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Bowl America Inc (AMEX:BWL.A)
Beneish M-Score
1.72 (As of Today)

Warning Sign:

Beneish M-Score 1.72 higher than -2.22, which implies that it might have manipulated its financial results.

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 Inc has a M-score of 1.72 signals that the company is a manipulator.

BWL.A' s 10-Year Beneish M-Score Range
Min: -3.19   Max: 6.01
Current: 1.72

-3.19
6.01

During the past 13 years, the highest Beneish M-Score of Bowl America Inc was 6.01. The lowest was -3.19. And the median was -2.73.


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 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 * 5.6517+0.528 * 1.0288+0.404 * 1.1299+0.892 * 0.9549+0.115 * 1.0228
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0081+4.679 * -0.0199-0.327 * 1.0439
=1.72

* 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 $0.31 Mil.
Revenue was 4.756 + 7.307 + 5.967 + 4.75 = $22.78 Mil.
Gross Profit was 2.961 + 5.044 + 3.848 + 2.755 = $14.61 Mil.
Total Current Assets was $3.74 Mil.
Total Assets was $34.36 Mil.
Property, Plant and Equipment(Net PPE) was $20.89 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.32 Mil.
Selling, General & Admin. Expense(SGA) was $12.09 Mil.
Total Current Liabilities was $2.98 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.028 + 1.29 + 0.371 + -0.318 = $1.37 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -2.21 + 2.777 + 1.481 + 0.007 = $2.06 Mil.
Accounts Receivable was $0.06 Mil.
Revenue was 4.978 + 7.639 + 6.13 + 5.11 = $23.86 Mil.
Gross Profit was 3.12 + 5.476 + 4.061 + 3.082 = $15.74 Mil.
Total Current Assets was $5.54 Mil.
Total Assets was $36.73 Mil.
Property, Plant and Equipment(Net PPE) was $21.98 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.43 Mil.
Selling, General & Admin. Expense(SGA) was $12.56 Mil.
Total Current Liabilities was $3.05 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)
=(0.313 / 22.78) / (0.058 / 23.857)
=0.01374012 / 0.00243115
=5.6517

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)
=(5.044 / 23.857) / (2.961 / 22.78)
=0.65972251 / 0.64126427
=1.0288

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 - (3.739 + 20.887) / 34.364) / (1 - (5.535 + 21.979) / 36.725)
=0.28337795 / 0.25081007
=1.1299

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
=22.78 / 23.857
=0.9549

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))
=(1.426 / (1.426 + 21.979)) / (1.323 / (1.323 + 20.887))
=0.06092715 / 0.05956776
=1.0228

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)
=(12.086 / 22.78) / (12.556 / 23.857)
=0.53055312 / 0.52630255
=1.0081

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 + 2.983) / 34.364) / ((0 + 3.054) / 36.725)
=0.08680596 / 0.08315861
=1.0439

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
=(1.371 - 0 - 2.055) / 34.364
=-0.0199

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 Inc has a M-score of 1.72 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.

Bowl America Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DSRI 11.23660.202810.53511.17891.62880.44461.23930.18855.6517
GMI 0.99851.01850.9851.01661.03291.03411.01020.98110.98421.0288
AQI 1.00351.03911.68860.86180.91771.08121.16771.13691.09831.1299
SGI 1.00611.05991.05460.94150.98690.9130.97760.9180.980.9549
DEPI 1.12011.01270.84051.04170.97630.99211.06561.05970.99431.0228
SGAI 0.98981.00490.99061.03960.99091.02971.03161.02481.00491.008
LVGI 1.12360.88840.88931.07711.02440.94681.07540.98561.12421.0439
TATA -0.044-0.0157-0.042-0.0063-0.0802-0.0264-0.0482-0.03410.0258-0.0199
M-score -2.70-2.22-3.076.14-2.73-2.04-3.19-2.44-3.131.72

Bowl America Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 01.23931.2430.960510.18850.20780.498215.6517
GMI 0.98580.98120.97030.97050.9830.98420.99961.01351.0271.0288
AQI 1.11041.13691.20831.21011.20351.09831.10051.051.05691.1299
SGI 0.98110.9180.90870.8990.91380.980.98080.98630.97640.9549
DEPI 1.12841.0591.07971.02531.00320.99490.98710.99160.99551.0228
SGAI 1.02871.02481.02711.02270.99771.00481.00271.01121.02621.0081
LVGI 1.00520.98561.02880.88341.14941.12421.00831.20250.9661.0439
TATA -0.0383-0.0342-0.0396-0.0401-0.04370.02580.04110.03570.045-0.0199
M-score -3.55-2.44-2.46-2.69-2.74-3.13-3.00-2.83-2.251.72
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