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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-3.26 (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 -3.26 suggests that the company is not a manipulator.

BVSN' s Beneish M-Score Range Over the Past 10 Years
Min: -13.01   Max: 18.81
Current: -3.26

-13.01
18.81

During the past 13 years, the highest Beneish M-Score of BroadVision Inc was 18.81. The lowest was -13.01. And the median was -2.60.


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 * 0.7434+0.528 * 1.1127+0.404 * 0.9748+0.892 * 0.6843+0.115 * 1.0979
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4379+4.679 * -0.0419-0.327 * 1.1593
=-3.26

* 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 $1.03 Mil.
Revenue was 2.009 + 2.677 + 2.082 + 2.187 = $8.96 Mil.
Gross Profit was 1.199 + 1.501 + 1.384 + 1.33 = $5.41 Mil.
Total Current Assets was $29.48 Mil.
Total Assets was $29.70 Mil.
Property, Plant and Equipment(Net PPE) was $0.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.06 Mil.
Selling, General & Admin. Expense(SGA) was $8.50 Mil.
Total Current Liabilities was $5.30 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.051 + -3.319 + -2.067 + -2.496 = $-9.93 Mil.
Non Operating Income was 0.639 + -0.931 + 0.375 + 0.131 = $0.21 Mil.
Cash Flow from Operations was -1.748 + -3.189 + -2.863 + -1.104 = $-8.90 Mil.
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.



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)
=(1.029 / 8.955) / (2.023 / 13.087)
=0.11490787 / 0.15458088
=0.7434

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)
=(1.501 / 13.087) / (1.199 / 8.955)
=0.67272866 / 0.60457845
=1.1127

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 - (29.475 + 0.077) / 29.697) / (1 - (39.604 + 0.124) / 39.928)
=0.00488265 / 0.00500902
=0.9748

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
=8.955 / 13.087
=0.6843

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))
=(0.119 / (0.119 + 0.124)) / (0.062 / (0.062 + 0.077))
=0.48971193 / 0.44604317
=1.0979

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)
=(8.498 / 8.955) / (8.637 / 13.087)
=0.94896706 / 0.65996791
=1.4379

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 + 5.295) / 29.697) / ((0 + 6.141) / 39.928)
=0.17830084 / 0.15380184
=1.1593

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
=(-9.933 - 0.214 - -8.904) / 29.697
=-0.0419

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 -3.26 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.92470.7831.49431.0080.8551.19141.13730.85261.0680.7667
GMI 0.84170.92131.09060.99481.06621.07810.98230.97051.03751.055
AQI 0.61180.85270.0710.90891.01820.1221.50761.06721.22130.9572
SGI 0.86470.96220.71780.86240.70470.80460.86171.03130.87090.695
DEPI 1.71020.94451.38411.2540.88190.7391.87460.77610.80340.9448
SGAI 0.75060.89921.371.01711.32061.06551.15080.93281.10561.3242
LVGI 0.35530.63411.15830.71830.82510.98580.92550.92010.90481.3807
TATA -0.00770.0405-0.38160.0402-0.01650.0225-0.01570.01020.0592-0.0438
M-score -2.61-2.49-4.46-2.33-2.92-2.72-2.26-2.52-2.16-3.35

BroadVision Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.85261.14681.02411.06731.0680.85720.48570.43710.76670.7434
GMI 0.97050.98971.07481.0931.03751.01540.93140.90781.0551.1127
AQI 1.06721.07851.15761.20771.22131.27431.19351.1870.95720.9748
SGI 1.03130.97370.88510.81390.87090.88730.87590.85220.6950.6843
DEPI 0.77610.83460.85560.85720.80340.74310.72450.82410.94481.0979
SGAI 0.93280.98741.06031.14671.10561.03211.07241.08171.32421.4379
LVGI 0.92011.00071.06821.02730.90480.98141.07941.12531.38071.1593
TATA 0.0102-0.0087-0.02510.01450.05920.0720.0407-0.0119-0.0438-0.0419
M-score -2.52-2.40-2.62-2.43-2.16-2.29-2.90-3.23-3.35-3.26
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