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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.04 (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 -3.05 suggests that the company is not a manipulator.

STRM' s 10-Year Beneish M-Score Range
Min: -4.87   Max: 0.28
Current: -3.04

-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 -3.13.


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 * 1.0209+0.528 * 1.0588+0.404 * 1.0506+0.892 * 0.9622+0.115 * 1.7315
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.282+4.679 * -0.1538-0.327 * 0.7495
=-3.05

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $10.58 Mil.
Revenue was 7.242 + 6.951 + 6.516 + 6.732 = $27.44 Mil.
Gross Profit was 4.221 + 3.398 + 2.887 + 3.597 = $14.10 Mil.
Total Current Assets was $19.11 Mil.
Total Assets was $62.14 Mil.
Property, Plant and Equipment(Net PPE) was $3.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.59 Mil.
Selling, General & Admin. Expense(SGA) was $16.25 Mil.
Total Current Liabilities was $16.52 Mil.
Long-Term Debt was $8.10 Mil.
Net Income was -2.275 + -2.671 + -1.947 + -6.232 = $-13.13 Mil.
Non Operating Income was -0.041 + 1.093 + 2.583 + -4.51 = $-0.88 Mil.
Cash Flow from Operations was -0.329 + -3.944 + -0.55 + 2.129 = $-2.69 Mil.
Accounts Receivable was $10.77 Mil.
Revenue was 8.773 + 6.473 + 6.738 + 6.534 = $28.52 Mil.
Gross Profit was 5.536 + 3.297 + 3.193 + 3.492 = $15.52 Mil.
Total Current Assets was $20.02 Mil.
Total Assets was $53.81 Mil.
Property, Plant and Equipment(Net PPE) was $0.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.29 Mil.
Selling, General & Admin. Expense(SGA) was $13.18 Mil.
Total Current Liabilities was $16.63 Mil.
Long-Term Debt was $11.81 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)
=(10.583 / 27.441) / (10.773 / 28.518)
=0.38566379 / 0.37776141
=1.0209

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)
=(3.398 / 28.518) / (4.221 / 27.441)
=0.54414756 / 0.513939
=1.0588

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 - (19.105 + 3.202) / 62.139) / (1 - (20.022 + 0.955) / 53.809)
=0.6410145 / 0.61015815
=1.0506

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
=27.441 / 28.518
=0.9622

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))
=(3.285 / (3.285 + 0.955)) / (2.593 / (2.593 + 3.202))
=0.77476415 / 0.4474547
=1.7315

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)
=(16.252 / 27.441) / (13.175 / 28.518)
=0.59225247 / 0.46198892
=1.282

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)
=((8.102 + 16.516) / 62.139) / ((11.813 + 16.631) / 53.809)
=0.39617631 / 0.52861046
=0.7495

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
=(-13.125 - -0.875 - -2.694) / 62.139
=-0.1538

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 -3.05 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 0.80011.82330.84331.22860.28961.29351.41031.76021.39460.7683
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 -3.05-1.49-3.20-3.34-4.69-2.25-3.89-2.45-1.78-3.13

Streamline Health Solutions Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 1.78260.93111.35461.39462.69523.33331.27930.76830.7591.0209
GMI 0.78920.77780.79980.93880.97730.94610.96210.9530.96051.0588
AQI 1.01091.02491.06871.00231.05210.99051.05070.8621.01551.0506
SGI 1.0121.09351.23031.38851.3461.47581.33281.19891.16850.9622
DEPI 1.6542-1.07030.39610.71850.2951-0.34240.7260.7551.07171.7315
SGAI 1.02051.02131.06611.10141.35111.23921.18341.2061.11561.282
LVGI 1.08660.98541.0860.8510.89420.98411.00090.65420.68190.7495
TATA -0.1613-0.1998-0.04480.00380.04130.0557-0.0741-0.125-0.1421-0.1538
M-score -2.57-3.74-2.34-1.79-0.520.13-2.34-3.13-3.14-3.05
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