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GuruFocus has detected 5 Warning Signs with Bioanalytical Systems Inc $BASI.
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Bioanalytical Systems Inc (NAS:BASI)
Beneish M-Score
-3.62 (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.

Bioanalytical Systems Inc has a M-score of -3.62 suggests that the company is not a manipulator.

BASI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.07   Max: -1.43
Current: -3.62

-4.07
-1.43

During the past 13 years, the highest Beneish M-Score of Bioanalytical Systems Inc was -1.43. The lowest was -4.07. And the median was -2.78.


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 Bioanalytical Systems 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 * 0.9719+0.528 * 1.0744+0.404 * 0.1285+0.892 * 1.0646+0.115 * 0.8043
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0727+4.679 * -0.1696-0.327 * 1.0911
=-3.62

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

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $2.72 Mil.
Revenue was 6.359 + 6.174 + 5.154 + 5.053 = $22.74 Mil.
Gross Profit was 2.043 + 1.859 + 0.952 + 1.173 = $6.03 Mil.
Total Current Assets was $5.32 Mil.
Total Assets was $20.99 Mil.
Property, Plant and Equipment(Net PPE) was $15.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.73 Mil.
Selling, General & Admin. Expense(SGA) was $6.24 Mil.
Total Current Liabilities was $12.92 Mil.
Long-Term Debt was $0.13 Mil.
Net Income was 0.417 + 0.017 + -2.037 + -0.433 = $-2.04 Mil.
Non Operating Income was 0.001 + 0.001 + 0.004 + 0.022 = $0.03 Mil.
Cash Flow from Operations was -0.448 + 1.009 + 0.79 + 0.144 = $1.50 Mil.
Accounts Receivable was $2.63 Mil.
Revenue was 5.339 + 4.895 + 4.977 + 6.15 = $21.36 Mil.
Gross Profit was 1.316 + 0.984 + 1.293 + 2.49 = $6.08 Mil.
Total Current Assets was $5.98 Mil.
Total Assets was $23.04 Mil.
Property, Plant and Equipment(Net PPE) was $15.94 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.40 Mil.
Selling, General & Admin. Expense(SGA) was $5.46 Mil.
Total Current Liabilities was $13.08 Mil.
Long-Term Debt was $0.05 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)
=(2.721 / 22.74) / (2.63 / 21.361)
=0.11965699 / 0.12312158
=0.9719

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)
=(6.083 / 21.361) / (6.027 / 22.74)
=0.28477131 / 0.26503958
=1.0744

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 - (5.316 + 15.54) / 20.987) / (1 - (5.979 + 15.938) / 23.036)
=0.00624196 / 0.04857614
=0.1285

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
=22.74 / 21.361
=1.0646

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))
=(1.395 / (1.395 + 15.938)) / (1.728 / (1.728 + 15.54))
=0.08048232 / 0.10006949
=0.8043

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)
=(6.235 / 22.74) / (5.46 / 21.361)
=0.27418646 / 0.25560601
=1.0727

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)
=((0.134 + 12.923) / 20.987) / ((0.053 + 13.082) / 23.036)
=0.62214704 / 0.57019448
=1.0911

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
=(-2.036 - 0.028 - 1.495) / 20.987
=-0.1696

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.

Bioanalytical Systems Inc has a M-score of -3.62 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.

Bioanalytical Systems Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 1.02751.12630.82720.71350.96370.9711.37510.63391.23010.6305
GMI 1.10940.87491.37150.9390.80381.30760.75830.9870.98161.5241
AQI 0.91140.90540.94991.05150.86671.10851.05090.86820.98120.1234
SGI 1.11880.89930.73380.90551.15160.85110.78231.11410.92330.9006
DEPI 1.00061.13741.04241.03561.12710.86911.17861.01581.10370.9376
SGAI 0.64521.31411.18750.8860.85851.18880.83951.02590.96311.1356
LVGI 0.95520.99971.08531.07370.86991.23580.91440.94850.91541.1822
TATA -0.0477-0.0519-0.247-0.1726-0.0172-0.2299-0.0558-0.0776-0.0629-0.2122
M-score -2.47-2.84-3.91-3.65-2.53-3.63-2.62-3.12-2.60-4.07

Bioanalytical Systems Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.10011.07141.15741.23010.6240.97650.92180.63051.54190.9719
GMI 1.02411.11451.0240.98161.05591.09791.4121.52411.23781.0744
AQI 0.79580.82790.78370.98121.05780.96930.96410.12340.11340.1285
SGI 1.07671.03371.01980.92330.89830.88920.83940.90060.99871.0646
DEPI 0.99611.0031.0441.10371.11721.11821.08060.93760.88460.8043
SGAI 1.05340.98090.86550.96310.9490.94091.26121.13561.1171.0727
LVGI 0.92650.93550.84510.91540.90661.01091.17291.18221.21131.0911
TATA -0.0373-0.0671-0.033-0.0629-0.0903-0.0922-0.146-0.2122-0.2476-0.1696
M-score -2.55-2.68-2.47-2.60-3.23-2.97-3.27-4.07-3.48-3.62
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