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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-4.77 (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 -4.81 suggests that the company is not a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.69   Max: 19.85
Current: -4.77

-5.69
19.85

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 19.85. The lowest was -5.69. And the median was -2.71.


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 * 1.0235+0.528 * -1.4501+0.404 * 0.4972+0.892 * 0.5859+0.115 * 1.1526
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7208+4.679 * -0.0613-0.327 * 1.281
=-4.81

* 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 $5.92 Mil.
Revenue was 2.4006955885 + 3.38810354323 + 3.31674208145 + 4.1906577693 = $13.30 Mil.
Gross Profit was -3.58868753432 + 0.48008077841 + 0.666063348416 + 0.509056244042 = $-1.93 Mil.
Total Current Assets was $63.74 Mil.
Total Assets was $107.93 Mil.
Property, Plant and Equipment(Net PPE) was $42.74 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General & Admin. Expense(SGA) was $32.42 Mil.
Total Current Liabilities was $13.30 Mil.
Long-Term Debt was $13.13 Mil.
Net Income was -11.64653121 + -4.2986965302 + 0.173755656109 + -8.38608198284 = $-24.16 Mil.
Non Operating Income was -0.000915248032217 + -0.536074903617 + -0.489592760181 + 0.0896091515729 = $-0.94 Mil.
Cash Flow from Operations was -7.29910305693 + 1.05838076005 + -2.64253393665 + -7.71591992374 = $-16.60 Mil.
Accounts Receivable was $9.88 Mil.
Revenue was 5.13544668588 + 5.97058823529 + 4.4603960396 + 7.12738214644 = $22.69 Mil.
Gross Profit was 0.621517771374 + 0.593137254902 + 0.141584158416 + 3.42928786359 = $4.79 Mil.
Total Current Assets was $42.22 Mil.
Total Assets was $64.79 Mil.
Property, Plant and Equipment(Net PPE) was $20.81 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.38 Mil.
Selling, General & Admin. Expense(SGA) was $32.15 Mil.
Total Current Liabilities was $10.51 Mil.
Long-Term Debt was $1.87 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)
=(5.92348526451 / 13.2961989825) / (9.87800192123 / 22.6938131072)
=0.44550215 / 0.4352729
=1.0235

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)
=(0.48008077841 / 22.6938131072) / (-3.58868753432 / 13.2961989825)
=0.21087364 / -0.14541653
=-1.4501

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 - (63.7424492037 + 42.7356763683) / 107.934285191) / (1 - (42.2199807877 + 20.8107588857) / 64.7886647454)
=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
=13.2961989825 / 22.6938131072
=0.5859

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))
=(0.382265566172 / (0.382265566172 + 20.8107588857)) / (0.679386534368 / (0.679386534368 + 42.7356763683))
=0.01803733 / 0.01564864
=1.1526

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)
=(32.4158288574 / 13.2961989825) / (32.1525636149 / 22.6938131072)
=2.43797712 / 1.41679864
=1.7208

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)
=((13.1310635182 + 13.2976386601) / 107.934285191) / ((1.87223823247 + 10.5120076849) / 64.7886647454)
=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
=(-24.1575540669 - -0.936973760257 - -16.5991761573) / 107.934285191
=-0.0613

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 -4.81 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 1.28910.55661.29781.09160.62831.0936
GMI 1.64881.14960.71370.3171.33063.0579
AQI 1.96030.93910.76471.34940.27740.8212
SGI 1.38451.16611.40951.13661.33410.689
DEPI 0.90911.3640.80981.26422.41144.0351
SGAI 1.25660.08751.126814.4041.75671.5664
LVGI 0.86361.38060.77520.6740.58861.5863
TATA -0.2888-0.14880.0990.0505-0.2350.0187
M-score -2.50-3.31-1.59-4.43-3.57-1.51

Neptune Technologies & Bioressources Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 1.20590.92831.36450.62431.06091.08871.23611.04611.36551.0235
GMI 0.41870.57820.791.32971.93712.35225.13993.08271.9829-1.4501
AQI 1.89221.94550.59190.27740.30630.35951.4510.82120.62960.4972
SGI 1.24621.42791.4861.34261.22970.92070.73770.72020.62320.5859
DEPI 2.09632.47222.65412.39752.01942.68523.76293.90413.47561.1526
SGAI 3.30321.92182.0871.75731.87532.21251.42281.54711.8221.7208
LVGI 1.19141.35461.15950.58860.53330.54810.93551.58631.18391.281
TATA 0.0648-0.0355-0.1108-0.2308-0.1849-0.2072-0.12120.0187-0.0646-0.0613
M-score -2.05-2.28-2.55-3.55-2.75-2.85-0.43-1.52-2.33-4.81
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