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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.36 (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.

Streamline Health Solutions Inc has a M-score of -3.36 suggests that the company is not a manipulator.

STRM' s 10-Year Beneish M-Score Range
Min: -4.87   Max: 0.28
Current: -3.36

-4.87
0.28

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was 0.28. The lowest was -4.87. And the median was -3.13.


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 Streamline Health Solutions 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 * 0.8959+0.528 * 1.0481+0.404 * 0.9716+0.892 * 0.9593+0.115 * 1.497
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3094+4.679 * -0.1852-0.327 * 0.6907
=-3.36

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $5.92 Mil.
Revenue was 6.837 + 7.242 + 6.951 + 6.516 = $27.55 Mil.
Gross Profit was 3.793 + 4.221 + 3.398 + 2.887 = $14.30 Mil.
Total Current Assets was $14.73 Mil.
Total Assets was $56.75 Mil.
Property, Plant and Equipment(Net PPE) was $3.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.99 Mil.
Selling, General & Admin. Expense(SGA) was $17.11 Mil.
Total Current Liabilities was $14.44 Mil.
Long-Term Debt was $7.26 Mil.
Net Income was -2.256 + -2.275 + -2.671 + -1.947 = $-9.15 Mil.
Non Operating Income was 0.638 + -0.041 + 1.093 + 2.583 = $4.27 Mil.
Cash Flow from Operations was 1.911 + -0.329 + -3.944 + -0.55 = $-2.91 Mil.
Accounts Receivable was $6.89 Mil.
Revenue was 6.732 + 8.773 + 6.473 + 6.738 = $28.72 Mil.
Gross Profit was 3.597 + 5.536 + 3.297 + 3.193 = $15.62 Mil.
Total Current Assets was $14.83 Mil.
Total Assets was $52.71 Mil.
Property, Plant and Equipment(Net PPE) was $0.84 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.10 Mil.
Selling, General & Admin. Expense(SGA) was $13.62 Mil.
Total Current Liabilities was $29.18 Mil.
Long-Term Debt was $0.00 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)
=(5.917 / 27.546) / (6.885 / 28.716)
=0.21480433 / 0.23976181
=0.8959

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)
=(4.221 / 28.716) / (3.793 / 27.546)
=0.5440521 / 0.51909533
=1.0481

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 - (14.725 + 3.279) / 56.749) / (1 - (14.832 + 0.84) / 52.713)
=0.68274331 / 0.70269194
=0.9716

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
=27.546 / 28.716
=0.9593

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))
=(2.102 / (2.102 + 0.84)) / (2.994 / (2.994 + 3.279))
=0.71447995 / 0.4772836
=1.497

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)
=(17.109 / 27.546) / (13.621 / 28.716)
=0.62110651 / 0.47433487
=1.3094

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)
=((7.26 + 14.435) / 56.749) / ((0 + 29.178) / 52.713)
=0.38229749 / 0.5535257
=0.6907

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
=(-9.149 - 4.273 - -2.912) / 56.749
=-0.1852

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.

Streamline Health Solutions Inc has a M-score of -3.36 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.

Streamline Health Solutions Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.80011.82330.84331.22860.28961.29351.41031.76021.39460.7683
GMI 1.12470.87441.09581.07131.12320.97151.30760.74580.9390.953
AQI 1.61631.19051.26791.12021.23561.11310.94731.15591.00230.862
SGI 0.99591.26480.98391.04390.98331.1180.96690.97221.38861.1989
DEPI 0.88981.20140.86520.89610.99320.97541.72470.95370.71850.755
SGAI 1.17681.11471.13030.99841.09350.7571.20371.05611.10151.206
LVGI 0.78420.90490.88731.14631.02580.94531.25861.07580.8510.6542
TATA -0.1544-0.01-0.1536-0.2434-0.3574-0.0494-0.3983-0.11340.0038-0.125
M-score -3.05-1.49-3.20-3.34-4.69-2.25-3.89-2.45-1.78-3.13

Streamline Health Solutions Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.93111.35461.39462.69523.33331.27930.76830.7591.02090.8959
GMI 0.77780.79980.93880.97730.94610.96210.9530.96051.05881.0481
AQI 1.02491.06871.00231.05210.99051.05070.8621.01551.05060.9716
SGI 1.09351.23031.38851.3461.47581.33281.19891.16850.96220.9593
DEPI -1.07030.39610.71850.2951-0.34240.7260.7551.07171.73151.497
SGAI 1.02131.06611.10141.35111.23921.18341.2061.11561.2821.3094
LVGI 0.98541.0860.8510.89420.98411.00090.65420.68190.74950.6907
TATA -0.1998-0.04480.00380.04130.0557-0.0741-0.125-0.1421-0.1538-0.1852
M-score -3.74-2.34-1.79-0.520.13-2.34-3.13-3.14-3.05-3.36
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