WG Wearne (JSE:WEA) Beneish M-Score : 0.00 (As of Jun. 13, 2024)

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What is WG Wearne 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 WG Wearne's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of WG Wearne was 0.00. The lowest was 0.00. And the median was 0.00.

WG Wearne Beneish M-Score Historical Data

The historical data trend for WG Wearne'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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WG Wearne Beneish M-Score Chart

WG Wearne Annual Data

Trend

Feb08

Feb09

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Beneish M-Score

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WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of WG Wearne's Beneish M-Score

For the Building Materials subindustry, WG Wearne'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.

WG Wearne's Beneish M-Score Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, WG Wearne's Beneish M-Score distribution charts can be found below:

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

WG Wearne 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 WG Wearne 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 * 1.4095

0.528 * 1.9677

0.404 * 1.3523

0.892 * 0.7608

0.115 * 0.8996

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.151624

0.327 * 1.0815

-2.41

This Year (Feb17) TTM:

Last Year (Feb16) TTM:

Total Receivables was R51.7 Mil.
Revenue was R389.4 Mil.
Gross Profit was R41.8 Mil.
Total Current Assets was R78.2 Mil.
Total Assets was R341.3 Mil.
Property, Plant and Equipment(Net PPE) was R250.5 Mil.
Depreciation, Depletion and Amortization(DDA) was R28.8 Mil.
Selling, General, & Admin. Expense(SGA) was R0.0 Mil.
Total Current Liabilities was R270.1 Mil.
Long-Term Debt & Capital Lease Obligation was R43.7 Mil.
Net Income was R-27.9 Mil.
Gross Profit was R0.0 Mil.
Cash Flow from Operations was R23.8 Mil.

Total Receivables was R48.2 Mil.
Revenue was R511.9 Mil.
Gross Profit was R108.1 Mil.
Total Current Assets was R97.8 Mil.
Total Assets was R403.2 Mil.
Property, Plant and Equipment(Net PPE) was R294.4 Mil.
Depreciation, Depletion and Amortization(DDA) was R30.1 Mil.
Selling, General, & Admin. Expense(SGA) was R0.0 Mil.
Total Current Liabilities was R212.9 Mil.
Long-Term Debt & Capital Lease Obligation was R130.0 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)
	=	(51.684 / 389.429)	/	(48.195 / 511.859)
	=	0.132717	/	0.094157
	=	1.4095

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)
	=	(108.096 / 511.859)	/	(41.796 / 389.429)
	=	0.211183	/	0.107326
	=	1.9677

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 - (78.168 + 250.524) / 341.304)	/	(1 - (97.761 + 294.426) / 403.205)
	=	0.036952	/	0.027326
	=	1.3523

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
	=	389.429	/	511.859
	=	0.7608

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))
	=	(30.103 / (30.103 + 294.426))	/	(28.802 / (28.802 + 250.524))
	=	0.092759	/	0.103112
	=	0.8996

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 / 389.429)	/	(0 / 511.859)
	=	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)
	=	((43.741 + 270.132) / 341.304)	/	((129.95 + 212.922) / 403.205)
	=	0.919629	/	0.850366
	=	1.0815

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
	=	(-27.904 - 0	-	23.846)	/	341.304
	=	-0.151624

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.

WG Wearne has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.

WG Wearne Beneish M-Score Related Terms

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WG Wearne (JSE:WEA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WG Wearne Ltd (JSE:WEA) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

300 Acacia Road, Stonemill Office Park, P.O Box 1674, 3 Kiepersol House, Cresta, ZAF, 2118

Website

http://www.wearne.co.za

WG Wearne Ltd is a supplier of materials and contracting services to the building and construction industry with a complete building material solution. The company is involved in various big construction projects such as the construction of Rand Afrikaans University, the Western Bypass, the Lesotho Highlands Water Scheme, Soccer City and FNB in Fairlands Johannesburg. It operates across South Africa with concentrated operations in Limpopo and Gauteng provinces. its products include sub base materials, concrete stone, road stone, dump rock, ballast stone, crusher sand, building sand, builders mix, plaster sand, generic concrete range, Wearne specialty concrete, high-performance concrete, base course materials and sub base materials.