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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-2.28 (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 -2.28 suggests that the company is not a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.6   Max: 19.85
Current: -2.28

-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 -2.39.


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 * 1.3971+0.528 * 2.0132+0.404 * 0.6296+0.892 * 0.6193+0.115 * 3.552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8271+4.679 * -0.0648-0.327 * 1.1839
=-2.28

* 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 $11.87 Mil.
Revenue was 5.90882638215 + 4.5634765625 + 7.09797979798 + 8.27914110429 = $25.85 Mil.
Gross Profit was 0.58971871969 + 0.3037109375 + 3.37373737374 + 3.12167689162 = $7.39 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) / (11.8719689622 / 25.8494238469)
=0.64167367 / 0.45927403
=1.3971

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 / 25.8494238469) / (0.482917820868 / 16.0087471734)
=0.28584173 / 0.1419842
=2.0132

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 / 25.8494238469
=0.6193

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 / 25.8494238469)
=2.10966592 / 1.15463425
=1.8271

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 -2.28 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

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
DSRI 1.34691.2130.96051.37350.481.05261.07841.20741.14891.3971
GMI 1.06050.9911.06041.05781.3221.9062.29814.71813.09352.0132
AQI 1.2961.89221.94550.59190.27740.30630.35951.4510.82120.6296
SGI 1.16071.22851.42971.48521.35611.24810.92250.73940.71410.6193
DEPI 1.24741.90812.3882.62692.34762.00812.66933.72113.95483.552
SGAI 1.27641.15221.06131.64331.75161.86542.20411.40261.55021.8271
LVGI 0.64731.19141.35461.15950.58590.53330.54810.93551.59361.1839
TATA 0.10980.12850.0167-0.0777-0.2378-0.1913-0.2031-0.11890.0178-0.0648
M-score -1.26-1.11-1.61-2.18-3.71-2.79-2.87-0.67-1.43-2.28
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