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GuruFocus has detected 2 Warning Signs with Streamline Health Solutions Inc $STRM.
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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.07 (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 -3.07 suggests that the company is not a manipulator.

STRM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.69   Max: -1.5
Current: -3.07

-4.69
-1.5

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was -1.50. The lowest was -4.69. And the median was -3.18.


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 * 1.1189+0.528 * 1.0406+0.404 * 1.0662+0.892 * 0.9557+0.115 * 0.9523
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0188+4.679 * -0.1507-0.327 * 0.9696
=-3.07

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

This Year (Jan17) TTM:Last Year (Jan16) TTM:
Accounts Receivable was $4.49 Mil.
Revenue was 6.383 + 6.635 + 7.374 + 6.667 = $27.06 Mil.
Gross Profit was 3.297 + 3.412 + 4.883 + 3.941 = $15.53 Mil.
Total Current Assets was $11.95 Mil.
Total Assets was $41.64 Mil.
Property, Plant and Equipment(Net PPE) was $1.90 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.22 Mil.
Selling, General & Admin. Expense(SGA) was $13.09 Mil.
Total Current Liabilities was $12.76 Mil.
Long-Term Debt was $4.88 Mil.
Net Income was -1.019 + -1.93 + -0.734 + -1.478 = $-5.16 Mil.
Non Operating Income was 0.145 + -0.061 + -0.045 + 0.066 = $0.11 Mil.
Cash Flow from Operations was 2.252 + -1.383 + 2.598 + -2.459 = $1.01 Mil.
Accounts Receivable was $4.20 Mil.
Revenue was 6.371 + 7.155 + 8.619 + 6.169 = $28.31 Mil.
Gross Profit was 3.687 + 4.252 + 5.86 + 3.115 = $16.91 Mil.
Total Current Assets was $16.20 Mil.
Total Assets was $49.88 Mil.
Property, Plant and Equipment(Net PPE) was $2.45 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.66 Mil.
Selling, General & Admin. Expense(SGA) was $13.44 Mil.
Total Current Liabilities was $14.11 Mil.
Long-Term Debt was $7.68 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)
=(4.49 / 27.059) / (4.199 / 28.314)
=0.1659337 / 0.14830119
=1.1189

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)
=(16.914 / 28.314) / (15.533 / 27.059)
=0.59737232 / 0.57404191
=1.0406

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 - (11.945 + 1.904) / 41.638) / (1 - (16.203 + 2.454) / 49.876)
=0.66739517 / 0.62593231
=1.0662

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
=27.059 / 28.314
=0.9557

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))
=(5.663 / (5.663 + 2.454)) / (5.217 / (5.217 + 1.904))
=0.69767155 / 0.73262182
=0.9523

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)
=(13.088 / 27.059) / (13.442 / 28.314)
=0.4836838 / 0.47474747
=1.0188

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)
=((4.883 + 12.761) / 41.638) / ((7.684 + 14.114) / 49.876)
=0.42374754 / 0.43704387
=0.9696

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
=(-5.161 - 0.105 - 1.008) / 41.638
=-0.1507

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 -3.07 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 local exchange's currency.

Streamline Health Solutions Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
DSRI 1.22860.28961.29351.41031.76021.39460.76830.89420.59071.1189
GMI 1.07131.12320.97151.30760.74580.9390.9531.01550.88611.0407
AQI 1.12021.23561.11310.94731.15591.00230.8621.21480.96621.0662
SGI 1.04390.98331.1180.96690.97221.38861.19890.96951.02490.9557
DEPI 0.89610.99320.97541.72470.95370.71850.7551.59460.62150.9524
SGAI 0.99841.09350.7571.20371.05611.10151.2061.15060.80831.0187
LVGI 1.14631.02580.94531.25861.07580.8510.65421.24070.99980.9696
TATA -0.2434-0.3574-0.0494-0.3983-0.11340.0038-0.125-0.1822-0.2485-0.1507
M-score -3.34-4.69-2.25-3.89-2.45-1.78-3.13-3.40-4.08-3.07

Streamline Health Solutions Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
DSRI 0.89590.89410.74990.83010.55940.59080.60390.43060.90991.1189
GMI 1.04811.01560.99630.90770.90130.8860.86750.93110.97831.0406
AQI 0.97161.21481.0140.97890.96360.96621.00271.081.15571.0662
SGI 0.95930.96950.92651.02841.0361.02491.07330.97680.94770.9557
DEPI 1.4971.5951.34770.9391.0140.62140.63930.63920.65380.9523
SGAI 1.30941.15051.11290.94620.78620.80830.72580.78310.98121.0188
LVGI 0.69071.24071.19371.14381.04510.99980.9340.89140.94760.9696
TATA -0.1852-0.1822-0.2527-0.2497-0.2503-0.2485-0.191-0.218-0.1612-0.1507
M-score -3.36-3.40-4.00-3.88-4.07-4.08-3.71-4.02-3.33-3.07
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