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TSR Inc (NAS:TSRI)
Beneish M-Score
-3.56 (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 -3.56 suggests that the company is not a manipulator.

TSRI' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 0.67
Current: -3.56

-10000000
0.67

During the past 13 years, the highest Beneish M-Score of TSR Inc was 0.67. The lowest was -10000000.00. And the median was -2.58.


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 * 0.7577+0.528 * 1.0043+0.404 * 0.3486+0.892 * 1.1185+0.115 * 1.3765
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9251+4.679 * -0.1578-0.327 * 1.0607
=-3.56

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

This Year (Aug14) TTM:Last Year (Aug13) TTM:
Accounts Receivable was $7.83 Mil.
Revenue was 13.686 + 13.149 + 12.128 + 12.166 = $51.13 Mil.
Gross Profit was 2.299 + 2.186 + 1.929 + 2.066 = $8.48 Mil.
Total Current Assets was $13.73 Mil.
Total Assets was $13.92 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 $8.44 Mil.
Total Current Liabilities was $4.96 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was 0.025 + -0.038 + -0.091 + 0.032 = $-0.07 Mil.
Non Operating Income was 0.006 + 0.002 + 0.001 + 0.001 = $0.01 Mil.
Cash Flow from Operations was 1.376 + 0.185 + 0.655 + -0.102 = $2.11 Mil.
Accounts Receivable was $9.24 Mil.
Revenue was 12.087 + 12.55 + 10.515 + 10.56 = $45.71 Mil.
Gross Profit was 2.098 + 2.12 + 1.641 + 1.755 = $7.61 Mil.
Total Current Assets was $13.05 Mil.
Total Assets was $13.49 Mil.
Property, Plant and Equipment(Net PPE) was $0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.01 Mil.
Selling, General & Admin. Expense(SGA) was $8.16 Mil.
Total Current Liabilities was $4.53 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)
=(7.829 / 51.129) / (9.238 / 45.712)
=0.15312249 / 0.20209135
=0.7577

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)
=(2.186 / 45.712) / (2.299 / 51.129)
=0.16656458 / 0.16585499
=1.0043

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 - (13.727 + 0.037) / 13.919) / (1 - (13.046 + 0.017) / 13.494)
=0.01113586 / 0.03194012
=0.3486

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
=51.129 / 45.712
=1.1185

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))
=(0.013 / (0.013 + 0.017)) / (0.017 / (0.017 + 0.037))
=0.43333333 / 0.31481481
=1.3765

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)
=(8.44 / 51.129) / (8.157 / 45.712)
=0.16507266 / 0.1784433
=0.9251

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 + 4.955) / 13.919) / ((0 + 4.529) / 13.494)
=0.35598822 / 0.33563065
=1.0607

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
=(-0.072 - 0.01 - 2.114) / 13.919
=-0.1578

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 -3.56 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.

TSR Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
DSRI 0.76221.1910.95580.95150.94081.18471.28770.85081.05480.8715
GMI 1.02311.11481.05471.01191.01441.01560.9671.10721.00670.9811
AQI 0.84448.28180.69341.02090.11520.93243.04470.2762.54670.9222
SGI 0.99460.93521.03281.04090.82750.86341.06461.14930.99331.1028
DEPI 1.61541.29251.02020.70721.02130.91671.63641.03330.77961.2931
SGAI 0.9721.08790.91620.98951.08481.07671.0140.96841.08950.9261
LVGI 1.02291.16560.92090.95680.89061.00991.31321.05761.27230.9943
TATA -0.13040.01370.00510.0004-0.0651-0.00050.0596-0.02470.038-0.0451
M-score -3.300.67-2.52-2.49-3.32-2.48-1.10-2.85-1.76-2.71

TSR Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DSRI 0.85080.90340.91640.91061.05481.06180.97930.98380.87150.7577
GMI 1.10731.08991.05981.02881.00640.98480.97350.97330.98121.0043
AQI 0.2760.96951.20131.23952.54675.73231.72511.87030.92220.3486
SGI 1.14931.09141.04370.99040.99331.01291.06151.11211.10281.1185
DEPI 1.19230.87880.81250.81970.74440.87530.87871.42581.41561.3765
SGAI 0.96841.01671.05971.11641.08951.05580.97770.92610.92610.9251
LVGI 1.05761.05751.25021.23471.27231.2040.96491.04520.99431.0607
TATA -0.0247-0.0144-0.017-0.03870.0380.0760.050.0163-0.045-0.1578
M-score -2.83-2.56-2.60-2.76-1.76-0.24-1.93-1.93-2.70-3.56
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