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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-0.27 (As of Today)

Warning Sign:

Beneish M-Score -0.27 higher than -2.22, which implies that it might have manipulated its financial results.

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 -0.39 signals that the company is a manipulator.

NEPT' s Beneish M-Score Range Over the Past 10 Years
Min: -5.8   Max: 19.85
Current: -0.27

-5.8
19.85

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 19.85. The lowest was -5.80. 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 * 0.4449+0.528 * -1.0482+0.404 * 8.2165+0.892 * 2.2425+0.115 * 0.8734
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.3897+4.679 * -0.0586-0.327 * 1.4874
=-0.39

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $5.71 Mil.
Revenue was 8.91675642407 + 8.69602162997 + 7.26969631079 + 4.15693952858 = $29.04 Mil.
Gross Profit was 1.99338359748 + 2.719196601 + 2.22077263173 + 1.2433165148 = $8.18 Mil.
Total Current Assets was $27.06 Mil.
Total Assets was $74.91 Mil.
Property, Plant and Equipment(Net PPE) was $34.93 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.24 Mil.
Selling, General & Admin. Expense(SGA) was $10.87 Mil.
Total Current Liabilities was $11.58 Mil.
Long-Term Debt was $15.60 Mil.
Net Income was -0.916294814587 + -2.95403630745 + 0.445749075886 + -1.33745010919 = $-4.76 Mil.
Non Operating Income was 0.277735036159 + -0.359984550019 + 0.126839167935 + 0.375781308833 = $0.42 Mil.
Cash Flow from Operations was 2.59347591937 + -0.905368868289 + -2.70058708415 + 0.219143007757 = $-0.79 Mil.
Accounts Receivable was $5.73 Mil.
Revenue was 3.33003727086 + 2.22158344284 + 3.21705736459 + 4.18101545254 = $12.95 Mil.
Gross Profit was 0.528637712026 + -0.691524310118 + -4.0467237379 + 0.387637969095 = $-3.82 Mil.
Total Current Assets was $31.01 Mil.
Total Assets was $67.61 Mil.
Property, Plant and Equipment(Net PPE) was $35.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.95 Mil.
Selling, General & Admin. Expense(SGA) was $12.44 Mil.
Total Current Liabilities was $7.13 Mil.
Long-Term Debt was $9.36 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)
=(5.71395599323 / 29.0394138934) / (5.72754240511 / 12.9496935308)
=0.19676554 / 0.44229173
=0.4449

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)
=(-3.8219723669 / 12.9496935308) / (8.17666934501 / 29.0394138934)
=-0.29513999 / 0.28157143
=-1.0482

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 - (27.0557008771 + 34.9330666256) / 74.9099861517) / (1 - (31.011637636 + 35.1783676884) / 67.609340534)
=0.17248994 / 0.02099318
=8.2165

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
=29.0394138934 / 12.9496935308
=2.2425

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))
=(1.95236844652 / (1.95236844652 + 35.1783676884)) / (2.23789300953 / (2.23789300953 + 34.9330666256))
=0.05258092 / 0.06020541
=0.8734

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)
=(10.8706653148 / 29.0394138934) / (12.4403376875 / 12.9496935308)
=0.37434176 / 0.96066657
=0.3897

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)
=((15.5954762271 + 11.5756270195) / 74.9099861517) / ((9.36031033696 + 7.12634061003) / 67.609340534)
=0.3627167 / 0.24385168
=1.4874

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
=(-4.76203215535 - 0.420370962909 - -0.793337025309) / 74.9099861517
=-0.0586

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 -0.39 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 local exchange's currency.

Neptune Technologies & Bioressources Inc Annual Data

May07May08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
DSRI 1.20570.59511.19791.38760.49431.18451.28141.2194
GMI 1.64881.14960.21321.0621.32343.0727-0.2431-2.636
AQI 2.02050.93910.79611.2960.27740.82121.03978.6017
SGI 1.38451.16611.40951.13581.33930.68680.68341.3605
DEPI 0.90911.3640.79891.28132.41144.03510.26690.6599
SGAI 1.25640.087512.66361.28251.751.57140.91660.3948
LVGI 0.86511.45160.76760.64730.58591.59360.93721.5342
TATA -0.2887-0.18080.09880.1127-0.23140.0187-0.16160.0052
M-score -2.55-3.44-3.92-1.22-3.68-1.42-3.95-0.89

Neptune Technologies & Bioressources Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 1.371.02750.92871.23620.63170.99290.70781.28850.70810.4449
GMI 1.9996-1.4723-0.655-0.2505-0.21510.49250.6998-2.6395-2.3079-1.0482
AQI 0.62960.49720.61981.03971.81881.55611.10058.60176.27758.2165
SGI 0.62120.58360.66110.70840.74980.97390.97781.28751.95112.2425
DEPI 3.47561.15260.43290.25820.18570.29760.49640.67790.83350.8734
SGAI 1.82811.72741.50260.9420.65030.39410.44420.40230.33540.3897
LVGI 1.18391.2810.99830.93721.21970.99591.11881.53421.45041.4874
TATA -0.0998-0.0969-0.0873-0.1811-0.1086-0.0411-0.0906-0.00440.0112-0.0586
M-score -2.48-4.99-4.43-4.07-3.97-2.72-3.31-0.94-1.51-0.39
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