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GuruFocus has detected 1 Warning Sign with Streamline Health Solutions Inc $STRM.
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Streamline Health Solutions Inc (NAS:STRM)
Beneish M-Score
-3.46 (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.

Streamline Health Solutions Inc has a M-score of -3.46 suggests that the company is not a manipulator.

STRM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.87   Max: 0.27
Current: -3.46

-4.87
0.27

During the past 13 years, the highest Beneish M-Score of Streamline Health Solutions Inc was 0.27. The lowest was -4.87. And the median was -3.33.


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 Streamline Health Solutions 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 * 1.0049+0.528 * 1.1062+0.404 * 1.0602+0.892 * 0.9134+0.115 * 0.9719
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1235+4.679 * -0.2033-0.327 * 1.0348
=-3.46

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

This Year (Apr17) TTM:Last Year (Apr16) TTM:
Accounts Receivable was $3.72 Mil.
Revenue was 5.924 + 6.383 + 6.635 + 7.374 = $26.32 Mil.
Gross Profit was 3.056 + 3.297 + 3.412 + 4.883 = $14.65 Mil.
Total Current Assets was $9.15 Mil.
Total Assets was $38.06 Mil.
Property, Plant and Equipment(Net PPE) was $1.71 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.96 Mil.
Selling, General & Admin. Expense(SGA) was $12.86 Mil.
Total Current Liabilities was $11.28 Mil.
Long-Term Debt was $4.74 Mil.
Net Income was -2.043 + -1.019 + -1.93 + -0.734 = $-5.73 Mil.
Non Operating Income was -0.038 + 0.145 + -0.061 + -0.045 = $0.00 Mil.
Cash Flow from Operations was -1.455 + 2.252 + -1.383 + 2.598 = $2.01 Mil.
Accounts Receivable was $4.05 Mil.
Revenue was 6.667 + 6.371 + 7.155 + 8.619 = $28.81 Mil.
Gross Profit was 3.941 + 3.687 + 4.252 + 5.86 = $17.74 Mil.
Total Current Assets was $12.68 Mil.
Total Assets was $45.47 Mil.
Property, Plant and Equipment(Net PPE) was $2.14 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.59 Mil.
Selling, General & Admin. Expense(SGA) was $12.54 Mil.
Total Current Liabilities was $12.79 Mil.
Long-Term Debt was $5.70 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)
=(3.721 / 26.316) / (4.054 / 28.812)
=0.14139687 / 0.14070526
=1.0049

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)
=(17.74 / 28.812) / (14.648 / 26.316)
=0.61571567 / 0.55661955
=1.1062

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 - (9.154 + 1.71) / 38.059) / (1 - (12.681 + 2.144) / 45.473)
=0.71454846 / 0.67398236
=1.0602

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
=26.316 / 28.812
=0.9134

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))
=(5.591 / (5.591 + 2.144)) / (4.962 / (4.962 + 1.71))
=0.72281836 / 0.74370504
=0.9719

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)
=(12.863 / 26.316) / (12.535 / 28.812)
=0.48879009 / 0.43506178
=1.1235

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)
=((4.737 + 11.28) / 38.059) / ((5.703 + 12.79) / 45.473)
=0.42084658 / 0.40668089
=1.0348

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
=(-5.726 - 0.001 - 2.012) / 38.059
=-0.2033

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.

Streamline Health Solutions Inc has a M-score of -3.46 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.

Streamline Health Solutions Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
DSRI 1.22860.28961.29351.41031.76021.39460.76830.89410.59081.1189
GMI 1.07131.12320.97151.30780.74570.93880.9531.01560.8861.0406
AQI 1.12021.23561.11310.94731.15591.00230.8621.21480.96621.0662
SGI 1.04390.98331.1180.96690.97221.38851.19890.96951.02490.9557
DEPI 0.8960.99350.97511.72360.95440.71850.7551.5950.62140.9523
SGAI 0.99831.09370.7571.20391.05611.10141.2061.15050.80831.0188
LVGI 1.14631.02580.94531.25861.07580.8510.65421.24070.99980.9696
TATA -0.2434-0.3574-0.0494-0.3983-0.11340.0038-0.125-0.1822-0.2485-0.1507
M-score -3.34-4.69-2.25-3.89-2.45-1.79-3.13-3.40-4.08-3.07

Streamline Health Solutions Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DSRI 0.89410.74990.83010.55940.59080.60390.43060.90991.11891.0049
GMI 1.01560.99630.90770.90130.8860.86750.93110.97831.04061.1062
AQI 1.21481.0140.97890.96360.96621.00271.081.15571.06621.0602
SGI 0.96950.92651.02841.0361.02491.07330.97680.94770.95570.9134
DEPI 1.5951.34770.9391.0140.62140.63930.63920.65380.95230.9719
SGAI 1.15051.11290.94620.78620.80830.72580.78310.98121.01881.1235
LVGI 1.24071.19371.14381.04510.99980.9340.89140.94760.96961.0348
TATA -0.1822-0.2527-0.2497-0.2503-0.2485-0.191-0.218-0.1612-0.1507-0.2033
M-score -3.40-4.00-3.88-4.07-4.08-3.71-4.02-3.33-3.07-3.46
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