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

Warning Sign:

Beneish M-Score 1.11 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 1.11 signals that the company is a manipulator.

BWL.A' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 6.01
Current: 1.11

-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 * 5.0549+0.528 * 1.0254+0.404 * 1.1075+0.892 * 0.9675+0.115 * 1.0343
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0067+4.679 * -0.031-0.327 * 1.0849
=1.11

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $0.31 Mil.
Revenue was 4.629 + 4.756 + 7.307 + 5.967 = $22.66 Mil.
Gross Profit was 2.665 + 2.961 + 5.044 + 3.848 = $14.52 Mil.
Total Current Assets was $2.73 Mil.
Total Assets was $33.30 Mil.
Property, Plant and Equipment(Net PPE) was $20.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.29 Mil.
Selling, General & Admin. Expense(SGA) was $12.04 Mil.
Total Current Liabilities was $3.18 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.315 + 0.028 + 1.29 + 0.371 = $1.37 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.359 + -2.21 + 2.777 + 1.481 = $2.41 Mil.
Accounts Receivable was $0.06 Mil.
Revenue was 4.75 + 4.731 + 7.734 + 6.205 = $23.42 Mil.
Gross Profit was 2.755 + 3.026 + 5.519 + 4.087 = $15.39 Mil.
Total Current Assets was $4.48 Mil.
Total Assets was $35.47 Mil.
Property, Plant and Equipment(Net PPE) was $21.67 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.39 Mil.
Selling, General & Admin. Expense(SGA) was $12.36 Mil.
Total Current Liabilities was $3.13 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 / 22.659) / (0.064 / 23.42)
=0.0138135 / 0.00273271
=5.0549

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)
=(2.961 / 23.42) / (2.665 / 22.659)
=0.65700256 / 0.64071671
=1.0254

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 - (2.732 + 20.878) / 33.304) / (1 - (4.48 + 21.669) / 35.472)
=0.29107615 / 0.26282702
=1.1075

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
=22.659 / 23.42
=0.9675

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))
=(1.391 / (1.391 + 21.669)) / (1.293 / (1.293 + 20.878))
=0.0603209 / 0.05831943
=1.0343

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)
=(12.037 / 22.659) / (12.358 / 23.42)
=0.5312238 / 0.52766866
=1.0067

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 + 3.183) / 33.304) / ((0 + 3.125) / 35.472)
=0.09557411 / 0.08809765
=1.0849

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
=(1.374 - 0 - 2.407) / 33.304
=-0.031

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 1.11 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 11.23660.202810.53511.17891.62880.44461.22180.19125.6517
GMI 0.99851.01850.9851.01661.03291.03411.01020.98670.97861.0288
AQI 1.00351.03911.68860.86180.91771.08121.16771.13691.09831.1299
SGI 1.00611.05991.05460.94150.98690.9130.97760.93120.96610.9549
DEPI 1.12011.01270.84051.04170.97630.99211.06561.05970.99431.0228
SGAI 0.98981.00490.99061.03960.99091.02971.03161.02761.00221.008
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 -2.70-2.22-3.076.14-2.73-2.04-3.19-2.44-3.151.72

Bowl America Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.22181.22120.940510.19120.21220.512115.65175.0549
GMI 0.98680.97750.97930.99320.97870.99061.00121.0121.02881.0254
AQI 1.13691.20831.21011.20351.09831.10051.051.05691.12991.1075
SGI 0.93120.92490.91810.9370.96610.96050.95960.94210.95490.9675
DEPI 1.0591.07971.02531.00320.99490.98710.99160.99551.02281.0343
SGAI 1.02761.03081.02721.00181.00220.99831.00541.02111.0081.0067
LVGI 0.98561.02880.88341.14941.12421.00831.20250.9661.04391.0849
TATA -0.0342-0.0396-0.0401-0.04370.02580.04110.03570.045-0.0199-0.031
M-score -2.44-2.46-2.69-2.71-3.15-3.02-2.85-2.281.721.11
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