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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-3.96 (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 -4.01 suggests that the company is not a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.52   Max: 19.85
Current: -3.96

-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 -2.73.


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 * 0.913+0.528 * -0.6104+0.404 * 0.6198+0.892 * 0.6725+0.115 * 0.4329
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4772+4.679 * -0.0022-0.327 * 0.9983
=-4.01

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $6.80 Mil.
Revenue was 4.18101545254 + 2.4006955885 + 3.38810354323 + 3.31674208145 = $13.29 Mil.
Gross Profit was 0.387637969095 + -3.58868753432 + 0.48008077841 + 0.666063348416 = $-2.05 Mil.
Total Current Assets was $53.58 Mil.
Total Assets was $97.45 Mil.
Property, Plant and Equipment(Net PPE) was $42.07 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.12 Mil.
Selling, General & Admin. Expense(SGA) was $27.23 Mil.
Total Current Liabilities was $9.65 Mil.
Long-Term Debt was $12.74 Mil.
Net Income was -1.1770419426 + -11.64653121 + -4.2986965302 + 0.173755656109 = $-16.95 Mil.
Non Operating Income was 1.02781456954 + -0.000915248032217 + -0.536074903617 + -0.489592760181 = $0.00 Mil.
Cash Flow from Operations was -7.84988962472 + -7.29910305693 + 1.05838076005 + -2.64253393665 = $-16.73 Mil.
Accounts Receivable was $11.08 Mil.
Revenue was 4.1906577693 + 5.13544668588 + 5.97058823529 + 4.4603960396 = $19.76 Mil.
Gross Profit was 0.509056244042 + 0.621517771374 + 0.593137254902 + 0.141584158416 = $1.87 Mil.
Total Current Assets was $32.29 Mil.
Total Assets was $60.76 Mil.
Property, Plant and Equipment(Net PPE) was $26.65 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.30 Mil.
Selling, General & Admin. Expense(SGA) was $27.41 Mil.
Total Current Liabilities was $12.09 Mil.
Long-Term Debt was $1.90 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)
=(6.80353200883 / 13.2865566657) / (11.081029552 / 19.7570887301)
=0.51206134 / 0.56086348
=0.913

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)
=(-3.58868753432 / 19.7570887301) / (0.387637969095 / 13.2865566657)
=0.09441145 / -0.1546605
=-0.6104

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 - (53.5814569536 + 42.0715231788) / 97.4507726269) / (1 - (32.2926596759 + 26.6549094376) / 60.7559580553)
=0.01844821 / 0.0297648
=0.6198

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
=13.2865566657 / 19.7570887301
=0.6725

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))
=(0.302009545488 / (0.302009545488 + 26.6549094376)) / (1.11784342698 / (1.11784342698 + 42.0715231788))
=0.01120341 / 0.02588238
=0.4329

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)
=(27.2293647173 / 13.2865566657) / (27.409365479 / 19.7570887301)
=2.04939213 / 1.38731803
=1.4772

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)
=((12.7426048565 + 9.65121412804) / 97.4507726269) / ((1.89990467112 + 12.0857959962) / 60.7559580553)
=0.22979622 / 0.23019472
=0.9983

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
=(-16.9485140267 - 0.00123165770654 - -16.7331458583) / 97.4507726269
=-0.0022

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 -4.01 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 1.20570.59511.29781.09160.62831.0936
GMI 1.64881.14960.71370.3171.33063.0579
AQI 2.02050.93910.76471.34940.27740.8212
SGI 1.38451.16611.40951.13661.33410.689
DEPI 0.90911.3640.80981.26422.41144.0351
SGAI 1.25640.08751.126814.4041.75671.5664
LVGI 0.86511.38060.77520.6740.58861.5863
TATA -0.2887-0.14880.0990.0505-0.2350.0187
M-score -2.55-3.27-1.59-4.43-3.57-1.51

Neptune Technologies & Bioressources Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 0.92831.36450.62431.06091.08871.23611.04611.36551.02350.913
GMI 0.57820.791.32971.93712.35225.13993.08271.9829-1.4501-0.6104
AQI 1.94550.59190.27740.30630.35951.4510.82120.62960.49720.6198
SGI 1.42791.4861.34261.22970.92070.73770.72020.62320.58590.6725
DEPI 2.47222.65412.39752.01942.68523.76293.90413.47561.15260.4329
SGAI 1.92182.0871.75731.87532.21251.42281.54711.8221.72081.4772
LVGI 1.35461.15950.58860.53330.54810.93551.58631.18391.2810.9983
TATA -0.0355-0.1108-0.2308-0.1849-0.2072-0.12120.0187-0.0646-0.0613-0.0022
M-score -2.28-2.55-3.55-2.75-2.85-0.43-1.52-2.33-4.81-4.01
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