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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-2.16 (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 -2.16 signals that the company is a manipulator.

BVSN' s 10-Year Beneish M-Score Range
Min: -8.74   Max: 10
Current: -2.16

-8.74
10

During the past 13 years, the highest Beneish M-Score of BroadVision Inc was 10.00. The lowest was -8.74. And the median was -2.51.


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 * 1.068+0.528 * 1.0375+0.404 * 1.2213+0.892 * 0.8709+0.115 * 0.8034
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1056+4.679 * 0.0592-0.327 * 0.9048
=-2.16

* 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 $3.29 Mil.
Revenue was 4.306 + 3.125 + 3.16 + 2.994 = $13.59 Mil.
Gross Profit was 3.267 + 2.021 + 1.782 + 1.96 = $9.03 Mil.
Total Current Assets was $41.48 Mil.
Total Assets was $41.83 Mil.
Property, Plant and Equipment(Net PPE) was $0.15 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $9.12 Mil.
Total Current Liabilities was $5.44 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.556 + -3.253 + -2.333 + -2.339 = $-9.48 Mil.
Non Operating Income was -0.734 + -1.171 + -0.099 + 0.023 = $-1.98 Mil.
Cash Flow from Operations was -2.621 + -4.455 + -2.046 + -0.856 = $-9.98 Mil.
Accounts Receivable was $3.53 Mil.
Revenue was 3.712 + 3.964 + 4.08 + 3.843 = $15.60 Mil.
Gross Profit was 2.455 + 2.684 + 2.977 + 2.642 = $10.76 Mil.
Total Current Assets was $51.17 Mil.
Total Assets was $51.61 Mil.
Property, Plant and Equipment(Net PPE) was $0.24 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.13 Mil.
Selling, General & Admin. Expense(SGA) was $9.47 Mil.
Total Current Liabilities was $7.42 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)
=(3.286 / 13.585) / (3.533 / 15.599)
=0.24188443 / 0.22648888
=1.068

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)
=(2.021 / 15.599) / (3.267 / 13.585)
=0.68965959 / 0.66470372
=1.0375

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 - (41.484 + 0.148) / 41.826) / (1 - (51.171 + 0.242) / 51.609)
=0.00463826 / 0.00379779
=1.2213

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
=13.585 / 15.599
=0.8709

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))
=(0.134 / (0.134 + 0.242)) / (0.118 / (0.118 + 0.148))
=0.35638298 / 0.44360902
=0.8034

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)
=(9.116 / 13.585) / (9.468 / 15.599)
=0.67103423 / 0.60696198
=1.1056

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 + 5.439) / 41.826) / ((0 + 7.417) / 51.609)
=0.13003873 / 0.14371524
=0.9048

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
=(-9.481 - -1.981 - -9.978) / 41.826
=0.0592

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 -2.16 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.

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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.23451.13730.80910.75611.11340.85261.14681.02411.06731.068
GMI 0.97530.98230.97270.97250.97770.97050.98971.07481.0931.0375
AQI 1.67781.50761.56810.9961.00911.06721.07851.15761.20771.2213
SGI 0.82660.86170.93190.98481.04681.03130.97370.88510.81390.8709
DEPI 1.77081.87461.55740.82270.77530.77610.83460.85560.85720.8034
SGAI 1.18411.15081.07990.99780.95690.93280.98741.06031.14671.1056
LVGI 0.87240.92550.99460.95361.02560.92011.00071.06821.02730.9048
TATA 0.0345-0.0157-0.0183-0.0352-0.01710.0102-0.0087-0.02510.01450.0592
M-score -1.90-2.26-2.53-2.90-2.45-2.52-2.40-2.62-2.43-2.16
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