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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-4.05 (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 -4.05 suggests that the company is not a manipulator.

STRM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.69   Max: -1.5
Current: -4.05

-4.69
-1.5

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was -1.50. The lowest was -4.69. And the median was -3.22.


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 * 0.5908+0.528 * 0.886+0.404 * 0.9693+0.892 * 1.0249+0.115 * 0.8443
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8083+4.679 * -0.2472-0.327 * 1.0067
=-4.05

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $4.20 Mil.
Revenue was 6.371 + 7.155 + 8.619 + 6.169 = $28.31 Mil.
Gross Profit was 3.687 + 4.252 + 5.86 + 3.115 = $16.91 Mil.
Total Current Assets was $16.20 Mil.
Total Assets was $50.15 Mil.
Property, Plant and Equipment(Net PPE) was $2.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.59 Mil.
Selling, General & Admin. Expense(SGA) was $13.44 Mil.
Total Current Liabilities was $14.11 Mil.
Long-Term Debt was $7.95 Mil.
Net Income was -1.403 + -0.457 + -0.564 + -1.866 = $-4.29 Mil.
Non Operating Income was 0.285 + 0.11 + -0.16 + 1.989 = $2.22 Mil.
Cash Flow from Operations was 1.927 + 3.144 + 1.869 + -1.059 = $5.88 Mil.
Accounts Receivable was $6.94 Mil.
Revenue was 6.596 + 6.837 + 7.242 + 6.951 = $27.63 Mil.
Gross Profit was 3.21 + 3.793 + 4.221 + 3.398 = $14.62 Mil.
Total Current Assets was $16.51 Mil.
Total Assets was $55.78 Mil.
Property, Plant and Equipment(Net PPE) was $3.14 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.40 Mil.
Selling, General & Admin. Expense(SGA) was $16.23 Mil.
Total Current Liabilities was $14.30 Mil.
Long-Term Debt was $10.08 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)
=(4.199 / 28.314) / (6.935 / 27.626)
=0.14830119 / 0.25103164
=0.5908

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)
=(4.252 / 27.626) / (3.687 / 28.314)
=0.52928401 / 0.59737232
=0.886

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 - (16.203 + 2.454) / 50.146) / (1 - (16.506 + 3.137) / 55.779)
=0.6279464 / 0.64784238
=0.9693

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
=28.314 / 27.626
=1.0249

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))
=(2.401 / (2.401 + 3.137)) / (2.59 / (2.59 + 2.454))
=0.43355002 / 0.51348136
=0.8443

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)
=(13.442 / 28.314) / (16.225 / 27.626)
=0.47474747 / 0.58730906
=0.8083

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)
=((7.954 + 14.114) / 50.146) / ((10.083 + 14.3) / 55.779)
=0.44007498 / 0.43713584
=1.0067

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
=(-4.29 - 2.224 - 5.881) / 50.146
=-0.2472

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 -4.05 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.84331.22860.28961.29351.41031.76021.39460.76830.89420.5907
GMI 1.09581.07131.12320.97151.30760.74580.9390.9531.01550.8861
AQI 1.26791.12021.23561.11310.94731.15591.00230.8621.21480.9693
SGI 0.98391.04390.98331.1180.96690.97221.38861.19890.96951.0249
DEPI 0.86520.89610.99320.97540.90481.79940.72580.7551.59460.8445
SGAI 1.13030.99841.09350.7571.20371.05611.10151.2061.15060.8083
LVGI 0.88731.14631.02580.94531.25861.07580.8510.65421.24071.0067
TATA -0.1571-0.2434-0.3574-0.0494-0.3983-0.11340.0038-0.125-0.1822-0.2472
M-score -3.22-3.34-4.69-2.25-3.99-2.35-1.78-3.13-3.40-4.05

Streamline Health Solutions Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 1.27930.76830.7591.02090.89590.89410.74990.83010.55940.5908
GMI 0.96210.9530.96051.05881.04811.01560.99630.90770.90130.886
AQI 1.05070.8621.01551.05060.97161.21481.0140.97890.96360.9693
SGI 1.33281.19891.16850.96220.95930.96950.92651.02841.0361.0249
DEPI 0.7260.7551.07171.73151.4971.5951.34770.9391.0140.8443
SGAI 1.18341.2061.11561.2821.30941.15051.11290.94620.78620.8083
LVGI 1.00090.65420.68190.74950.69071.24071.19371.14381.04511.0067
TATA -0.0741-0.125-0.1421-0.1538-0.1852-0.1822-0.2527-0.2497-0.2503-0.2472
M-score -2.34-3.13-3.14-3.05-3.36-3.40-4.00-3.88-4.07-4.05
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