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Bowl America Incorporated (AMEX:BWL.A)
Beneish M-Score
-2.83 (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.

Bowl America Incorporated has a M-score of -2.83 suggests that the company is not a manipulator.

BWL.A' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 6.01
Current: -2.83

-3.83
6.01

During the past 13 years, the highest Beneish M-Score of Bowl America Incorporated was 6.01. The lowest was -3.83. And the median was -2.72.


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 Bowl America Incorporated 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 * 0.5015+0.528 * 1.0103+0.404 * 1.05+0.892 * 0.9799+0.115 * 0.9916
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0098+4.679 * 0.0357-0.327 * 1.2025
=-2.83

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $0.14 Mil.
Revenue was 5.967 + 4.75 + 4.731 + 7.734 = $23.18 Mil.
Gross Profit was 3.848 + 2.755 + 3.026 + 5.519 = $15.15 Mil.
Total Current Assets was $4.78 Mil.
Total Assets was $35.54 Mil.
Property, Plant and Equipment(Net PPE) was $21.38 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.37 Mil.
Selling, General & Admin. Expense(SGA) was $12.25 Mil.
Total Current Liabilities was $3.63 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.371 + -0.318 + 1.612 + 1.328 = $2.99 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 1.481 + 0.007 + -2.983 + 3.22 = $1.73 Mil.
Accounts Receivable was $0.29 Mil.
Revenue was 6.13 + 5.11 + 4.678 + 7.739 = $23.66 Mil.
Gross Profit was 4.061 + 3.082 + 2.912 + 5.563 = $15.62 Mil.
Total Current Assets was $3.96 Mil.
Total Assets was $35.16 Mil.
Property, Plant and Equipment(Net PPE) was $22.36 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.42 Mil.
Selling, General & Admin. Expense(SGA) was $12.38 Mil.
Total Current Liabilities was $2.99 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)
=(0.143 / 23.182) / (0.291 / 23.657)
=0.00616858 / 0.0123008
=0.5015

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)
=(2.755 / 23.657) / (3.848 / 23.182)
=0.66018515 / 0.65343801
=1.0103

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 - (4.779 + 21.375) / 35.536) / (1 - (3.963 + 22.356) / 35.16)
=0.26401396 / 0.25145051
=1.05

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
=23.182 / 23.657
=0.9799

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))
=(1.42 / (1.42 + 22.356)) / (1.37 / (1.37 + 21.375))
=0.05972409 / 0.06023302
=0.9916

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)
=(12.247 / 23.182) / (12.377 / 23.657)
=0.52829782 / 0.52318553
=1.0098

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 + 3.634) / 35.536) / ((0 + 2.99) / 35.16)
=0.10226249 / 0.08503982
=1.2025

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
=(2.993 - 0 - 1.725) / 35.536
=0.0357

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.

Bowl America Incorporated has a M-score of -2.83 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.

Bowl America Incorporated Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 111.23660.202810.53511.17891.62880.44461.23930.1885
GMI 1.00280.99851.01850.9851.01661.03291.03411.01020.98110.9842
AQI 0.9241.00351.03911.68860.86180.91771.08121.16771.13691.0983
SGI 0.96791.00611.05991.05460.94150.98690.9130.97760.9180.98
DEPI 1.11921.12011.01270.84051.04170.97630.99211.06561.05970.9943
SGAI 1.0020.98981.00490.99061.03960.99091.02971.03161.02481.0049
LVGI 1.0421.12360.88840.88931.07711.02440.94681.07540.98561.1242
TATA -0.074-0.044-0.0157-0.042-0.0063-0.0802-0.0264-0.0482-0.03410.0258
M-score -2.88-2.70-2.22-3.076.14-2.73-2.04-3.19-2.44-3.13

Bowl America Incorporated Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.44340.472201.23931.2430.960510.18970.20920.5015
GMI 1.00310.99210.98580.98120.97030.97050.98430.98110.99641.0103
AQI 1.0691.10481.11041.13691.20831.21011.20351.09831.10051.05
SGI 0.98731.00090.98110.9180.90870.8990.91750.97380.97450.9799
DEPI 1.06481.09641.12841.0591.07971.02531.00320.99490.98710.9916
SGAI 1.02261.00771.02871.02481.02711.02270.99721.00341.00121.0098
LVGI 1.08680.96541.00520.98561.02880.88341.14941.12421.00831.2025
TATA -0.0426-0.0479-0.0383-0.0342-0.0396-0.0401-0.04370.02580.04110.0357
M-score -3.20-3.13-3.55-2.44-2.46-2.69-2.73-3.14-3.00-2.83
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