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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

BVSN' s 10-Year Beneish M-Score Range
Min: -8.79   Max: 9.95
Current: -2.62

-8.79
9.95

During the past 13 years, the highest Beneish M-Score of BroadVision Inc was 9.95. The lowest was -8.79. And the median was -2.54.


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 * 1.0241+0.528 * 1.0748+0.404 * 1.1576+0.892 * 0.8851+0.115 * 0.8556
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0603+4.679 * -0.0251-0.327 * 1.0682
=-2.62

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was -2.333 + -2.339 + -1.334 + -0.848 = $-6.85 Mil.
Non Operating Income was -0.099 + 0.023 + 0.146 + 0.527 = $0.60 Mil.
Cash Flow from Operations was -2.046 + -0.856 + -1.43 + -1.927 = $-6.26 Mil.
Accounts Receivable was $2.09 Mil.
Revenue was 4.08 + 3.843 + 4.074 + 3.628 = $15.63 Mil.
Gross Profit was 2.977 + 2.642 + 2.733 + 2.432 = $10.78 Mil.
Total Current Assets was $52.73 Mil.
Total Assets was $53.21 Mil.
Property, Plant and Equipment(Net PPE) was $0.29 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.14 Mil.
Selling, General & Admin. Expense(SGA) was $9.73 Mil.
Total Current Liabilities was $7.44 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)
=(1.89 / 13.83) / (2.085 / 15.625)
=0.13665944 / 0.13344
=1.0241

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)
=(1.96 / 15.625) / (1.782 / 13.83)
=0.690176 / 0.64215474
=1.0748

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 - (47.17 + 0.201) / 47.578) / (1 - (52.726 + 0.287) / 53.213)
=0.00435075 / 0.00375848
=1.1576

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
=13.83 / 15.625
=0.8851

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))
=(0.136 / (0.136 + 0.287)) / (0.121 / (0.121 + 0.201))
=0.321513 / 0.3757764
=0.8556

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)
=(9.133 / 13.83) / (9.732 / 15.625)
=0.66037599 / 0.622848
=1.0603

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 + 7.107) / 47.578) / ((0 + 7.441) / 53.213)
=0.14937576 / 0.13983425
=1.0682

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
=(-6.854 - 0.597 - -6.259) / 47.578
=-0.0251

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 -2.62 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.0551.14130.92470.7831.49431.0080.8551.19141.13730.8526
GMI 1.02411.04280.84170.92131.09060.99481.06621.07810.98230.9705
AQI 1.0211.34580.61180.85270.0710.90891.01820.1221.50761.0672
SGI 0.88560.77070.86470.96220.71780.86240.70470.80460.86171.0313
DEPI 0.84960.57611.71020.94451.38411.2540.88190.7391.87460.7761
SGAI 1.15080.90370.75060.89921.371.01711.32061.06551.15080.9328
LVGI 1.4331.51090.35530.63411.15830.71830.82510.98580.92550.9201
TATA 0.43070.5361-0.00770.0405-0.38160.0402-0.01650.0225-0.01570.0102
M-score -0.68-0.08-2.61-2.49-4.46-2.33-2.92-2.72-2.26-2.52

BroadVision Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.95561.12341.23451.13730.80910.75611.11340.85261.14681.0241
GMI 1.05130.99920.97530.98230.97270.97250.97770.97050.98971.0748
AQI 0.13891.78391.67781.50761.56810.9961.00911.06721.07851.1576
SGI 0.77180.81850.82660.86170.93190.98481.04681.03130.97370.8851
DEPI 0.85941.69911.77081.87461.55740.82270.77530.77610.83460.8556
SGAI 1.11681.12651.18411.15081.07990.99780.95690.93280.98741.0603
LVGI 0.90590.92480.87240.92550.99460.95361.02560.92011.00071.0682
TATA 0.03650.06110.0345-0.0157-0.0183-0.0352-0.01710.0102-0.0087-0.0251
M-score -2.88-1.84-1.90-2.26-2.53-2.90-2.45-2.52-2.40-2.62
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