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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-3.08 (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 -3.27 suggests that the company is not a manipulator.

NEPT' s Beneish M-Score Range Over the Past 10 Years
Min: -6.48   Max: 19.85
Current: -3.08

-6.48
19.85

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 19.85. The lowest was -6.48. And the median was -2.57.


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 * 0.7078+0.528 * 0.6998+0.404 * 1.1005+0.892 * 0.9778+0.115 * 0.4964
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.4066+4.679 * -0.083-0.327 * 1.1188
=-3.27

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

This Year (Nov15) TTM:Last Year (Nov14) TTM:
Accounts Receivable was $4.71 Mil.
Revenue was 4.15693952858 + 3.33003727086 + 2.22158344284 + 3.21705736459 = $12.93 Mil.
Gross Profit was 1.2433165148 + 0.528637712026 + -0.691524310118 + -4.0467237379 = $-2.97 Mil.
Total Current Assets was $29.24 Mil.
Total Assets was $65.17 Mil.
Property, Plant and Equipment(Net PPE) was $34.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.90 Mil.
Selling, General & Admin. Expense(SGA) was $10.82 Mil.
Total Current Liabilities was $8.13 Mil.
Long-Term Debt was $8.62 Mil.
Net Income was -1.33745010919 + -1.42618087777 + -3.64159001314 + -7.37659012721 = $-13.78 Mil.
Non Operating Income was 0.375781308833 + 0.902867574352 + 1.2458935611 + 0.750460036803 = $3.28 Mil.
Cash Flow from Operations was 0.219143007757 + -3.80390963718 + -2.43101182654 + -5.63405072406 = $-11.65 Mil.
Accounts Receivable was $6.80 Mil.
Revenue was 4.18101545254 + 2.4006955885 + 3.38810354323 + 3.24886877828 = $13.22 Mil.
Gross Profit was 0.387637969095 + -3.58868753432 + 0.48008077841 + 0.598190045249 = $-2.12 Mil.
Total Current Assets was $53.58 Mil.
Total Assets was $97.45 Mil.
Property, Plant and Equipment(Net PPE) was $42.07 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.12 Mil.
Selling, General & Admin. Expense(SGA) was $27.23 Mil.
Total Current Liabilities was $9.65 Mil.
Long-Term Debt was $12.74 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)
=(4.70893892612 / 12.9256176069) / (6.80353200883 / 13.2186833626)
=0.36431056 / 0.5146906
=0.7078

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)
=(0.528637712026 / 13.2186833626) / (1.2433165148 / 12.9256176069)
=-0.16058927 / -0.22948952
=0.6998

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 - (29.243165901 + 34.6057685067) / 65.1720762106) / (1 - (53.5814569536 + 42.0715231788) / 97.4507726269)
=0.02030228 / 0.01844821
=1.1005

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
=12.9256176069 / 13.2186833626
=0.9778

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))
=(1.11784342698 / (1.11784342698 + 42.0715231788)) / (1.90359778554 / (1.90359778554 + 34.6057685067))
=0.02588238 / 0.05213998
=0.4964

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)
=(10.8247311687 / 12.9256176069) / (27.2293647173 / 13.2186833626)
=0.83746336 / 2.05991504
=0.4066

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)
=((8.62414338429 + 8.13088334965) / 65.1720762106) / ((12.7426048565 + 9.65121412804) / 97.4507726269)
=0.25708904 / 0.22979622
=1.1188

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
=(-13.7818111273 - 3.27500248109 - -11.64982918) / 65.1720762106
=-0.083

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 -3.27 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

May05May06May07May08Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 1.20570.59511.19791.38760.49431.18451.2814
GMI 1.64881.14960.21321.0621.32343.0727-0.2431
AQI 2.02050.93910.79611.2960.27740.82121.0397
SGI 1.38451.16611.40951.13581.33930.68680.6834
DEPI 0.90911.3640.79891.28132.41144.03510.2669
SGAI 1.25640.087512.66361.28251.751.57140.8761
LVGI 0.86511.45160.76760.64730.58591.59360.9372
TATA -0.2887-0.18080.09880.1127-0.23140.0187-0.161
M-score -2.55-3.44-3.92-1.22-3.68-1.42-3.94

Neptune Technologies & Bioressources Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
DSRI 1.08311.21631.13291.371.02750.92871.23620.63170.99290.7078
GMI 2.31494.59243.09291.9996-1.4723-0.655-0.2505-0.21510.49250.6998
AQI 0.35951.4510.82120.62960.49720.61981.03971.81881.55611.1005
SGI 0.92540.74970.71810.62120.58360.66110.70840.74980.97390.9778
DEPI 2.68523.76293.90413.47561.15260.43290.25820.18570.29760.4964
SGAI 2.20111.41.55171.82811.72741.50260.90450.61470.36230.4066
LVGI 0.54810.93551.59361.18391.2810.99830.93721.21970.99591.1188
TATA -0.2036-0.11730.0187-0.0998-0.0969-0.0873-0.1805-0.1021-0.0338-0.083
M-score -2.85-0.70-1.44-2.48-4.99-4.43-4.06-3.93-2.68-3.27
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