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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-2.38 (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 -2.38 suggests that the company is not a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.88   Max: 19.82
Current: -2.38

-5.88
19.82

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 19.82. The lowest was -5.88. 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 * 1.2945+0.528 * 1.9965+0.404 * 0.6296+0.892 * 0.6213+0.115 * 3.552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8212+4.679 * -0.0648-0.327 * 1.1839
=-2.38

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

This Year (May14) TTM:Last Year (May13) TTM:
Accounts Receivable was $10.27 Mil.
Revenue was 3.4081255771 + 3.29882988299 + 4.13157894737 + 5.17021276596 = $16.01 Mil.
Gross Profit was 0.482917820868 + 0.662466246625 + 0.501879699248 + 0.625725338491 = $2.27 Mil.
Total Current Assets was $74.90 Mil.
Total Assets was $117.73 Mil.
Property, Plant and Equipment(Net PPE) was $41.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.36 Mil.
Selling, General & Admin. Expense(SGA) was $33.77 Mil.
Total Current Liabilities was $14.85 Mil.
Long-Term Debt was $9.38 Mil.
Net Income was -4.32409972299 + 0.172817281728 + -8.26785714286 + -3.45261121857 = $-15.87 Mil.
Non Operating Income was -0.539242843952 + -0.486948694869 + 0.0883458646617 + 0.112185686654 = $-0.83 Mil.
Cash Flow from Operations was 1.06463527239 + -2.62826282628 + -7.60714285714 + 1.75531914894 = $-7.42 Mil.
Accounts Receivable was $12.77 Mil.
Revenue was 5.90688651794 + 4.3994140625 + 7.17777777778 + 8.28118609407 = $25.77 Mil.
Gross Profit was 0.586808923375 + 0.1396484375 + 3.45353535354 + 3.12372188139 = $7.30 Mil.
Total Current Assets was $46.13 Mil.
Total Assets was $63.46 Mil.
Property, Plant and Equipment(Net PPE) was $15.86 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.50 Mil.
Selling, General & Admin. Expense(SGA) was $29.85 Mil.
Total Current Liabilities was $9.18 Mil.
Long-Term Debt was $1.85 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)
=(10.2723915051 / 16.0087471734) / (12.7720659554 / 25.7652644523)
=0.64167367 / 0.49570871
=1.2945

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)
=(0.662466246625 / 25.7652644523) / (0.482917820868 / 16.0087471734)
=0.28347136 / 0.1419842
=1.9965

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 - (74.9021237304 + 41.0997229917) / 117.729455217) / (1 - (46.1270611057 + 15.8564500485) / 63.462657614)
=0.01467439 / 0.02330735
=0.6296

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
=16.0087471734 / 25.7652644523
=0.6213

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))
=(0.500668940805 / (0.500668940805 + 15.8564500485)) / (0.357249009407 / (0.357249009407 + 41.0997229917))
=0.03060863 / 0.00861734
=3.552

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)
=(33.7731082875 / 16.0087471734) / (29.8466300045 / 25.7652644523)
=2.10966592 / 1.15840573
=1.8212

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)
=((9.3758079409 + 14.8476454294) / 117.729455217) / ((1.85063045587 + 9.17846750727) / 63.462657614)
=0.20575525 / 0.17378878
=1.1839

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
=(-15.8717508027 - -0.825659987506 - -7.4154512621) / 117.729455217
=-0.0648

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 -2.38 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 1.19750.66891.20371.36730.75472.5085
GMI 1.64881.14960.71370.3171.33063.0579
AQI 1.96030.93910.76471.34940.27740.8212
SGI 1.32271.22661.37951.12731.31190.6948
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 -2.64-3.15-1.71-4.18-3.48-0.20

Neptune Technologies & Bioressources Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 1.32621.33861.03131.35510.73320.98760.94141.11452.43361.2945
GMI 0.31030.4160.57340.7871.32941.92412.33395.1233.08291.9965
AQI 1.34941.89221.94550.59190.27740.30630.35951.4510.82120.6296
SGI 1.16231.23161.43521.4971.35041.24240.91790.73010.71610.6213
DEPI 1.23142.10262.54692.6572.34762.00812.66933.72113.95483.552
SGAI 14.32793.33451.94272.10041.75891.8742.21521.42051.54571.8212
LVGI 0.6741.19141.35461.15950.58860.53330.54810.93551.58631.1839
TATA 0.05320.0652-0.0363-0.1115-0.2346-0.188-0.2067-0.12280.0178-0.0648
M-score -4.17-1.94-2.18-2.56-3.47-2.83-3.00-0.57-0.25-2.38
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