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Sonic Foundry Beneish M-Score

: -1.90 (As of Today)
View and export this data going back to 1998. Start your Free Trial

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 -1.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

OTCPK:SOFO' s Beneish M-Score Range Over the Past 10 Years
Min: -14.36   Med: -2.65   Max: 31.42
Current: -1.9

-14.36
31.42

During the past 13 years, the highest Beneish M-Score of Sonic Foundry was 31.42. The lowest was -14.36. And the median was -2.65.


Sonic Foundry Beneish M-Score Historical Data

The historical data trend for Sonic Foundry'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.

Sonic Foundry Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.34 -3.46 -3.21 -3.55 -3.09

Sonic Foundry Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -3.48 -3.09 -2.65 -2.53 -1.90

Competitive Comparison

For the Software - Application subindustry, Sonic Foundry'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.

   

Sonic Foundry Beneish M-Score Distribution

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

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



Sonic Foundry 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 Sonic Foundry 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 * 0.9232+0.528 * 1.0065+0.404 * 1.9278+0.892 * 1.0851+0.115 * 1.3762
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8924+4.679 * 0.012-0.327 * 0.7598
=-1.90

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $5.45 Mil.
Revenue was 8.661 + 8.711 + 9.165 + 10.154 = $36.69 Mil.
Gross Profit was 6.039 + 6.136 + 6.754 + 7.274 = $26.20 Mil.
Total Current Assets was $12.72 Mil.
Total Assets was $19.57 Mil.
Property, Plant and Equipment(Net PPE) was $5.83 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.09 Mil.
Selling, General, & Admin. Expense(SGA) was $17.12 Mil.
Total Current Liabilities was $12.29 Mil.
Long-Term Debt & Capital Lease Obligation was $2.30 Mil.
Net Income was 2.646 + 0.257 + 0.632 + 0.439 = $3.97 Mil.
Non Operating Income was 2.344 + -0.038 + 0.011 + 0.041 = $2.36 Mil.
Cash Flow from Operations was 0.473 + -0.002 + -1.268 + 2.179 = $1.38 Mil.
Accounts Receivable was $5.44 Mil.
Revenue was 7.917 + 8.666 + 8.015 + 9.214 = $33.81 Mil.
Gross Profit was 5.747 + 6.261 + 5.836 + 6.461 = $24.31 Mil.
Total Current Assets was $14.04 Mil.
Total Assets was $18.92 Mil.
Property, Plant and Equipment(Net PPE) was $4.37 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.21 Mil.
Selling, General, & Admin. Expense(SGA) was $17.68 Mil.
Total Current Liabilities was $14.98 Mil.
Long-Term Debt & Capital Lease Obligation was $3.58 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(5.448 / 36.691) / (5.438 / 33.812)
=0.14848328 / 0.16083047
=0.9232

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)
=(24.305 / 33.812) / (26.203 / 36.691)
=0.71882764 / 0.71415333
=1.0065

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 - (12.72 + 5.826) / 19.573) / (1 - (14.036 + 4.371) / 18.922)
=0.05247024 / 0.027217
=1.9278

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
=36.691 / 33.812
=1.0851

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))
=(1.207 / (1.207 + 4.371)) / (1.087 / (1.087 + 5.826))
=0.2163858 / 0.15723998
=1.3762

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)
=(17.121 / 36.691) / (17.68 / 33.812)
=0.46662669 / 0.52289128
=0.8924

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)
=((2.299 + 12.291) / 19.573) / ((3.584 + 14.98) / 18.922)
=0.7454146 / 0.98108022
=0.7598

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
=(3.974 - 2.358 - 1.382) / 19.573
=0.012

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.

Sonic Foundry has a M-score of -1.90 suggests that the company is unlikely to be a manipulator.


Sonic Foundry Beneish M-Score Related Terms

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Sonic Foundry Business Description

Sonic Foundry logo
Industry
Technology » Software NAICS : 511210 SIC : 7372
Traded in Other Exchanges
N/A
Address
222 W. Washington Avenue, Madison, WI, USA, 53703
Sonic Foundry Inc is engaged in the business of providing video enterprise solutions and services for the digital-first, distance learning, and corporate communications market. It offers video capture, management, and Webcasting solutions in education, business, and government. The company also offers video solutions, including Mediasite Video Platform, Mediasite Video Cloud, Mediasite Capture Solutions, Mediasite Events, Mediasite Services, and Mediasite Customer Care. The company has a geographical presence in the United States, Europe, and the Middle East, Asia, and other places.
Executives
Burish Mark D director, 10 percent owner HURLEY, BURISH, MILLIKEN S.C. 301 NORTH BROOM STREET MADISON WI 53703
Kopko Frederick H Jr director 4901 S ELLIS AVE CHICAGO IL 60615
Murphy Nelson A director 2300 W INNES ST SALISBURY NC 28144
Wiegand Brian director 8215 GREENWAY BLVD, SUITE 340 MIDDLETON WI 53562
Slayton David director 701 WASHINGTON AVE N. SUITE #400 MINNEAPOLIS WI 55401
Norregaard Michael officer: Chief Executive Officer 4891 ENCHANTED VALLEY ROAD MIDDLETON WI 53562
Burish Andrew D. 10 percent owner 8020 EXCELSIOR DRIVE MADISON WI 53717
Minor Kenneth A officer: Chief Financial Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MINOR KENNETH A a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Weis Gary director, officer: Chief Executive Officer & CTO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: WEIS GARY a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Lipps Robert M officer: Executive Vice President Sales 222 W. WASHINGTON AVE. MADISON WI 53703
Kleinman David director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: KLEINMAN DAVID a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Peercy Paul S director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PEERCY PAUL S a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Michael Janowiak director 549 W RANDOLPH #600 CHICAGO IL 60651
Buinevicius Rimas director, officer: Chairman & Strategy Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BUINEVICIUS RIMAS a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Schmidt Monty director, 10 percent owner, officer: Chief Technology Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SCHMIDT MONTY a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
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