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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-2.10 (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 -2.10 signals that the company is a manipulator.

STRM' s 10-Year Beneish M-Score Range
Min: -4.87   Max: 0.15
Current: -2.1

-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 * 1.5372+0.528 * 0.9621+0.404 * 1.0507+0.892 * 1.3328+0.115 * 0.726
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1834+4.679 * -0.0741-0.327 * 1.0009
=-2.10

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

This Year (Oct13) TTM:Last Year (Oct12) TTM:
Accounts Receivable was $8.27 Mil.
Revenue was 6.732 + 8.773 + 6.473 + 6.738 = $28.72 Mil.
Gross Profit was 3.597 + 5.536 + 3.297 + 3.193 = $15.62 Mil.
Total Current Assets was $14.83 Mil.
Total Assets was $52.71 Mil.
Property, Plant and Equipment(Net PPE) was $0.84 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.10 Mil.
Selling, General & Admin. Expense(SGA) was $13.62 Mil.
Total Current Liabilities was $29.18 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -6.232 + -0.828 + -2.71 + -7.807 = $-17.58 Mil.
Non Operating Income was -4.51 + -1.064 + -0.742 + -5.531 = $-11.85 Mil.
Cash Flow from Operations was 2.129 + 1.342 + -2.709 + -2.584 = $-1.82 Mil.
Accounts Receivable was $4.04 Mil.
Revenue was 6.534 + 5.049 + 5.445 + 4.518 = $21.55 Mil.
Gross Profit was 3.492 + 2.691 + 2.799 + 2.296 = $11.28 Mil.
Total Current Assets was $16.18 Mil.
Total Assets was $52.93 Mil.
Property, Plant and Equipment(Net PPE) was $1.35 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.45 Mil.
Selling, General & Admin. Expense(SGA) was $8.64 Mil.
Total Current Liabilities was $12.64 Mil.
Long-Term Debt was $16.63 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)
=(8.273 / 28.716) / (4.038 / 21.546)
=0.28809723 / 0.18741298
=1.5372

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)
=(5.536 / 21.546) / (3.597 / 28.716)
=0.52343823 / 0.5440521
=0.9621

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 - (14.832 + 0.84) / 52.713) / (1 - (16.183 + 1.348) / 52.927)
=0.70269194 / 0.66877019
=1.0507

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
=28.716 / 21.546
=1.3328

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))
=(1.453 / (1.453 + 1.348)) / (2.102 / (2.102 + 0.84))
=0.51874331 / 0.71447995
=0.726

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)
=(13.621 / 28.716) / (8.636 / 21.546)
=0.47433487 / 0.40081686
=1.1834

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)
=((0 + 29.178) / 52.713) / ((16.627 + 12.642) / 52.927)
=0.5535257 / 0.55300697
=1.0009

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
=(-17.577 - -11.847 - -1.822) / 52.713
=-0.0741

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 -2.10 signals that the company is likely to 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

Jan04Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13
DSRI 1.23180.61951.0490.84331.22860.3991.51681.09951.53161.4897
GMI 1.0791.12470.87441.09581.07131.12320.97151.30760.74580.939
AQI 1.19171.61631.19051.26791.12021.23561.11310.94731.15591.0023
SGI 0.95110.99591.26480.98391.04390.98331.1180.96690.97221.3886
DEPI 0.77270.88981.20140.86520.89610.99320.97541.72470.95370.7185
SGAI 0.94871.17681.11471.13030.99841.09350.7571.20371.05611.1015
LVGI 1.24350.78420.90490.88731.14631.02580.94531.25861.07580.8538
TATA 0.0425-0.1544-0.01-0.1536-0.2434-0.3574-0.0494-0.3983-0.11340.0038
M-score -2.09-3.21-2.20-3.20-3.34-4.59-2.04-4.18-2.66-1.70

Streamline Health Solutions Inc Quarterly Data

Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13
DSRI 0.91030.98631.53161.41660.86071.15771.48982.37593.36071.5372
GMI 1.11951.07320.74570.78920.77780.79980.93880.97730.94610.9621
AQI 1.03271.05771.15591.01091.02491.06871.00231.05210.99051.0507
SGI 0.94970.9230.97221.0121.09351.23031.38851.3461.47581.3328
DEPI 2.34343.31820.95441.6542-1.07030.39610.71850.3398-0.39940.726
SGAI 1.08891.17721.05611.02051.02131.06611.10141.35111.23921.1834
LVGI 1.03570.99231.07581.08660.98541.0860.85380.89420.98411.0009
TATA -0.4078-0.3539-0.1134-0.1613-0.1998-0.04480.00380.04130.0557-0.0741
M-score -4.31-3.92-2.66-2.90-3.80-2.53-1.70-0.800.15-2.10
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