R8 Capital Investments (LSE:MODE) Beneish M-Score : 0.00 (As of May. 31, 2024)

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What is R8 Capital Investments 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 R8 Capital Investments's Beneish M-Score or its related term are showing as below:

During the past 6 years, the highest Beneish M-Score of R8 Capital Investments was 0.00. The lowest was 0.00. And the median was 0.00.

R8 Capital Investments Beneish M-Score Historical Data

The historical data trend for R8 Capital Investments'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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R8 Capital Investments Beneish M-Score Chart

R8 Capital Investments Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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273.95

-3.70

-10.65

R8 Capital Investments Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
Beneish M-Score	Get a 7-Day Free Trial					273.95	-	-3.70	-	-10.65

Competitive Comparison of R8 Capital Investments's Beneish M-Score

For the Software - Infrastructure subindustry, R8 Capital Investments'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.

R8 Capital Investments's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, R8 Capital Investments's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where R8 Capital Investments's Beneish M-Score falls into.

R8 Capital Investments 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 R8 Capital Investments 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 * 0.0924

0.528 * 1.933

0.404 * 2.0971

0.892 * 0.8233

0.115 * 0.7746

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.964

4.679 * -1.041237

0.327 * 10.864

-10.65

This Year (Dec22) TTM:

Last Year (Dec21) TTM:

Total Receivables was £0.09 Mil.
Revenue was £1.08 Mil.
Gross Profit was £0.07 Mil.
Total Current Assets was £1.04 Mil.
Total Assets was £1.07 Mil.
Property, Plant and Equipment(Net PPE) was £0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.02 Mil.
Selling, General, & Admin. Expense(SGA) was £6.69 Mil.
Total Current Liabilities was £0.99 Mil.
Long-Term Debt & Capital Lease Obligation was £1.62 Mil.
Net Income was £-6.41 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-5.30 Mil.

Total Receivables was £1.13 Mil.
Revenue was £1.31 Mil.
Gross Profit was £0.16 Mil.
Total Current Assets was £5.88 Mil.
Total Assets was £5.97 Mil.
Property, Plant and Equipment(Net PPE) was £0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.03 Mil.
Selling, General, & Admin. Expense(SGA) was £8.43 Mil.
Total Current Liabilities was £1.34 Mil.
Long-Term Debt & Capital Lease Obligation was £0.00 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)
	=	(0.086 / 1.081)	/	(1.13 / 1.313)
	=	0.079556	/	0.860625
	=	0.0924

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)
	=	(0.162 / 1.313)	/	(0.069 / 1.081)
	=	0.123382	/	0.06383
	=	1.933

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 - (1.035 + 0.011) / 1.067)	/	(1 - (5.878 + 0.033) / 5.967)
	=	0.019681	/	0.009385
	=	2.0971

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
	=	1.081	/	1.313
	=	0.8233

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))
	=	(0.028 / (0.028 + 0.033))	/	(0.016 / (0.016 + 0.011))
	=	0.459016	/	0.592593
	=	0.7746

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)
	=	(6.688 / 1.081)	/	(8.427 / 1.313)
	=	6.186864	/	6.418126
	=	0.964

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)
	=	((1.622 + 0.987) / 1.067)	/	((0 + 1.343) / 5.967)
	=	2.445173	/	0.225071
	=	10.864

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
	=	(-6.413 - 0	-	-5.302)	/	1.067
	=	-1.041237

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.

R8 Capital Investments has a M-score of -10.65 suggests that the company is unlikely to be a manipulator.

R8 Capital Investments Beneish M-Score Related Terms

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R8 Capital Investments (LSE:MODE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » R8 Capital Investments PLC (LSE:MODE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

5-7 Cranwood Street, Finsgate, London, GBR, EC1V 9EE

Website

https://www.r8plc.com

R8 Capital Investments PLC Formerly Mode Global Holdings PLC operates in the Fintech industry. It is engaged in building a financial services business to support an increasingly digitized economy and financial system, combining of banking, payments, investment, loyalty, and digital assets. Its core platform, 'Mode', is a financial services ecosystem that provides the full scope of banking and financial services to the holders of both traditional and crypto assets.

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