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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-2.90 (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 -2.90 suggests that the company is not a manipulator.

BVSN' s 10-Year Beneish M-Score Range
Min: -8.75   Max: 10
Current: -2.9

-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 * 0.4857+0.528 * 0.9314+0.404 * 1.1935+0.892 * 0.8759+0.115 * 0.7245
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0724+4.679 * 0.0407-0.327 * 1.0794
=-2.90

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $0.80 Mil.
Revenue was 2.187 + 2.496 + 4.306 + 3.125 = $12.11 Mil.
Gross Profit was 1.33 + 1.734 + 3.267 + 2.021 = $8.35 Mil.
Total Current Assets was $37.45 Mil.
Total Assets was $37.75 Mil.
Property, Plant and Equipment(Net PPE) was $0.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.11 Mil.
Selling, General & Admin. Expense(SGA) was $8.58 Mil.
Total Current Liabilities was $6.09 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.496 + -3.555 + -1.556 + -3.253 = $-10.86 Mil.
Non Operating Income was 0.131 + -1.399 + -0.734 + -1.171 = $-3.17 Mil.
Cash Flow from Operations was -1.104 + -1.045 + -2.621 + -4.455 = $-9.23 Mil.
Accounts Receivable was $1.89 Mil.
Revenue was 3.16 + 2.994 + 3.712 + 3.964 = $13.83 Mil.
Gross Profit was 1.782 + 1.96 + 2.455 + 2.684 = $8.88 Mil.
Total Current Assets was $47.17 Mil.
Total Assets was $47.58 Mil.
Property, Plant and Equipment(Net PPE) was $0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $9.13 Mil.
Total Current Liabilities was $7.11 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)
=(0.804 / 12.114) / (1.89 / 13.83)
=0.06636949 / 0.13665944
=0.4857

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)
=(1.734 / 13.83) / (1.33 / 12.114)
=0.64215474 / 0.68945022
=0.9314

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 - (37.448 + 0.103) / 37.747) / (1 - (47.17 + 0.201) / 47.578)
=0.00519247 / 0.00435075
=1.1935

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
=12.114 / 13.83
=0.8759

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))
=(0.121 / (0.121 + 0.201)) / (0.111 / (0.111 + 0.103))
=0.3757764 / 0.51869159
=0.7245

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)
=(8.579 / 12.114) / (9.133 / 13.83)
=0.70818887 / 0.66037599
=1.0724

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 + 6.086) / 37.747) / ((0 + 7.107) / 47.578)
=0.16123136 / 0.14937576
=1.0794

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
=(-10.86 - -3.173 - -9.225) / 37.747
=0.0407

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 -2.90 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.80910.75611.11340.85261.14681.02411.06731.0680.85720.4857
GMI 0.97270.97250.97770.97050.98971.07481.0931.03751.01540.9314
AQI 1.56810.9961.00911.06721.07851.15761.20771.22131.27431.1935
SGI 0.93190.98481.04681.03130.97370.88510.81390.87090.88730.8759
DEPI 1.55740.82270.77530.77610.83460.85560.85720.80340.74310.7245
SGAI 1.07990.99780.95690.93280.98741.06031.14671.10561.03211.0724
LVGI 0.99460.95361.02560.92011.00071.06821.02730.90480.98141.0794
TATA -0.0183-0.0352-0.01710.0102-0.0087-0.02510.01450.05920.0720.0407
M-score -2.53-2.90-2.45-2.52-2.40-2.62-2.43-2.16-2.29-2.90
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