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Neptune Technologies & Bioressources Inc. (NAS:NEPT)
Beneish M-Score
-0.60 (As of Today)

Warning Sign:

Beneish M-Score -0.60 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 -0.69 signals that the company is a manipulator.

NEPT' s 10-Year Beneish M-Score Range
Min: -5.8   Max: 19.82
Current: -0.6

-5.8
19.82

During the past 13 years, the highest Beneish M-Score of Neptune Technologies & Bioressources Inc. was 19.82. The lowest was -5.80. And the median was -2.47.


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 * 1.105+0.528 * 4.9022+0.404 * 1.451+0.892 * 0.7363+0.115 * 3.7211
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4085+4.679 * -0.1228-0.327 * 0.9355
=-0.69

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

This Year (Nov13) TTM:Last Year (Nov12) TTM:
Accounts Receivable was $10.92 Mil.
Revenue was 4.13157894737 + 5.17021276596 + 5.90688651794 + 4.4833984375 = $19.69 Mil.
Gross Profit was 0.501879699248 + 0.625725338491 + 0.586808923375 + 0.22265625 = $1.94 Mil.
Total Current Assets was $31.84 Mil.
Total Assets was $59.90 Mil.
Property, Plant and Equipment(Net PPE) was $26.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.30 Mil.
Selling, General & Admin. Expense(SGA) was $27.21 Mil.
Total Current Liabilities was $11.92 Mil.
Long-Term Debt was $1.87 Mil.
Net Income was -8.26785714286 + -3.45261121857 + -4.33171677983 + -0.21875 = $-16.27 Mil.
Non Operating Income was 0.0883458646617 + 0.112185686654 + -0.00387972841901 + 0.5009765625 = $0.70 Mil.
Cash Flow from Operations was -7.60714285714 + 1.75531914894 + -8.74393792435 + 4.982421875 = $-9.61 Mil.
Accounts Receivable was $13.43 Mil.
Revenue was 7.09797979798 + 8.27914110429 + 5.98054474708 + 5.38631790744 = $26.74 Mil.
Gross Profit was 3.37373737374 + 3.12167689162 + 3.51070038911 + 2.89034205231 = $12.90 Mil.
Total Current Assets was $57.48 Mil.
Total Assets was $75.64 Mil.
Property, Plant and Equipment(Net PPE) was $16.61 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.73 Mil.
Selling, General & Admin. Expense(SGA) was $26.24 Mil.
Total Current Liabilities was $14.60 Mil.
Long-Term Debt was $4.01 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)
=(10.9248120301 / 19.6920766688) / (13.4272727273 / 26.7439835568)
=0.55478212 / 0.50206704
=1.105

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)
=(0.625725338491 / 26.7439835568) / (0.501879699248 / 19.6920766688)
=0.48221899 / 0.098368
=4.9022

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 - (31.837406015 + 26.2791353383) / 59.8994360902) / (1 - (57.4787878788 + 16.6050505051) / 75.6353535354)
=0.0297648 / 0.02051309
=1.451

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
=19.6920766688 / 26.7439835568
=0.7363

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))
=(0.726836769925 / (0.726836769925 + 16.6050505051)) / (0.29953820693 / (0.29953820693 + 26.2791353383))
=0.04193639 / 0.01126987
=3.7211

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)
=(27.2098620357 / 19.6920766688) / (26.2372767548 / 26.7439835568)
=1.38176702 / 0.98105343
=1.4085

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)
=((1.87312030075 + 11.9154135338) / 59.8994360902) / ((4.00909090909 + 14.603030303) / 75.6353535354)
=0.23019472 / 0.246077
=0.9355

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
=(-16.2709351413 - 0.697628385396 - -9.61333975755) / 59.8994360902
=-0.1228

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 -0.69 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 own currency.

Neptune Technologies & Bioressources Inc. Annual Data

May03May04May05May06May07May08Feb10Feb11Feb12Feb13
DSRI 1.19750.66891.20371.36820.7542
GMI 1.64881.14960.21321.0621.3298
AQI 2.02050.93910.79611.2960.2774
SGI 1.32271.22661.37951.12661.3128
DEPI 0.90911.3640.79891.28132.4114
SGAI 1.25640.087512.66361.28251.7556
LVGI 0.86511.45160.76760.64730.5886
TATA -0.2887-0.18080.09880.1127-0.235
M-score -2.62-3.32-3.94-1.25-3.48

Neptune Technologies & Bioressources Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
DSRI 1.65811.02251.3281.3421.03521.36590.73240.98620.94011.105
GMI 0.77940.96351.06050.9911.06041.05781.32831.92182.32984.9022
AQI 0.55750.60251.2961.89221.94550.59190.27740.30630.35951.451
SGI 1.07291.07561.16071.22851.42971.48521.35191.24420.91920.7363
DEPI 0.8780.96281.24741.90812.3882.62692.34762.00812.66933.7211
SGAI 3.15041.8311.27641.15221.06131.64331.7571.87132.21211.4085
LVGI 0.55910.61860.64731.19141.35461.15950.58860.53330.54810.9355
TATA 0.0175-0.00780.10980.12850.0167-0.0777-0.2413-0.195-0.2067-0.1228
M-score -2.26-2.63-1.27-0.99-1.54-2.18-3.50-2.86-3.00-0.69
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