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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-4.06 (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 -4.13 suggests that the company is not a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.52   Max: 19.85
Current: -4.06

-5.52
19.85

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 19.85. The lowest was -5.52. And the median was -2.92.


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 * 0.6316+0.528 * -0.215+0.404 * 1.8188+0.892 * 0.7498+0.115 * 0.1857
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6147+4.679 * -0.144-0.327 * 1.2197
=-4.13

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

This Year (May15) TTM:Last Year (May14) TTM:
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 $15.60 Mil.
Total Current Liabilities was $8.41 Mil.
Long-Term Debt was $10.81 Mil.
Net Income was -3.64159001314 + -7.37659012721 + -1.1770419426 + -11.64653121 = $-23.84 Mil.
Non Operating Income was 1.2458935611 + 8.12705016401 + 1.02781456954 + -0.000915248032217 = $10.40 Mil.
Cash Flow from Operations was -2.43101182654 + -5.63405072406 + -7.84988962472 + -7.29910305693 = $-23.21 Mil.
Accounts Receivable was $10.21 Mil.
Revenue was 3.38810354323 + 3.31674208145 + 4.1906577693 + 5.13544668588 = $16.03 Mil.
Gross Profit was 0.48008077841 + 0.666063348416 + 0.509056244042 + 0.621517771374 = $2.28 Mil.
Total Current Assets was $74.46 Mil.
Total Assets was $117.04 Mil.
Property, Plant and Equipment(Net PPE) was $40.86 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.36 Mil.
Selling, General & Admin. Expense(SGA) was $33.85 Mil.
Total Current Liabilities was $14.76 Mil.
Long-Term Debt was $9.32 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)
=(4.83656373193 / 12.0203518485) / (10.2120433266 / 16.0309500799)
=0.40236457 / 0.63702047
=0.6316

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)
=(-4.0467237379 / 16.0309500799) / (-0.691524310118 / 12.0203518485)
=0.14202016 / -0.66048796
=-0.215

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 - (36.2155059133 + 38.3303219448) / 76.5900131406) / (1 - (74.4620892234 + 40.8582706077) / 117.037818983)
=0.02668997 / 0.01467439
=1.8188

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
=12.0203518485 / 16.0309500799
=0.7498

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))
=(0.357875990025 / (0.357875990025 + 40.8582706077)) / (1.88041966187 / (1.88041966187 + 38.3303219448))
=0.00868291 / 0.04676411
=0.1857

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)
=(15.6005763179 / 12.0203518485) / (33.8471844637 / 16.0309500799)
=1.29784689 / 2.11136485
=0.6147

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)
=((10.8097897503 + 8.41080814717) / 76.5900131406) / ((9.32072700569 + 14.760418579) / 117.037818983)
=0.25095436 / 0.20575525
=1.2197

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
=(-23.8417532929 - 10.3998430466 - -23.2140552323) / 76.5900131406
=-0.144

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 -4.13 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

May05May06May07May08Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 1.20570.59511.29781.09160.62831.09361.2814
GMI 1.64881.14960.71370.3171.33063.0579-0.2431
AQI 2.02050.93910.76471.34940.27740.82121.0397
SGI 1.38451.16611.40951.13661.33410.6890.6834
DEPI 0.90911.3640.80981.26422.41144.03510.2669
SGAI 1.25640.08751.126814.4041.75671.56640.8761
LVGI 0.86511.38060.77520.6740.58861.58630.9372
TATA -0.2887-0.14880.0990.0505-0.2350.0187-0.161
M-score -2.55-3.27-1.59-4.43-3.57-1.51-3.94

Neptune Technologies & Bioressources Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
DSRI 0.62431.06091.08871.23611.04611.36551.02350.9131.2360.6316
GMI 1.32971.93712.35225.13993.08271.9829-1.4501-0.6104-0.2502-0.215
AQI 0.27740.30630.35951.4510.82120.62960.49720.61981.03971.8188
SGI 1.34261.22970.92070.73770.72020.62320.58590.67250.70850.7498
DEPI 2.39752.01942.68523.76293.90413.47561.15260.43290.25820.1857
SGAI 1.75731.87532.21251.42281.54711.8221.72081.47720.90430.6147
LVGI 0.58860.53330.54810.93551.58631.18391.2810.99830.93721.2197
TATA -0.2308-0.1849-0.2072-0.12120.0187-0.0646-0.0613-0.0022-0.169-0.144
M-score -3.55-2.75-2.85-0.43-1.52-2.33-4.81-4.01-4.01-4.13
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