.357 = $-38.85 Mil.
Accounts Receivable was $1.12 Mil.
Revenue was 1.892 + 0.714 + 1.216 + 0.614 = $4.44 Mil.
Gross Profit was 1.67 + 0.507 + 1.036 + 0.432 = $3.65 Mil.
Total Current Assets was $7.95 Mil.
Total Assets was $57.73 Mil.
Property, Plant and Equipment(Net PPE) was $3.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.95 Mil.
Selling, General & Admin. Expense(SGA) was $15.59 Mil.
Total Current Liabilities was $6.96 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)
=(1.42 / 5.243) / (1.115 / 4.436)
=0.27083731 / 0.25135257
=1.0775

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)
=(0.96 / 4.436) / (1.655 / 5.243)
=0.8216862 / 0.84016784
=0.978

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 - (32.405 + 2.858) / 74.901) / (1 - (7.95 + 2.998) / 57.73)
=0.52920522 / 0.81035857
=0.6531

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
=5.243 / 4.436
=1.1819

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))
=(3.952 / (3.952 + 2.998)) / (8.411 / (8.411 + 2.858))
=0.56863309 / 0.74638388
=0.7619

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)
=(17.556 / 5.243) / (15.591 / 4.436)
=3.34846462 / 3.51465284
=0.9527

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)
=((0.031 + 7.129) / 74.901) / ((0 + 6.958) / 57.73)
=0.09559285 / 0.12052659
=0.7931

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
=(-36.471 - -0.425 - -38.854) / 74.901
=0.0375

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 -2.17 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1111111111.0775
GMI 1.05481.10881.15871.16741.15611.08170.99710.99910.95890.978
AQI 1.60961.67421.19990.85270.93861.1361.35331.34621.23590.6531
SGI 1.03040.88550.91260.90160.86761.13371.26171.17821.39551.1819
DEPI 0.97660.941.01661.05361.28911.19131.01650.95310.73870.7619
SGAI 1.3031.25081.27281.42351.65911.32941.10221.14890.83490.9527
LVGI 1.46312.14952.41251.44051.90380.81660.79710.69890.70340.7931
TATA -0.0604-0.0477-0.0894-0.0402-0.1351-0.2455-0.1952-0.1545-0.12940.0375
M-score -2.67-2.90-3.32-2.94-3.55-3.39-2.97-2.84-2.56-2.17
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