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TSR Inc (NAS:TSRI)
Beneish M-Score
-1.93 (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 -1.93 signals that the company is a manipulator.

TSRI' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 0.66
Current: -1.93

-10000000
0.66

During the past 13 years, the highest Beneish M-Score of TSR Inc was 0.66. The lowest was -10000000.00. And the median was -2.56.


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 * 0.9834+0.528 * 0.9733+0.404 * 1.8703+0.892 * 1.1121+0.115 * 1.4258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9261+4.679 * 0.0163-0.327 * 1.0452
=-1.93

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

This Year (Feb14) TTM:Last Year (Feb13) TTM:
Accounts Receivable was $8.81 Mil.
Revenue was 12.128 + 12.166 + 12.087 + 12.55 = $48.93 Mil.
Gross Profit was 1.929 + 2.066 + 2.098 + 2.12 = $8.21 Mil.
Total Current Assets was $13.26 Mil.
Total Assets was $13.48 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 $8.22 Mil.
Total Current Liabilities was $4.55 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.091 + 0.032 + 0.011 + 0.011 = $-0.04 Mil.
Non Operating Income was 0.001 + 0.001 + -0.002 + 0.003 = $0.00 Mil.
Cash Flow from Operations was 0.655 + -0.102 + -0.215 + -0.597 = $-0.26 Mil.
Accounts Receivable was $8.05 Mil.
Revenue was 10.515 + 10.56 + 11.288 + 11.635 = $44.00 Mil.
Gross Profit was 1.641 + 1.755 + 1.85 + 1.942 = $7.19 Mil.
Total Current Assets was $13.05 Mil.
Total Assets was $13.16 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 $7.98 Mil.
Total Current Liabilities was $4.25 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)
=(8.805 / 48.931) / (8.051 / 43.998)
=0.17994727 / 0.18298559
=0.9834

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)
=(2.066 / 43.998) / (1.929 / 48.931)
=0.16337106 / 0.1678486
=0.9733

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 - (13.259 + 0.036) / 13.475) / (1 - (13.049 + 0.018) / 13.161)
=0.01335807 / 0.00714231
=1.8703

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
=48.931 / 43.998
=1.1121

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 + 0.018)) / (0.015 / (0.015 + 0.036))
=0.41935484 / 0.29411765
=1.4258

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)
=(8.223 / 48.931) / (7.984 / 43.998)
=0.16805297 / 0.18146279
=0.9261

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 + 4.546) / 13.475) / ((0 + 4.248) / 13.161)
=0.33736549 / 0.32277183
=1.0452

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
=(-0.037 - 0.003 - -0.259) / 13.475
=0.0163

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 -1.93 signals that the company is likely to 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

May04May05May06May07May08May09May10May11May12May13
DSRI 1.08430.76711.180.95580.95750.93491.18471.28770.8511.0551
GMI 0.98281.02311.11481.05471.01191.01441.01560.9671.10721.0067
AQI 1.43860.84448.28180.69341.02090.11520.91523.10190.2762.5467
SGI 0.98630.99460.93521.03281.04090.82750.86341.06461.14930.9933
DEPI 1.06791.61541.29251.02020.70721.02130.91671.63641.03330.7796
SGAI 1.05720.9721.08790.91620.98951.08481.07671.0140.96841.0895
LVGI 1.26151.02291.16560.92090.95680.89061.04781.26571.05761.2723
TATA 0.0511-0.13040.01370.00510.0004-0.0651-0.00960.0596-0.02470.038
M-score -2.09-3.290.66-2.52-2.48-3.32-2.54-1.06-2.84-1.76

TSR Inc Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DSRI 0.95820.90140.8510.90310.91650.91111.05521.06180.97890.9834
GMI 1.0471.0791.10731.08991.05981.02881.00640.98480.97350.9733
AQI 0.89120.26370.2760.96951.20131.23952.54675.73231.72511.8703
SGI 1.13451.16721.14931.09141.04370.99040.99331.01291.06151.1121
DEPI 1.27271.16361.19230.87880.81250.81970.74440.87530.87871.4258
SGAI 0.97130.93810.96841.01671.05971.11641.08951.05580.97770.9261
LVGI 1.28341.24351.05761.05751.25021.23471.27231.2040.96491.0452
TATA -0.0235-0.029-0.0247-0.0144-0.017-0.03870.0380.0760.050.0163
M-score -2.58-2.86-2.83-2.56-2.60-2.76-1.76-0.24-1.93-1.93
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