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Bowl America Inc (AMEX:BWL.A)
Beneish M-Score
-2.63 (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 Inc has a M-score of -2.63 suggests that the company is not a manipulator.

BWL.A' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 6.01
Current: -2.63

-3.83
6.01

During the past 13 years, the highest Beneish M-Score of Bowl America Inc 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 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+0.528 * 0.9914+0.404 * 1.064+0.892 * 0.9943+0.115 * 1.0258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.988+4.679 * -0.0323-0.327 * 1.0486
=-2.63

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $0.01 Mil.
Revenue was 7.516 + 5.97 + 4.629 + 4.756 = $22.87 Mil.
Gross Profit was 5.246 + 3.939 + 2.665 + 2.961 = $14.81 Mil.
Total Current Assets was $4.60 Mil.
Total Assets was $34.51 Mil.
Property, Plant and Equipment(Net PPE) was $20.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.26 Mil.
Selling, General & Admin. Expense(SGA) was $12.03 Mil.
Total Current Liabilities was $4.69 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 1.269 + 0.482 + -0.315 + 0.028 = $1.46 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2.778 + 1.65 + 0.359 + -2.21 = $2.58 Mil.
Accounts Receivable was $0.00 Mil.
Revenue was 7.307 + 5.967 + 4.75 + 4.978 = $23.00 Mil.
Gross Profit was 5.044 + 3.848 + 2.755 + 3.12 = $14.77 Mil.
Total Current Assets was $6.52 Mil.
Total Assets was $37.19 Mil.
Property, Plant and Equipment(Net PPE) was $21.09 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.34 Mil.
Selling, General & Admin. Expense(SGA) was $12.24 Mil.
Total Current Liabilities was $4.82 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)
=(0.014 / 22.871) / (0 / 23.002)
=0.00061213 / 0
=1

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)
=(3.939 / 23.002) / (5.246 / 22.871)
=0.64198765 / 0.64758865
=0.9914

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 - (4.596 + 20.45) / 34.505) / (1 - (6.517 + 21.088) / 37.186)
=0.27413418 / 0.25765073
=1.064

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
=22.871 / 23.002
=0.9943

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))
=(1.335 / (1.335 + 21.088)) / (1.26 / (1.26 + 20.45))
=0.05953708 / 0.05803777
=1.0258

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)
=(12.025 / 22.871) / (12.241 / 23.002)
=0.525775 / 0.53217112
=0.988

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 + 4.691) / 34.505) / ((0 + 4.821) / 37.186)
=0.13595131 / 0.12964557
=1.0486

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
=(1.464 - 0 - 2.577) / 34.505
=-0.0323

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 -2.63 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 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.960510.18850.20780.498215.65175.07152.26811
GMI 0.97050.9830.98420.99961.01351.0271.02881.02371.01040.9914
AQI 1.21011.20351.09831.10051.051.05691.12991.10751.08511.064
SGI 0.8990.91380.980.98080.98630.97640.95490.96430.97120.9943
DEPI 1.02531.00320.99490.98710.99160.99551.02281.03431.04831.0258
SGAI 1.02270.99771.00481.00271.01121.02621.00811.00591.00150.988
LVGI 0.88341.14941.12421.00831.20250.9661.04391.08491.09351.0486
TATA -0.0401-0.04370.02580.04110.03570.045-0.0199-0.031-0.0328-0.0323
M-score -2.69-2.74-3.13-3.00-2.83-2.251.721.12-1.48-2.63
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