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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-2.29 (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.

BroadVision Inc has a M-score of -2.29 suggests that the company is not a manipulator.

BVSN' s 10-Year Beneish M-Score Range
Min: -8.75   Max: 10
Current: -2.29

-8.75
10

During the past 13 years, the highest Beneish M-Score of BroadVision Inc was 10.00. The lowest was -8.75. And the median was -2.53.


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 BroadVision 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 * 0.8572+0.528 * 1.0154+0.404 * 1.2743+0.892 * 0.8873+0.115 * 0.7431
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0321+4.679 * 0.072-0.327 * 0.9814
=-2.29

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $2.02 Mil.
Revenue was 2.496 + 4.306 + 3.125 + 3.16 = $13.09 Mil.
Gross Profit was 1.734 + 3.267 + 2.021 + 1.782 = $8.80 Mil.
Total Current Assets was $39.60 Mil.
Total Assets was $39.93 Mil.
Property, Plant and Equipment(Net PPE) was $0.12 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $8.64 Mil.
Total Current Liabilities was $6.14 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -3.555 + -1.556 + -3.253 + -2.333 = $-10.70 Mil.
Non Operating Income was -1.399 + -0.734 + -1.171 + -0.099 = $-3.40 Mil.
Cash Flow from Operations was -1.045 + -2.621 + -4.455 + -2.046 = $-10.17 Mil.
Accounts Receivable was $2.66 Mil.
Revenue was 2.994 + 3.712 + 3.964 + 4.08 = $14.75 Mil.
Gross Profit was 1.96 + 2.455 + 2.684 + 2.977 = $10.08 Mil.
Total Current Assets was $49.95 Mil.
Total Assets was $50.37 Mil.
Property, Plant and Equipment(Net PPE) was $0.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.13 Mil.
Selling, General & Admin. Expense(SGA) was $9.43 Mil.
Total Current Liabilities was $7.89 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)
=(2.023 / 13.087) / (2.66 / 14.75)
=0.15458088 / 0.18033898
=0.8572

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)
=(3.267 / 14.75) / (1.734 / 13.087)
=0.68311864 / 0.67272866
=1.0154

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 - (39.604 + 0.124) / 39.928) / (1 - (49.951 + 0.222) / 50.371)
=0.00500902 / 0.00393083
=1.2743

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
=13.087 / 14.75
=0.8873

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))
=(0.127 / (0.127 + 0.222)) / (0.119 / (0.119 + 0.124))
=0.36389685 / 0.48971193
=0.7431

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)
=(8.637 / 13.087) / (9.432 / 14.75)
=0.65996791 / 0.63945763
=1.0321

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 + 6.141) / 39.928) / ((0 + 7.894) / 50.371)
=0.15380184 / 0.15671716
=0.9814

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
=(-10.697 - -3.403 - -10.167) / 39.928
=0.072

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.

BroadVision Inc has a M-score of -2.29 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.

BroadVision Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.14130.92470.7831.49431.0080.8551.19141.13730.85261.068
GMI 1.04280.84170.92131.09060.99481.06621.07810.98230.97051.0375
AQI 1.34580.61180.85270.0710.90891.01820.1221.50761.06721.2213
SGI 0.77070.86470.96220.71780.86240.70470.80460.86171.03130.8709
DEPI 0.69151.48240.94451.38411.2540.88190.7391.87460.77610.8034
SGAI 0.90370.75060.89921.371.01711.32061.06551.15080.93281.1056
LVGI 1.52640.35530.63411.15830.71830.82510.98580.92550.92010.9048
TATA 0.5361-0.00770.0405-0.38160.0402-0.01650.0225-0.01570.01020.0592
M-score -0.07-2.64-2.49-4.46-2.33-2.92-2.72-2.26-2.52-2.16

BroadVision Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.13730.80910.75611.11340.85261.14681.02411.06731.0680.8572
GMI 0.98230.97270.97250.97770.97050.98971.07481.0931.03751.0154
AQI 1.50761.56810.9961.00911.06721.07851.15761.20771.22131.2743
SGI 0.86170.93190.98481.04681.03130.97370.88510.81390.87090.8873
DEPI 1.87461.55740.82270.77530.77610.83460.85560.85720.80340.7431
SGAI 1.15081.07990.99780.95690.93280.98741.06031.14671.10561.0321
LVGI 0.92550.99460.95361.02560.92011.00071.06821.02730.90480.9814
TATA -0.0157-0.0183-0.0352-0.01710.0102-0.0087-0.02510.01450.05920.072
M-score -2.26-2.53-2.90-2.45-2.52-2.40-2.62-2.43-2.16-2.29
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