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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-4.78 (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.

Neptune Technologies & Bioressources Inc has a M-score of -4.84 suggests that the company is not a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.6   Max: 19.85
Current: -4.78

-5.6
19.85

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 19.85. The lowest was -5.60. And the median was -2.40.


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 Neptune Technologies & Bioressources 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 * 1.0166+0.528 * -1.4864+0.404 * 0.4972+0.892 * 0.5814+0.115 * 1.1424
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7239+4.679 * -0.0618-0.327 * 1.281
=-4.84

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $5.88 Mil.
Revenue was 2.38216329125 + 3.4081255771 + 3.29882988299 + 4.13157894737 = $13.22 Mil.
Gross Profit was -3.56098447008 + 0.482917820868 + 0.662466246625 + 0.501879699248 = $-1.91 Mil.
Total Current Assets was $63.25 Mil.
Total Assets was $107.10 Mil.
Property, Plant and Equipment(Net PPE) was $42.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General & Admin. Expense(SGA) was $32.24 Mil.
Total Current Liabilities was $13.19 Mil.
Long-Term Debt was $13.03 Mil.
Net Income was -11.556625193 + -4.32409972299 + 0.172817281728 + -8.26785714286 = $-23.98 Mil.
Non Operating Income was -0.000908182726365 + -0.539242843952 + -0.486948694869 + 0.0883458646617 = $-0.94 Mil.
Cash Flow from Operations was -7.24275724276 + 1.06463527239 + -2.62826282628 + -7.60714285714 = $-16.41 Mil.
Accounts Receivable was $9.94 Mil.
Revenue was 5.17021276596 + 5.90882638215 + 4.5634765625 + 7.09797979798 = $22.74 Mil.
Gross Profit was 0.625725338491 + 0.58971871969 + 0.3037109375 + 3.37373737374 = $4.89 Mil.
Total Current Assets was $42.51 Mil.
Total Assets was $65.23 Mil.
Property, Plant and Equipment(Net PPE) was $20.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.38 Mil.
Selling, General & Admin. Expense(SGA) was $32.16 Mil.
Total Current Liabilities was $10.58 Mil.
Long-Term Debt was $1.88 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)
=(5.87775860503 / 13.2206976987) / (9.94487427466 / 22.7404955086)
=0.44458763 / 0.43732003
=1.0166

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)
=(0.482917820868 / 22.7404955086) / (-3.56098447008 / 13.2206976987)
=0.21516208 / -0.14475187
=-1.4864

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 - (63.2503859777 + 42.4057760421) / 107.101080737) / (1 - (42.5058027079 + 20.9516441006) / 65.2272727273)
=0.01349117 / 0.02713322
=0.4972

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
=13.2206976987 / 22.7404955086
=0.5814

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))
=(0.381996245967 / (0.381996245967 + 20.9516441006)) / (0.675233732614 / (0.675233732614 + 42.4057760421))
=0.01790582 / 0.01567358
=1.1424

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)
=(32.2368592367 / 13.2206976987) / (32.164481539 / 22.7404955086)
=2.43836293 / 1.41441428
=1.7239

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)
=((13.0296975752 + 13.1949868314) / 107.101080737) / ((1.88491295938 + 10.583172147) / 65.2272727273)
=0.24485919 / 0.19114834
=1.281

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
=(-23.9757647771 - -0.938753856886 - -16.4135276538) / 107.101080737
=-0.0618

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.

Neptune Technologies & Bioressources Inc has a M-score of -4.84 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.

Neptune Technologies & Bioressources Inc Annual Data

May04May05May06May07May08Feb10Feb11Feb12Feb13Feb14
DSRI 1.20570.59511.19791.38760.49431.1845
GMI 1.64881.14960.21321.0621.32343.0727
AQI 2.02050.93910.79611.2960.27740.8212
SGI 1.32271.22661.37951.12661.3170.6926
DEPI 0.90911.3640.79891.28132.41144.0351
SGAI 1.25640.087512.66361.28251.751.5714
LVGI 0.86511.45160.76760.64730.58591.5936
TATA -0.2887-0.18080.09880.1127-0.23140.0187
M-score -2.61-3.39-3.95-1.23-3.70-1.42

Neptune Technologies & Bioressources Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 1.2130.96051.37350.481.05261.07841.20741.14891.39711.0166
GMI 0.9911.06041.05781.3221.9062.29814.71813.09352.0132-1.4864
AQI 1.89221.94550.59190.27740.30630.35951.4510.82120.62960.4972
SGI 1.22851.42971.48521.35611.24810.92250.73940.71410.61930.5814
DEPI 1.90812.3882.62692.34762.00812.66933.72113.95483.5521.1424
SGAI 1.15221.06131.64331.75161.86542.20411.40261.55021.82711.7239
LVGI 1.19141.35461.15950.58590.53330.54810.93551.59361.18391.281
TATA 0.12850.0167-0.0777-0.2378-0.1913-0.2031-0.11890.0178-0.0648-0.0618
M-score -1.11-1.61-2.18-3.71-2.79-2.87-0.67-1.43-2.28-4.84
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