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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-4.07 (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 -4.07 suggests that the company is not a manipulator.

STRM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87   Max: 0.28
Current: -4.07

-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 * 0.5594+0.528 * 0.9013+0.404 * 0.9636+0.892 * 1.036+0.115 * 1.014
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7862+4.679 * -0.2503-0.327 * 1.0451
=-4.07

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
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.
Net Income was -0.457 + -0.564 + -1.866 + -4.81 = $-7.70 Mil.
Non Operating Income was 0.11 + -0.16 + 1.989 + -0.526 = $1.41 Mil.
Cash Flow from Operations was 3.144 + 1.869 + -1.059 + -0.65 = $3.30 Mil.
Accounts Receivable was $5.92 Mil.
Revenue was 6.837 + 7.242 + 6.951 + 6.516 = $27.55 Mil.
Gross Profit was 3.793 + 4.221 + 3.398 + 2.887 = $14.30 Mil.
Total Current Assets was $14.73 Mil.
Total Assets was $56.75 Mil.
Property, Plant and Equipment(Net PPE) was $3.28 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.99 Mil.
Selling, General & Admin. Expense(SGA) was $17.11 Mil.
Total Current Liabilities was $14.44 Mil.
Long-Term Debt was $7.26 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)
=(3.429 / 28.539) / (5.917 / 27.546)
=0.12015137 / 0.21480433
=0.5594

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)
=(5.86 / 27.546) / (4.252 / 28.539)
=0.51909533 / 0.5759487
=0.9013

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 - (14.471 + 2.494) / 49.593) / (1 - (14.725 + 3.279) / 56.749)
=0.65791543 / 0.68274331
=0.9636

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
=28.539 / 27.546
=1.036

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))
=(2.994 / (2.994 + 3.279)) / (2.218 / (2.218 + 2.494))
=0.4772836 / 0.47071307
=1.014

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)
=(13.936 / 28.539) / (17.109 / 27.546)
=0.48831424 / 0.62110651
=0.7862

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)
=((8.156 + 11.658) / 49.593) / ((7.26 + 14.435) / 56.749)
=0.39953219 / 0.38229749
=1.0451

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
=(-7.697 - 1.413 - 3.304) / 49.593
=-0.2503

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 -4.07 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

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 3.33331.27930.76830.7591.02090.89590.89410.74990.83010.5594
GMI 0.94610.96210.9530.96051.05881.04811.01560.99630.90770.9013
AQI 0.99051.05070.8621.01551.05060.97161.21481.0140.97890.9636
SGI 1.47581.33281.19891.16850.96220.95930.96950.92651.02841.036
DEPI -0.34240.7260.7551.07171.73151.4971.5951.34770.9391.014
SGAI 1.23921.18341.2061.11561.2821.30941.15051.11290.94620.7862
LVGI 0.98411.00090.65420.68190.74950.69071.24071.19371.14381.0451
TATA 0.0557-0.0741-0.125-0.1421-0.1538-0.1852-0.1822-0.2527-0.2497-0.2503
M-score 0.13-2.34-3.13-3.14-3.05-3.36-3.40-4.00-3.88-4.07
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