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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-3.23 (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 -3.23 suggests that the company is not a manipulator.

BVSN' s Beneish M-Score Range Over the Past 10 Years
Min: -8.75   Max: 18.81
Current: -3.23

-8.75
18.81

During the past 13 years, the highest Beneish M-Score of BroadVision Inc was 18.81. The lowest was -8.75. And the median was -2.52.


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 * 0.4371+0.528 * 0.9078+0.404 * 1.187+0.892 * 0.8522+0.115 * 0.8241
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0817+4.679 * -0.0119-0.327 * 1.1253
=-3.23

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $0.81 Mil.
Revenue was 2.082 + 2.187 + 2.496 + 4.306 = $11.07 Mil.
Gross Profit was 1.384 + 1.33 + 1.734 + 3.267 = $7.72 Mil.
Total Current Assets was $34.53 Mil.
Total Assets was $34.82 Mil.
Property, Plant and Equipment(Net PPE) was $0.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.09 Mil.
Selling, General & Admin. Expense(SGA) was $8.43 Mil.
Total Current Liabilities was $5.21 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.067 + -2.496 + -3.555 + -1.556 = $-9.67 Mil.
Non Operating Income was 0.375 + 0.131 + -1.399 + -0.734 = $-1.63 Mil.
Cash Flow from Operations was -2.863 + -1.104 + -1.045 + -2.621 = $-7.63 Mil.
Accounts Receivable was $2.18 Mil.
Revenue was 3.125 + 3.16 + 2.994 + 3.712 = $12.99 Mil.
Gross Profit was 2.021 + 1.782 + 1.96 + 2.455 = $8.22 Mil.
Total Current Assets was $43.09 Mil.
Total Assets was $43.46 Mil.
Property, Plant and Equipment(Net PPE) was $0.17 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.12 Mil.
Selling, General & Admin. Expense(SGA) was $9.14 Mil.
Total Current Liabilities was $5.78 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)
=(0.811 / 11.071) / (2.177 / 12.991)
=0.07325445 / 0.16757755
=0.4371

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)
=(1.33 / 12.991) / (1.384 / 11.071)
=0.63259179 / 0.69686569
=0.9078

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 - (34.531 + 0.096) / 34.821) / (1 - (43.085 + 0.173) / 43.462)
=0.00557135 / 0.00469376
=1.187

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
=11.071 / 12.991
=0.8522

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))
=(0.118 / (0.118 + 0.173)) / (0.093 / (0.093 + 0.096))
=0.40549828 / 0.49206349
=0.8241

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)
=(8.428 / 11.071) / (9.143 / 12.991)
=0.76126818 / 0.70379493
=1.0817

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 + 5.213) / 34.821) / ((0 + 5.782) / 43.462)
=0.14970851 / 0.13303576
=1.1253

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
=(-9.674 - -1.627 - -7.633) / 34.821
=-0.0119

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 -3.23 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

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.75611.11340.85261.14681.02411.06731.0680.85720.48570.4371
GMI 0.97250.97770.97050.98971.07481.0931.03751.01540.93140.9078
AQI 0.9961.00911.06721.07851.15761.20771.22131.27431.19351.187
SGI 0.98481.04681.03130.97370.88510.81390.87090.88730.87590.8522
DEPI 0.82270.77530.77610.83460.85560.85720.80340.74310.72450.8241
SGAI 0.99780.95690.93280.98741.06031.14671.10561.03211.07241.0817
LVGI 0.95361.02560.92011.00071.06821.02730.90480.98141.07941.1253
TATA -0.0352-0.01710.0102-0.0087-0.02510.01450.05920.0720.0407-0.0119
M-score -2.90-2.45-2.52-2.40-2.62-2.43-2.16-2.29-2.90-3.23
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