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GuruFocus has detected 1 Warning Sign with Streamline Health Solutions Inc $STRM.
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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.30 (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 -3.30 suggests that the company is not a manipulator.

STRM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87   Max: 0.27
Current: -3.3

-4.87
0.27

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was 0.27. The lowest was -4.87. And the median was -3.33.


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 * 0.9099+0.528 * 0.9783+0.404 * 1.1557+0.892 * 0.9477+0.115 * 0.8947
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9812+4.679 * -0.1612-0.327 * 0.9476
=-3.30

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Oct16) TTM:Last Year (Oct15) TTM:
Accounts Receivable was $2.96 Mil.
Revenue was 6.635 + 7.374 + 6.667 + 6.371 = $27.05 Mil.
Gross Profit was 3.412 + 4.883 + 3.941 + 3.687 = $15.92 Mil.
Total Current Assets was $7.52 Mil.
Total Assets was $40.15 Mil.
Property, Plant and Equipment(Net PPE) was $2.10 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.34 Mil.
Selling, General & Admin. Expense(SGA) was $12.96 Mil.
Total Current Liabilities was $9.97 Mil.
Long-Term Debt was $5.23 Mil.
Net Income was -1.93 + -0.734 + -1.478 + -1.403 = $-5.55 Mil.
Non Operating Income was -0.061 + -0.045 + 0.066 + 0.285 = $0.25 Mil.
Cash Flow from Operations was -1.383 + 2.598 + -2.459 + 1.927 = $0.68 Mil.
Accounts Receivable was $3.43 Mil.
Revenue was 7.155 + 8.619 + 6.169 + 6.596 = $28.54 Mil.
Gross Profit was 4.252 + 5.86 + 3.115 + 3.21 = $16.44 Mil.
Total Current Assets was $14.47 Mil.
Total Assets was $49.59 Mil.
Property, Plant and Equipment(Net PPE) was $2.49 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.22 Mil.
Selling, General & Admin. Expense(SGA) was $13.94 Mil.
Total Current Liabilities was $11.66 Mil.
Long-Term Debt was $8.16 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)
=(2.957 / 27.047) / (3.429 / 28.539)
=0.10932821 / 0.12015137
=0.9099

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)
=(16.437 / 28.539) / (15.923 / 27.047)
=0.5759487 / 0.58871594
=0.9783

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 - (7.519 + 2.103) / 40.149) / (1 - (14.471 + 2.494) / 49.593)
=0.76034272 / 0.65791543
=1.1557

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
=27.047 / 28.539
=0.9477

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))
=(2.218 / (2.218 + 2.494)) / (2.335 / (2.335 + 2.103))
=0.47071307 / 0.5261379
=0.8947

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)
=(12.959 / 27.047) / (13.936 / 28.539)
=0.47912892 / 0.48831424
=0.9812

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)
=((5.232 + 9.969) / 40.149) / ((8.156 + 11.658) / 49.593)
=0.37861466 / 0.39953219
=0.9476

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
=(-5.545 - 0.245 - 0.683) / 40.149
=-0.1612

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 -3.30 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 local exchange's 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 0.86520.89610.99320.97541.72470.95370.71850.7551.59460.8445
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 -3.22-3.34-4.69-2.25-3.89-2.45-1.78-3.13-3.40-4.05

Streamline Health Solutions Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 1.02090.89590.89410.74990.83010.55940.59080.60390.43060.9099
GMI 1.05881.04811.01560.99630.90770.90130.8860.86750.93110.9783
AQI 1.05060.97161.21481.0140.97890.96360.96931.00271.081.1557
SGI 0.96220.95930.96950.92651.02841.0361.02491.07330.97680.9477
DEPI 1.73151.4971.5951.34770.9391.0140.84430.85560.84410.8947
SGAI 1.2821.30941.15051.11290.94620.78620.80830.72580.78310.9812
LVGI 0.74950.69071.24071.19371.14381.04511.00670.9340.89140.9476
TATA -0.1538-0.1852-0.1822-0.2527-0.2497-0.2503-0.2472-0.191-0.218-0.1612
M-score -3.05-3.36-3.40-4.00-3.88-4.07-4.05-3.69-3.99-3.30
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