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TSR Inc (NAS:TSRI)
Beneish M-Score
-3.11 (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 -3.11 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: -3.11

-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 -2.60.


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 * 0.84+0.528 * 1.0107+0.404 * 0.45+0.892 * 1.0879+0.115 * 0.7323
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9497+4.679 * -0.0696-0.327 * 0.9831
=-3.11

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $8.55 Mil.
Revenue was 15.075 + 15.185 + 15.235 + 14.97 = $60.47 Mil.
Gross Profit was 2.305 + 2.506 + 2.52 + 2.431 = $9.76 Mil.
Total Current Assets was $13.99 Mil.
Total Assets was $14.08 Mil.
Property, Plant and Equipment(Net PPE) was $0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.03 Mil.
Selling, General & Admin. Expense(SGA) was $9.04 Mil.
Total Current Liabilities was $4.79 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.024 + 0.12 + 0.134 + 0.112 = $0.34 Mil.
Non Operating Income was -0.004 + 0.005 + -0.005 + 0.001 = $-0.00 Mil.
Cash Flow from Operations was -0.988 + 1.39 + -0.079 + 1.001 = $1.32 Mil.
Accounts Receivable was $9.36 Mil.
Revenue was 14.213 + 14.534 + 13.686 + 13.149 = $55.58 Mil.
Gross Profit was 2.131 + 2.454 + 2.299 + 2.186 = $9.07 Mil.
Total Current Assets was $13.57 Mil.
Total Assets was $13.72 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 $8.75 Mil.
Total Current Liabilities was $4.75 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)
=(8.551 / 60.465) / (9.358 / 55.582)
=0.14142066 / 0.16836386
=0.84

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)
=(2.506 / 55.582) / (2.305 / 60.465)
=0.16318233 / 0.16144877
=1.0107

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 - (13.99 + 0.031) / 14.075) / (1 - (13.57 + 0.035) / 13.722)
=0.00383659 / 0.00852645
=0.45

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
=60.465 / 55.582
=1.0879

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))
=(0.017 / (0.017 + 0.035)) / (0.025 / (0.025 + 0.031))
=0.32692308 / 0.44642857
=0.7323

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)
=(9.041 / 60.465) / (8.751 / 55.582)
=0.14952452 / 0.15744306
=0.9497

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 + 4.789) / 14.075) / ((0 + 4.749) / 13.722)
=0.34024867 / 0.34608658
=0.9831

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
=(0.342 - -0.003 - 1.324) / 14.075
=-0.0696

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 -3.11 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

May06May07May08May09May10May11May12May13May14May15
DSRI 1.1910.94440.9630.94081.18471.2870.85131.05480.87150.8594
GMI 1.11481.05471.01191.01441.01560.9671.10721.00670.98111.0299
AQI 8.28180.69341.02090.11520.91523.10190.2762.54670.92220.4129
SGI 0.93521.03281.04090.82750.86341.06461.14930.99331.10281.159
DEPI 1.29251.02020.70721.02130.91671.63641.03330.77961.29310.944
SGAI 1.08790.91620.98951.08481.07671.0140.96841.08950.92610.9287
LVGI 1.16560.92090.95680.89061.04781.26571.05761.27230.99431.0287
TATA 0.01760.00810.0052-0.062-0.00050.0596-0.02470.038-0.0451-0.0375
M-score 0.69-2.52-2.46-3.30-2.50-1.06-2.84-1.76-2.71-2.87

TSR Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 0.97930.98380.87150.75770.82950.93620.85941.01980.80030.84
GMI 0.97350.97330.98121.00431.01041.02861.03011.02531.03051.0107
AQI 1.72511.87030.92220.34860.35530.63830.41290.45521.07860.45
SGI 1.06151.11211.10281.11851.13061.13591.1591.1531.11411.0879
DEPI 0.87871.42581.41561.37651.34310.89970.87460.87290.9040.7323
SGAI 0.97770.92610.92610.92510.94080.93690.92870.91340.92990.9497
LVGI 0.96491.04520.99431.06071.08281.02591.02871.00520.99290.9831
TATA 0.050.0163-0.045-0.1578-0.10770.0101-0.03750.0728-0.0746-0.0696
M-score -1.93-1.93-2.70-3.56-3.26-2.51-2.88-2.19-2.86-3.11
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