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BSQUARE (BSQUARE) Beneish M-Score : -1.97 (As of May. 12, 2024)


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What is BSQUARE Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.97 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for BSQUARE's Beneish M-Score or its related term are showing as below:

BSQR' s Beneish M-Score Range Over the Past 10 Years
Min: -4.04   Med: -2.77   Max: -1.69
Current: -1.97

During the past 13 years, the highest Beneish M-Score of BSQUARE was -1.69. The lowest was -4.04. And the median was -2.77.


BSQUARE Beneish M-Score Historical Data

The historical data trend for BSQUARE's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BSQUARE Beneish M-Score Chart

BSQUARE Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.42 -2.95 -3.70 -2.65 -2.66

BSQUARE Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 -2.66 -2.26 -2.56 -1.97

Competitive Comparison of BSQUARE's Beneish M-Score

For the Software - Application subindustry, BSQUARE's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BSQUARE's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, BSQUARE's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where BSQUARE's Beneish M-Score falls into.



BSQUARE Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 BSQUARE 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 * 1.5357+0.528 * 0.9581+0.404 * 1.1241+0.892 * 0.8485+0.115 * 0.5073
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1384+4.679 * 0.035154-0.327 * 0.8711
=-1.97

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was $6.08 Mil.
Revenue was 9.292 + 6.525 + 8.141 + 7.955 = $31.91 Mil.
Gross Profit was 0.995 + 1.372 + 1.285 + 1.236 = $4.89 Mil.
Total Current Assets was $38.31 Mil.
Total Assets was $39.54 Mil.
Property, Plant and Equipment(Net PPE) was $1.21 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.52 Mil.
Selling, General, & Admin. Expense(SGA) was $7.72 Mil.
Total Current Liabilities was $5.18 Mil.
Long-Term Debt & Capital Lease Obligation was $0.82 Mil.
Net Income was -1.133 + -0.26 + -0.071 + -1.22 = $-2.68 Mil.
Non Operating Income was 0.419 + 0.392 + 0.377 + -0.307 = $0.88 Mil.
Cash Flow from Operations was -1.759 + -0.502 + -1.47 + -1.224 = $-4.96 Mil.
Total Receivables was $4.67 Mil.
Revenue was 8.406 + 10.394 + 9.732 + 9.078 = $37.61 Mil.
Gross Profit was 1.135 + 1.599 + 1.483 + 1.302 = $5.52 Mil.
Total Current Assets was $42.28 Mil.
Total Assets was $44.46 Mil.
Property, Plant and Equipment(Net PPE) was $2.16 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.39 Mil.
Selling, General, & Admin. Expense(SGA) was $7.99 Mil.
Total Current Liabilities was $6.65 Mil.
Long-Term Debt & Capital Lease Obligation was $1.11 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(6.079 / 31.913) / (4.665 / 37.61)
=0.190487 / 0.124036
=1.5357

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)
=(5.519 / 37.61) / (4.888 / 31.913)
=0.146743 / 0.153166
=0.9581

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (38.311 + 1.205) / 39.54) / (1 - (42.279 + 2.161) / 44.464)
=0.000607 / 0.00054
=1.1241

4. SGI = Sales Growth Index

Ratio of Revenue 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
=31.913 / 37.61
=0.8485

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(0.387 / (0.387 + 2.161)) / (0.515 / (0.515 + 1.205))
=0.151884 / 0.299419
=0.5073

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(7.717 / 31.913) / (7.989 / 37.61)
=0.241814 / 0.212417
=1.1384

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.824 + 5.184) / 39.54) / ((1.107 + 6.649) / 44.464)
=0.151947 / 0.174433
=0.8711

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
=(-2.684 - 0.881 - -4.955) / 39.54
=0.035154

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

BSQUARE has a M-score of -1.97 suggests that the company is unlikely to be a manipulator.


BSQUARE Beneish M-Score Related Terms

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BSQUARE (BSQUARE) Business Description

Traded in Other Exchanges
N/A
Address
1415 Western Avenue, Suite 700, Seattle, WA, USA, 98101
BSQUARE Corp provides software solutions and related engineering services to businesses that develop, market, and sell standalone intelligent systems. Its business segments are Partner Solutions and Edge to Cloud. It focuses on a system that utilizes various Microsoft Windows Embedded operating systems as well as devices running other popular operating systems such as Android, Linux, and QNX. The company's customers include original equipment manufacturers, original design manufacturers, corporate enterprises, silicon vendors, and peripheral vendors. The group has a business presence and generates prime revenue from the Partner solutions segment.
Executives
Richard Alan Karp director 849-B INDEPENDENCE AVE, MOUNTAIN VIEW CA 94043
Bernee Dl Strom director 5500 LAKE WASHINGTON BLVD NE, UNIT 3B, KIRKLAND WA 98033
Ralph C Derrickson director, officer: President and CEO 1120 S CAPITAL OF TEXAS HIGHWAY, BLDG 3 SUITE 220, AUSTIN TX 78746
Davin Cushman director C/O BSQUARE CORPORATION, 110 110TH AVE NE SUITE 300, BELLEVUE WA 98004
Mary Jesse director 19301 SE 16TH STREET, SAMMAMISH WA 98075
Harries Andrew Stanley Guy director 6155 SOUTHLANDS PLACE, VANCOUVER A1 V6N 1M9
Robert J Chamberlain director 4017 56TH AVENUE SW, SEATTLE WA 98116
Christopher Wheaton officer: Chief Financial Officer C/O BSQUARE CORPORATION, 110 - 110TH AVE NE STE 300, BELLEVUE WA 98004
Palogic Value Fund, Lp other: Member of 10% Group 5310 HARVEST HILL ROAD, SUITE 110, DALLAS TX 75230
Palogic Value Management, L.p. other: Member of 10% Group 5310 HARVEST HILL ROAD, SUITE 110, DALLAS TX 75230
Palogic Capital Management, Llc other: Member of 10% Group 5310 HARVEST HILL ROAD, SUITE 110, DALLAS TX 75230
Ryan L. Vardeman director 5310 HARVEST HILL ROAD, SUITE 110, DALLAS TX 75230
Kevin T Walsh officer: Acting CEO C/O BSQUARE CORPORATION, 110 110TH AVE NE #300, BELLEVUE WA 98004
Robert James Peters director 110 110TH AVENUE NE, SUITE 300, BELLEVUE WA 98004
Giles Frith officer: Chief Operating Officer C/O BSQUARE CORPORATION, 110 110TH AVE NE STE 300, BELLEVUE WA 98004