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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

STRM' s 10-Year Beneish M-Score Range
Min: -4.87   Max: 0.15
Current: -3.12

-4.87
0.15

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was 0.15. The lowest was -4.87. And the median was -3.14.


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 * 0.7755+0.528 * 0.9605+0.404 * 1.0155+0.892 * 1.1685+0.115 * 1.0717
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1156+4.679 * -0.1421-0.327 * 0.6819
=-3.12

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $9.20 Mil.
Revenue was 6.951 + 6.516 + 6.732 + 8.773 = $28.97 Mil.
Gross Profit was 3.398 + 2.887 + 3.597 + 5.536 = $15.42 Mil.
Total Current Assets was $19.38 Mil.
Total Assets was $61.63 Mil.
Property, Plant and Equipment(Net PPE) was $1.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.31 Mil.
Selling, General & Admin. Expense(SGA) was $15.61 Mil.
Total Current Liabilities was $15.11 Mil.
Long-Term Debt was $7.37 Mil.
Net Income was -2.671 + -1.947 + -6.232 + -0.828 = $-11.68 Mil.
Non Operating Income was 1.093 + 2.583 + -4.51 + -1.064 = $-1.90 Mil.
Cash Flow from Operations was -3.944 + -0.55 + 2.129 + 1.342 = $-1.02 Mil.
Accounts Receivable was $10.15 Mil.
Revenue was 6.473 + 6.738 + 6.534 + 5.049 = $24.79 Mil.
Gross Profit was 3.297 + 3.193 + 3.492 + 2.691 = $12.67 Mil.
Total Current Assets was $16.75 Mil.
Total Assets was $51.43 Mil.
Property, Plant and Equipment(Net PPE) was $1.11 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.22 Mil.
Selling, General & Admin. Expense(SGA) was $11.97 Mil.
Total Current Liabilities was $15.35 Mil.
Long-Term Debt was $12.16 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)
=(9.198 / 28.972) / (10.15 / 24.794)
=0.31747895 / 0.40937324
=0.7755

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)
=(2.887 / 24.794) / (3.398 / 28.972)
=0.51113173 / 0.53216899
=0.9605

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 - (19.38 + 1.396) / 61.628) / (1 - (16.752 + 1.106) / 51.428)
=0.66288051 / 0.65275725
=1.0155

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
=28.972 / 24.794
=1.1685

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))
=(2.22 / (2.22 + 1.106)) / (2.305 / (2.305 + 1.396))
=0.66746843 / 0.62280465
=1.0717

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)
=(15.605 / 28.972) / (11.971 / 24.794)
=0.5386235 / 0.48281842
=1.1156

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)
=((7.366 + 15.113) / 61.628) / ((12.157 + 15.351) / 51.428)
=0.36475303 / 0.53488372
=0.6819

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
=(-11.678 - -1.898 - -1.023) / 61.628
=-0.1421

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 -3.12 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 0.61951.0490.84331.22860.3991.51681.09951.53161.48970.7532
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 -3.21-2.20-3.20-3.34-4.59-2.04-4.18-2.66-1.70-3.15

Streamline Health Solutions Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 1.53161.41660.86071.15771.48982.37593.36071.53720.75320.7755
GMI 0.74570.78920.77780.79980.93880.97730.94610.96210.9530.9605
AQI 1.15591.01091.02491.06871.00231.05210.99051.05070.8621.0155
SGI 0.97221.0121.09351.23031.38851.3461.47581.33281.19891.1685
DEPI 0.95441.6542-1.07030.39610.71850.2951-0.39940.7260.7551.0717
SGAI 1.05611.02051.02131.06611.10141.35111.23921.18341.2061.1156
LVGI 1.07581.08660.98541.0860.8510.89420.98411.00090.65420.6819
TATA -0.1134-0.1613-0.1998-0.04480.00380.04130.0557-0.0741-0.125-0.1421
M-score -2.66-2.90-3.80-2.53-1.70-0.810.15-2.10-3.15-3.12
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