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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-4.00 (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 -4.00 suggests that the company is not a manipulator.

STRM' s 10-Year Beneish M-Score Range
Min: -4.87   Max: 0.28
Current: -4

-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 -3.14.


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 * 0.7499+0.528 * 0.9963+0.404 * 1.014+0.892 * 0.9265+0.115 * 1.3477
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1129+4.679 * -0.2527-0.327 * 1.1937
=-4.00

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $6.26 Mil.
Revenue was 6.169 + 6.596 + 6.837 + 7.242 = $26.84 Mil.
Gross Profit was 3.115 + 3.21 + 3.793 + 4.221 = $14.34 Mil.
Total Current Assets was $14.24 Mil.
Total Assets was $51.99 Mil.
Property, Plant and Equipment(Net PPE) was $2.80 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.41 Mil.
Selling, General & Admin. Expense(SGA) was $16.09 Mil.
Total Current Liabilities was $12.93 Mil.
Long-Term Debt was $9.71 Mil.
Net Income was -1.866 + -4.81 + -2.256 + -2.275 = $-11.21 Mil.
Non Operating Income was 1.989 + -0.526 + 0.638 + -0.041 = $2.06 Mil.
Cash Flow from Operations was -1.059 + -0.65 + 1.911 + -0.329 = $-0.13 Mil.
Accounts Receivable was $9.00 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.



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)
=(6.255 / 26.844) / (9.002 / 28.972)
=0.23301296 / 0.31071379
=0.7499

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)
=(3.21 / 28.972) / (3.115 / 26.844)
=0.53216899 / 0.53416033
=0.9963

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 - (14.24 + 2.804) / 51.991) / (1 - (19.38 + 1.396) / 61.628)
=0.67217403 / 0.66288051
=1.014

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
=26.844 / 28.972
=0.9265

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))
=(2.305 / (2.305 + 1.396)) / (2.409 / (2.409 + 2.804))
=0.62280465 / 0.46211395
=1.3477

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)
=(16.091 / 26.844) / (15.605 / 28.972)
=0.59942632 / 0.5386235
=1.1129

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)
=((9.712 + 12.926) / 51.991) / ((7.366 + 15.113) / 61.628)
=0.43542152 / 0.36475303
=1.1937

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
=(-11.207 - 2.06 - -0.127) / 51.991
=-0.2527

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 -4.00 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.82330.84331.22860.28961.29351.41031.76021.39460.76830.8942
GMI 0.87441.09581.07131.12320.97151.30760.74580.9390.9531.0155
AQI 1.19051.26791.12021.23561.11310.94731.15591.00230.8621.2148
SGI 1.26480.98391.04390.98331.1180.96690.97221.38861.19890.9695
DEPI 1.20140.86520.89610.99320.97541.72470.95370.71850.7551.5946
SGAI 1.11471.13030.99841.09350.7571.20371.05611.10151.2061.1506
LVGI 0.90490.88731.14631.02580.94531.25861.07580.8510.65421.2407
TATA -0.01-0.1536-0.2434-0.3574-0.0494-0.3983-0.11340.0038-0.125-0.1822
M-score -1.49-3.20-3.34-4.69-2.25-3.89-2.45-1.78-3.13-3.40

Streamline Health Solutions Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.39462.69523.33331.27930.76830.7591.02090.89590.89410.7499
GMI 0.93880.97730.94610.96210.9530.96051.05881.04811.01560.9963
AQI 1.00231.05210.99051.05070.8621.01551.05060.97161.21481.014
SGI 1.38851.3461.47581.33281.19891.16850.96220.95930.96950.9265
DEPI 0.71850.2951-0.34240.7260.7551.07171.73151.4971.5951.3477
SGAI 1.10141.35111.23921.18341.2061.11561.2821.30941.15051.1129
LVGI 0.8510.89420.98411.00090.65420.68190.74950.69071.24071.1937
TATA 0.00380.04130.0557-0.0741-0.125-0.1421-0.1538-0.1852-0.1822-0.2527
M-score -1.79-0.520.13-2.34-3.13-3.14-3.05-3.36-3.40-4.00
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