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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-1.33 (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 -1.51 signals that the company is a manipulator.

NEPT' s Beneish M-Score Range Over the Past 10 Years
Min: -6.48   Max: 19.85
Current: -1.33

-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 -2.53.


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 * 0.7081+0.528 * -2.3079+0.404 * 6.2775+0.892 * 1.9511+0.115 * 0.8335
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3323+4.679 * 0.0112-0.327 * 1.4504
=-1.51

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was $6.68 Mil.
Revenue was 8.69602162997 + 7.26969631079 + 4.15693952858 + 3.33003727086 = $23.45 Mil.
Gross Profit was 2.719196601 + 2.22077263173 + 1.2433165148 + 0.528637712026 = $6.71 Mil.
Total Current Assets was $29.63 Mil.
Total Assets was $77.79 Mil.
Property, Plant and Equipment(Net PPE) was $35.13 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.09 Mil.
Selling, General & Admin. Expense(SGA) was $10.70 Mil.
Total Current Liabilities was $10.97 Mil.
Long-Term Debt was $17.34 Mil.
Net Income was -2.95403630745 + 0.445749075886 + -1.33745010919 + -1.42618087777 = $-5.27 Mil.
Non Operating Income was -0.359984550019 + 0.126839167935 + 0.375781308833 + 0.902867574352 = $1.05 Mil.
Cash Flow from Operations was -0.905368868289 + -2.70058708415 + 0.219143007757 + -3.80390963718 = $-7.19 Mil.
Accounts Receivable was $4.84 Mil.
Revenue was 2.22158344284 + 3.21705736459 + 4.18101545254 + 2.4006955885 = $12.02 Mil.
Gross Profit was -0.691524310118 + -4.0467237379 + 0.387637969095 + -3.58868753432 = $-7.94 Mil.
Total Current Assets was $36.22 Mil.
Total Assets was $76.59 Mil.
Property, Plant and Equipment(Net PPE) was $38.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.88 Mil.
Selling, General & Admin. Expense(SGA) was $16.50 Mil.
Total Current Liabilities was $8.41 Mil.
Long-Term Debt was $10.81 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)
=(6.68211664735 / 23.4526947402) / (4.83656373193 / 12.0203518485)
=0.28491893 / 0.40236457
=0.7081

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)
=(-7.93929761324 / 12.0203518485) / (6.71192345956 / 23.4526947402)
=-0.66048796 / 0.28618986
=-2.3079

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 - (29.6261104674 + 35.1270760912) / 77.7860177675) / (1 - (36.2155059133 + 38.3303219448) / 76.5900131406)
=0.16754722 / 0.02668997
=6.2775

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
=23.4526947402 / 12.0203518485
=1.9511

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))
=(1.88041966187 / (1.88041966187 + 38.3303219448)) / (2.08791914352 / (2.08791914352 + 35.1270760912))
=0.04676411 / 0.05610424
=0.8335

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)
=(10.6984397208 / 23.4526947402) / (16.5023462256 / 12.0203518485)
=0.45617102 / 1.37286715
=0.3323

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)
=((17.3449208188 + 10.9679412901) / 77.7860177675) / ((10.8097897503 + 8.41080814717) / 76.5900131406)
=0.36398395 / 0.25095436
=1.4504

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
=(-5.27191821853 - 1.0455035011 - -7.19072258186) / 77.7860177675
=0.0112

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 -1.51 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.

Neptune Technologies & Bioressources Inc Annual Data

May06May07May08Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.20570.59511.19791.38670.49621.18081.28141.2194
GMI 1.64881.14960.71370.3171.33063.0579-0.2431-2.636
AQI 2.02050.93910.79611.2960.27740.82121.03978.6017
SGI 1.38451.16611.40951.13661.33410.6890.68341.3605
DEPI 0.90911.3640.71421.43342.41144.03510.26690.6599
SGAI 1.25660.08751.126814.4041.75671.56640.87610.4131
LVGI 0.86511.45160.76760.64730.58591.59360.93721.5342
TATA -0.2888-0.14880.10310.0505-0.2350.0187-0.1610.0052
M-score -2.55-3.30-1.66-4.15-3.69-1.43-3.94-0.89

Neptune Technologies & Bioressources Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 1.13291.371.02750.92871.23620.63170.99290.70781.28850.7081
GMI 3.09291.9996-1.4723-0.655-0.2505-0.21510.49250.6998-2.6395-2.3079
AQI 0.82120.62960.49720.61981.03971.81881.55611.10058.60176.2775
SGI 0.71810.62120.58360.66110.70840.74980.97390.97781.28751.9511
DEPI 3.90413.47561.15260.43290.25820.18570.29760.49640.67790.8335
SGAI 1.55171.82811.72741.50260.9420.65030.39080.44040.39850.3323
LVGI 1.59361.18391.2810.99830.93721.21970.99591.11881.53421.4504
TATA 0.0187-0.0998-0.0969-0.0873-0.1811-0.1086-0.041-0.0905-0.00440.0112
M-score -1.44-2.48-4.99-4.43-4.07-3.97-2.72-3.31-0.94-1.51
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