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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.15 (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 -3.15 suggests that the company is not a manipulator.

STRM' s 10-Year Beneish M-Score Range
Min: -4.59   Max: -1.6
Current: -3.15

-4.59
-1.6

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was -1.60. The lowest was -4.59. And the median was -3.15.


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 * 0.7532+0.528 * 0.953+0.404 * 0.862+0.892 * 1.1989+0.115 * 0.755
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.206+4.679 * -0.125-0.327 * 0.6542
=-3.15

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $9.18 Mil.
Revenue was 6.516 + 6.732 + 8.773 + 6.473 = $28.49 Mil.
Gross Profit was 2.887 + 3.597 + 5.536 + 3.297 = $15.32 Mil.
Total Current Assets was $29.69 Mil.
Total Assets was $65.58 Mil.
Property, Plant and Equipment(Net PPE) was $0.92 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.06 Mil.
Selling, General & Admin. Expense(SGA) was $14.55 Mil.
Total Current Liabilities was $15.41 Mil.
Long-Term Debt was $7.69 Mil.
Net Income was -1.947 + -6.232 + -0.828 + -2.71 = $-11.72 Mil.
Non Operating Income was 2.583 + -4.51 + -1.064 + -0.742 = $-3.73 Mil.
Cash Flow from Operations was -0.55 + 2.129 + 1.342 + -2.709 = $0.21 Mil.
Accounts Receivable was $10.17 Mil.
Revenue was 6.738 + 6.534 + 5.049 + 5.445 = $23.77 Mil.
Gross Profit was 3.193 + 3.492 + 2.691 + 2.799 = $12.18 Mil.
Total Current Assets was $19.88 Mil.
Total Assets was $55.27 Mil.
Property, Plant and Equipment(Net PPE) was $1.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.31 Mil.
Selling, General & Admin. Expense(SGA) was $10.06 Mil.
Total Current Liabilities was $17.33 Mil.
Long-Term Debt was $12.44 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)
=(9.181 / 28.494) / (10.167 / 23.766)
=0.32220818 / 0.42779601
=0.7532

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)
=(3.597 / 23.766) / (2.887 / 28.494)
=0.51228646 / 0.53755177
=0.953

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 - (29.688 + 0.919) / 65.579) / (1 - (19.878 + 1.199) / 55.267)
=0.53328047 / 0.61863318
=0.862

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
=28.494 / 23.766
=1.1989

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))
=(1.31 / (1.31 + 1.199)) / (2.06 / (2.06 + 0.919))
=0.52212037 / 0.69150722
=0.755

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)
=(14.546 / 28.494) / (10.06 / 23.766)
=0.51049344 / 0.42329378
=1.206

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)
=((7.693 + 15.412) / 65.579) / ((12.438 + 17.325) / 55.267)
=0.35232315 / 0.53853113
=0.6542

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
=(-11.717 - -3.733 - 0.212) / 65.579
=-0.125

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 -3.15 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

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.98631.53161.41660.86071.15771.48982.37593.36071.53720.7532
GMI 1.07320.74570.78920.77780.79980.93880.97730.94610.96210.953
AQI 1.05771.15591.01091.02491.06871.00231.05210.99051.05070.862
SGI 0.9230.97221.0121.09351.23031.38851.3461.47581.33281.1989
DEPI 3.31820.95441.6542-1.07030.39610.71850.3398-0.39940.7260.755
SGAI 1.17721.05611.02051.02131.06611.10141.35111.23921.18341.206
LVGI 0.99231.07581.08660.98541.0860.8510.89420.98411.00090.6542
TATA -0.3539-0.1134-0.1613-0.1998-0.04480.00380.04130.0557-0.0741-0.125
M-score -3.92-2.66-2.90-3.80-2.53-1.70-0.800.15-2.10-3.15
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