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Neptune Technologies & Bioressources Inc (NAS:NEPT)
Beneish M-Score
-3.86 (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: -5.26   Max: 16.76
Current: -3.86

-5.26
16.76

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc was 16.76. The lowest was -5.26. And the median was -3.31.


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 * 1.2362+0.528 * -0.2505+0.404 * 1.0397+0.892 * 0.7084+0.115 * 0.2582
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9045+4.679 * -0.169-0.327 * 0.9372
=-4.01

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

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was $3.91 Mil.
Revenue was 3.21705736459 + 4.18101545254 + 2.4006955885 + 3.38810354323 = $13.19 Mil.
Gross Profit was -4.0467237379 + 0.387637969095 + -3.58868753432 + 0.48008077841 = $-6.77 Mil.
Total Current Assets was $40.24 Mil.
Total Assets was $79.25 Mil.
Property, Plant and Equipment(Net PPE) was $37.50 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.49 Mil.
Selling, General & Admin. Expense(SGA) was $20.16 Mil.
Total Current Liabilities was $7.57 Mil.
Long-Term Debt was $11.21 Mil.
Net Income was -7.37659012721 + -1.1770419426 + -11.64653121 + -4.2986965302 = $-24.50 Mil.
Non Operating Income was 8.12705016401 + 1.02781456954 + -0.000915248032217 + -0.536074903617 = $8.62 Mil.
Cash Flow from Operations was -5.63405072406 + -7.84988962472 + -7.29910305693 + 1.05838076005 = $-19.72 Mil.
Accounts Receivable was $4.46 Mil.
Revenue was 3.24886877828 + 4.25929456625 + 5.13544668588 + 5.97254901961 = $18.62 Mil.
Gross Profit was 0.598190045249 + 0.577693040991 + 0.621517771374 + 0.596078431373 = $2.39 Mil.
Total Current Assets was $57.30 Mil.
Total Assets was $92.51 Mil.
Property, Plant and Equipment(Net PPE) was $33.51 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.33 Mil.
Selling, General & Admin. Expense(SGA) was $31.46 Mil.
Total Current Liabilities was $14.26 Mil.
Long-Term Debt was $9.12 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)
=(3.90751260101 / 13.1868719489) / (4.46244343891 / 18.61615905)
=0.29631839 / 0.23970806
=1.2362

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)
=(0.387637969095 / 18.61615905) / (-4.0467237379 / 13.1868719489)
=0.12856998 / -0.5132144
=-0.2505

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 - (40.2368189455 + 37.499799984) / 79.2503400272) / (1 - (57.2959276018 + 33.5149321267) / 92.5104072398)
=0.0191005 / 0.01837142
=1.0397

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
=13.1868719489 / 18.61615905
=0.7084

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))
=(0.333123742881 / (0.333123742881 + 33.5149321267)) / (1.48576954886 / (1.48576954886 + 37.499799984))
=0.00984174 / 0.03811076
=0.2582

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)
=(20.1553165129 / 13.1868719489) / (31.4589331507 / 18.61615905)
=1.52843802 / 1.68987239
=0.9045

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)
=((11.2064965197 + 7.56780542443) / 79.2503400272) / ((9.12307692308 + 14.2615384615) / 92.5104072398)
=0.23689869 / 0.25277821
=0.9372

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
=(-24.49885981 - 8.6178745819 - -19.7246626457) / 79.2503400272
=-0.169

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

May05May06May07May08Feb10Feb11Feb12Feb13Feb14Feb15
DSRI 1.20570.59511.19791.38760.49431.18451.2814
GMI 1.64881.14960.21321.0621.32343.0727-0.2431
AQI 2.02050.93910.79611.2960.27740.82121.0397
SGI 1.38451.16611.40951.13581.33930.68680.6834
DEPI 0.90911.3640.79891.28132.41144.03510.2669
SGAI 1.25640.087512.66361.28251.751.57140.8761
LVGI 0.86511.45160.76760.64730.58591.59360.9372
TATA -0.2887-0.18080.09880.1127-0.23140.0187-0.161
M-score -2.55-3.44-3.92-1.22-3.68-1.42-3.94

Neptune Technologies & Bioressources Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 1.37520.4911.05591.08311.21631.13291.371.02750.92871.2362
GMI 1.05621.3221.91822.31494.59243.09291.9996-1.4723-0.655-0.2505
AQI 0.59190.27740.30630.35951.4510.82120.62960.49720.61981.0397
SGI 1.47431.34841.23560.92540.74970.71810.62120.58360.66110.7084
DEPI 2.62452.39752.01942.68523.76293.90413.47561.15260.43290.2582
SGAI 1.641.74971.86652.20111.41.55171.82811.72741.50260.9045
LVGI 1.15950.58590.53330.54810.93551.59361.18391.2810.99830.9372
TATA -0.0768-0.2338-0.188-0.2036-0.11730.0187-0.0646-0.0613-0.0022-0.169
M-score -2.18-3.69-2.77-2.85-0.70-1.44-2.32-4.82-4.04-4.01
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