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TSR Inc (NAS:TSRI)
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.

TSR Inc has a M-score of -3.04 suggests that the company is not a manipulator.

TSRI' s Beneish M-Score Range Over the Past 10 Years
Min: -10000000   Max: 0.69
Current: -3.04

-10000000
0.69

During the past 13 years, the highest Beneish M-Score of TSR Inc was 0.69. The lowest was -10000000.00. And the median was -2.62.


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 TSR 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 * 0.8208+0.528 * 0.9828+0.404 * 0.7172+0.892 * 1.0348+0.115 * 0.7213
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0008+4.679 * -0.0648-0.327 * 0.9146
=-3.04

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

This Year (Aug16) TTM:Last Year (Aug15) TTM:
Accounts Receivable was $7.82 Mil.
Revenue was 15.242 + 15.504 + 15.075 + 15.185 = $61.01 Mil.
Gross Profit was 2.601 + 2.629 + 2.305 + 2.506 = $10.04 Mil.
Total Current Assets was $14.23 Mil.
Total Assets was $14.30 Mil.
Property, Plant and Equipment(Net PPE) was $0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General & Admin. Expense(SGA) was $9.21 Mil.
Total Current Liabilities was $4.68 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.148 + 0.169 + -0.024 + 0.12 = $0.41 Mil.
Non Operating Income was 0.003 + 0.002 + -0.004 + 0.005 = $0.01 Mil.
Cash Flow from Operations was 0.028 + 0.904 + -0.988 + 1.39 = $1.33 Mil.
Accounts Receivable was $9.21 Mil.
Revenue was 15.235 + 14.97 + 14.213 + 14.534 = $58.95 Mil.
Gross Profit was 2.52 + 2.431 + 2.131 + 2.454 = $9.54 Mil.
Total Current Assets was $14.29 Mil.
Total Assets was $14.40 Mil.
Property, Plant and Equipment(Net PPE) was $0.04 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General & Admin. Expense(SGA) was $8.89 Mil.
Total Current Liabilities was $5.15 Mil.
Long-Term Debt was $0.00 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)
=(7.82 / 61.006) / (9.206 / 58.952)
=0.12818411 / 0.15616094
=0.8208

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)
=(9.536 / 58.952) / (10.041 / 61.006)
=0.16175872 / 0.16459037
=0.9828

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 - (14.229 + 0.023) / 14.304) / (1 - (14.289 + 0.039) / 14.401)
=0.00363535 / 0.00506909
=0.7172

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
=61.006 / 58.952
=1.0348

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))
=(0.022 / (0.022 + 0.039)) / (0.023 / (0.023 + 0.023))
=0.36065574 / 0.5
=0.7213

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)
=(9.206 / 61.006) / (8.889 / 58.952)
=0.15090319 / 0.15078369
=1.0008

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 + 4.681) / 14.304) / ((0 + 5.153) / 14.401)
=0.32725112 / 0.35782237
=0.9146

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
=(0.413 - 0.006 - 1.334) / 14.304
=-0.0648

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.

TSR Inc has a M-score of -3.04 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.

TSR Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
DSRI 0.94440.9630.94081.18471.2870.85131.05480.87150.85940.8281
GMI 1.05471.01191.01441.01560.9671.10721.00670.98111.02990.9939
AQI 0.69341.02090.11520.91523.10190.2762.54670.92220.41290.6864
SGI 1.03281.04090.82750.86341.06461.14930.99331.10281.1591.0626
DEPI 1.02020.70721.02130.91671.63641.03330.77961.29310.9440.7517
SGAI 0.91620.98951.08481.07671.0140.96841.08950.92610.92870.9663
LVGI 0.92090.95680.89061.04781.26571.05761.27230.99431.02870.9307
TATA 0.00810.0052-0.0651-0.00960.0596-0.02470.038-0.0451-0.0375-0.0587
M-score -2.52-2.46-3.32-2.54-1.06-2.84-1.76-2.71-2.87-2.99

TSR Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
DSRI 0.87150.75770.82950.93620.85941.01980.80030.840.82810.8208
GMI 0.98121.00431.01041.02861.03011.02531.03051.01070.99380.9828
AQI 0.92220.34860.35530.63830.41290.45521.07860.450.68640.7172
SGI 1.10281.11851.13061.13591.1591.1531.11411.08791.06261.0348
DEPI 1.41561.37651.34310.89970.87460.87290.9040.73230.75830.7213
SGAI 0.92610.92510.94080.93690.92870.91340.92990.94970.96641.0008
LVGI 0.99431.06071.08281.02591.02871.00520.99290.98310.93070.9146
TATA -0.045-0.1578-0.10770.0101-0.03750.0728-0.0746-0.0696-0.0586-0.0648
M-score -2.70-3.56-3.26-2.51-2.88-2.19-2.86-3.11-2.99-3.04
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