Arafura Pearls Holdings Limited (ASX:APB) Beneish M-Score : 0.00 (As of May. 26, 2024)

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What is Arafura Pearls Holdings Limited 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.

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

During the past 5 years, the highest Beneish M-Score of Arafura Pearls Holdings Limited was 0.00. The lowest was 0.00. And the median was 0.00.

Arafura Pearls Holdings Limited Beneish M-Score Historical Data

The historical data trend for Arafura Pearls Holdings Limited'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.

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Arafura Pearls Holdings Limited Beneish M-Score Chart

Arafura Pearls Holdings Limited Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Beneish M-Score

Arafura Pearls Holdings Limited Semi-Annual Data

Beneish M-Score

Competitive Comparison of Arafura Pearls Holdings Limited's Beneish M-Score

For the Apparel Manufacturing subindustry, Arafura Pearls Holdings Limited'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.

Arafura Pearls Holdings Limited's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arafura Pearls Holdings Limited's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Arafura Pearls Holdings Limited's Beneish M-Score falls into.

Arafura Pearls Holdings Limited 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 Arafura Pearls Holdings Limited for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.0405

0.528 * 0.9306

0.404 * 0.9301

0.892 * 6.1284

0.115 * 0.9722

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.72127

0.327 * 1.2035

-2.30

This Year (Jun10) TTM:

Last Year (Jun09) TTM:

Total Receivables was A$1.20 Mil.
Revenue was A$5.25 Mil.
Gross Profit was A$5.07 Mil.
Total Current Assets was A$10.60 Mil.
Total Assets was A$44.16 Mil.
Property, Plant and Equipment(Net PPE) was A$7.28 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.38 Mil.
Selling, General, & Admin. Expense(SGA) was A$0.00 Mil.
Total Current Liabilities was A$9.49 Mil.
Long-Term Debt & Capital Lease Obligation was A$2.23 Mil.
Net Income was A$-28.21 Mil.
Gross Profit was A$4.09 Mil.
Cash Flow from Operations was A$-0.45 Mil.

Total Receivables was A$4.83 Mil.
Revenue was A$0.86 Mil.
Gross Profit was A$0.77 Mil.
Total Current Assets was A$20.45 Mil.
Total Assets was A$78.10 Mil.
Property, Plant and Equipment(Net PPE) was A$7.66 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.41 Mil.
Selling, General, & Admin. Expense(SGA) was A$0.00 Mil.
Total Current Liabilities was A$14.65 Mil.
Long-Term Debt & Capital Lease Obligation was A$2.57 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)
	=	(1.198 / 5.252)	/	(4.826 / 0.857)
	=	0.228104	/	5.631272
	=	0.0405

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)
	=	(0.77 / 0.857)	/	(5.071 / 5.252)
	=	0.898483	/	0.965537
	=	0.9306

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 - (10.595 + 7.275) / 44.161)	/	(1 - (20.446 + 7.664) / 78.103)
	=	0.595344	/	0.640091
	=	0.9301

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
	=	5.252	/	0.857
	=	6.1284

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))
	=	(1.407 / (1.407 + 7.664))	/	(1.381 / (1.381 + 7.275))
	=	0.15511	/	0.159543
	=	0.9722

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)
	=	(0 / 5.252)	/	(0 / 0.857)
	=	0	/	0
	=	1

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)
	=	((2.231 + 9.486) / 44.161)	/	((2.565 + 14.654) / 78.103)
	=	0.265325	/	0.220465
	=	1.2035

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
	=	(-28.21 - 4.094	-	-0.452)	/	44.161
	=	-0.72127

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.

Arafura Pearls Holdings Limited has a M-score of -2.30 suggests that the company is unlikely to be a manipulator.

Arafura Pearls Holdings Limited Beneish M-Score Related Terms

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