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GuruFocus has detected 4 Warning Signs with BroadVision Inc $BVSN.
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BroadVision Inc (NAS:BVSN)
Beneish M-Score
-1.85 (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.

BroadVision Inc has a M-score of -1.85 signals that the company is a manipulator.

BVSN' s Beneish M-Score Range Over the Past 10 Years
Min: -13.01   Max: 18.81
Current: -1.85

-13.01
18.81

During the past 13 years, the highest Beneish M-Score of BroadVision Inc was 18.81. The lowest was -13.01. 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 BroadVision 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 * 1.6946+0.528 * 1.0692+0.404 * 1.4809+0.892 * 0.8642+0.115 * 1.085
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0286+4.679 * 0.0026-0.327 * 1.4259
=-1.85

* 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 $1.51 Mil.
Revenue was 1.808 + 2.058 + 1.951 + 1.922 = $7.74 Mil.
Gross Profit was 0.959 + 1.286 + 1.059 + 1.072 = $4.38 Mil.
Total Current Assets was $20.40 Mil.
Total Assets was $20.61 Mil.
Property, Plant and Equipment(Net PPE) was $0.05 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.04 Mil.
Selling, General & Admin. Expense(SGA) was $7.55 Mil.
Total Current Liabilities was $5.24 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -2.598 + -2.389 + -2.442 + -2.603 = $-10.03 Mil.
Non Operating Income was 0.132 + -0.319 + 0.032 + 0.079 = $-0.08 Mil.
Cash Flow from Operations was -2.15 + -2.386 + -3.154 + -2.319 = $-10.01 Mil.
Accounts Receivable was $1.03 Mil.
Revenue was 2.009 + 2.677 + 2.082 + 2.187 = $8.96 Mil.
Gross Profit was 1.199 + 1.501 + 1.384 + 1.33 = $5.41 Mil.
Total Current Assets was $29.48 Mil.
Total Assets was $29.70 Mil.
Property, Plant and Equipment(Net PPE) was $0.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.06 Mil.
Selling, General & Admin. Expense(SGA) was $8.50 Mil.
Total Current Liabilities was $5.30 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)
=(1.507 / 7.739) / (1.029 / 8.955)
=0.194728 / 0.11490787
=1.6946

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)
=(5.414 / 8.955) / (4.376 / 7.739)
=0.60457845 / 0.56544773
=1.0692

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 - (20.404 + 0.053) / 20.606) / (1 - (29.475 + 0.077) / 29.697)
=0.0072309 / 0.00488265
=1.4809

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
=7.739 / 8.955
=0.8642

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))
=(0.062 / (0.062 + 0.077)) / (0.037 / (0.037 + 0.053))
=0.44604317 / 0.41111111
=1.085

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)
=(7.554 / 7.739) / (8.498 / 8.955)
=0.9760951 / 0.94896706
=1.0286

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 + 5.239) / 20.606) / ((0 + 5.295) / 29.697)
=0.25424634 / 0.17830084
=1.4259

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
=(-10.032 - -0.076 - -10.009) / 20.606
=0.0026

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.

BroadVision Inc has a M-score of -1.85 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 local exchange's currency.

BroadVision Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.7831.49431.0080.8551.19141.13730.85261.0680.76670.6085
GMI 0.92131.09060.99481.06621.07810.98230.97051.03751.0551.0838
AQI 0.85270.0710.90891.01820.1221.50761.06721.22130.95721.5055
SGI 0.96220.71780.86230.70470.80460.86171.03130.87090.6950.8409
DEPI 0.94451.38411.2540.88190.7391.87460.77610.80340.94481.1566
SGAI 0.89921.36981.01711.32061.06551.15080.93281.10561.32421.087
LVGI 0.63411.15830.71830.82510.98580.92550.92010.90481.38071.1133
TATA 0.0405-0.38160.0402-0.01650.0225-0.01570.01020.0592-0.0382-0.014
M-score -2.49-4.46-2.33-2.92-2.72-2.26-2.52-2.16-3.32-2.83

BroadVision Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.0680.85720.48570.43710.76670.74341.56571.47530.60851.6946
GMI 1.03751.01540.93140.90781.0551.11271.1621.23461.08381.0692
AQI 1.22131.27431.19351.1870.95720.97481.08211.12131.50551.4809
SGI 0.87090.88730.87590.85220.6950.68430.71740.77310.84090.8642
DEPI 0.80340.74310.72450.82410.94481.09791.24691.25251.15661.085
SGAI 1.10561.03211.07241.08171.32421.43791.36351.2431.0871.0286
LVGI 0.90480.98141.07941.12531.38071.15931.1881.22091.11331.4259
TATA 0.05920.0720.0407-0.0119-0.0382-0.03570.00370.0149-0.0140.0026
M-score -2.16-2.29-2.90-3.23-3.32-3.23-2.17-2.09-2.83-1.85
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