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Nanophase Technologies (Nanophase Technologies) Beneish M-Score : -3.23 (As of May. 16, 2024)


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What is Nanophase Technologies 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.

Good Sign:

Beneish M-Score -3.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NANX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.76   Med: -2.51   Max: 2.54
Current: -3.23

During the past 13 years, the highest Beneish M-Score of Nanophase Technologies was 2.54. The lowest was -3.76. And the median was -2.51.


Nanophase Technologies Beneish M-Score Historical Data

The historical data trend for Nanophase Technologies'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.

Nanophase Technologies Beneish M-Score Chart

Nanophase Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.45 -0.31 -2.08 -2.57 -3.23

Nanophase Technologies Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Beneish M-Score Get a 7-Day Free Trial 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 -3.19 -3.24 -3.98 -3.23 -

Competitive Comparison of Nanophase Technologies's Beneish M-Score

For the Specialty Chemicals subindustry, Nanophase Technologies'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.


Nanophase Technologies's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Nanophase Technologies's Beneish M-Score distribution charts can be found below:

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



Nanophase Technologies 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 Nanophase Technologies 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 * 1.235+0.528 * 0.8799+0.404 * 0.4094+0.892 * 0.9765+0.115 * 0.7403
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8532+4.679 * 0.071187-0.327 * 0.839
=-2.21

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was $5.28 Mil.
Revenue was 9.868 + 8.011 + 7.958 + 11.872 = $37.71 Mil.
Gross Profit was 3.58 + 0.471 + 1.53 + 3.675 = $9.26 Mil.
Total Current Assets was $22.08 Mil.
Total Assets was $38.50 Mil.
Property, Plant and Equipment(Net PPE) was $16.43 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.80 Mil.
Selling, General, & Admin. Expense(SGA) was $6.94 Mil.
Total Current Liabilities was $12.18 Mil.
Long-Term Debt & Capital Lease Obligation was $15.14 Mil.
Net Income was 0.893 + -2.128 + -1.436 + 0.333 = $-2.34 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -3.855 + -2.65 + 2.605 + -1.179 = $-5.08 Mil.
Total Receivables was $4.38 Mil.
Revenue was 9.457 + 8.261 + 9.678 + 11.222 = $38.62 Mil.
Gross Profit was 2.149 + 0.963 + 2.493 + 2.736 = $8.34 Mil.
Total Current Assets was $14.53 Mil.
Total Assets was $31.48 Mil.
Property, Plant and Equipment(Net PPE) was $16.95 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.61 Mil.
Selling, General, & Admin. Expense(SGA) was $8.33 Mil.
Total Current Liabilities was $16.86 Mil.
Long-Term Debt & Capital Lease Obligation was $9.75 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)
=(5.282 / 37.709) / (4.38 / 38.618)
=0.140073 / 0.113419
=1.235

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)
=(8.341 / 38.618) / (9.256 / 37.709)
=0.215987 / 0.245459
=0.8799

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 - (22.077 + 16.425) / 38.504) / (1 - (14.525 + 16.949) / 31.478)
=5.2E-5 / 0.000127
=0.4094

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
=37.709 / 38.618
=0.9765

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))
=(0.605 / (0.605 + 16.949)) / (0.802 / (0.802 + 16.425))
=0.034465 / 0.046555
=0.7403

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)
=(6.942 / 37.709) / (8.333 / 38.618)
=0.184094 / 0.21578
=0.8532

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)
=((15.136 + 12.177) / 38.504) / ((9.751 + 16.863) / 31.478)
=0.709355 / 0.845479
=0.839

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
=(-2.338 - 0 - -5.079) / 38.504
=0.071187

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.

Nanophase Technologies has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.


Nanophase Technologies Beneish M-Score Related Terms

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Nanophase Technologies (Nanophase Technologies) Business Description

Traded in Other Exchanges
N/A
Address
1319 Marquette Drive, Romeoville, IL, USA, 60446
Nanophase Technologies Corp is a U.S based company engaged in the production of engineered nanomaterial solutions and larger, sub-micron, materials such as personal care sunscreens, architectural coatings, industrial coating applications, and abrasion-resistant additives, plastics additives, medical diagnostics, energy. Its technologies are designed to offer nanomaterial solutions for a specific customer application across various industries. Its products include Aluminum Oxide, Antimony Tin Oxide, Bismuth Oxide, Cerium Oxide, Iron Oxide and Zinc Oxide. The firm categorizes its revenue stream into three main product categories, Personal Care Ingredients, Advanced Materials and Solesence. Substantial revenue is generated from the sale of Solesence finished products.
Executives
Jess Jankowski officer: Chief Financial Officer
R Janet Whitmore director
Bradford T Whitmore 10 percent owner 5215 OLD ORCHARD ROAD, SUITE 620, SKOKIE IL 60077
Mark E Miller director 1319 MARQUETTE DR, ROMEOVILLE IL 60446
Kevin Cureton officer: VP, Sales & Marketing & BD 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Strandler, Llc 10 percent owner 401 3RD STREET, #9, RAPID CITY SD 57701
Laura M Beres director 1319 MARQUETTE DR, ROMEOVILLE IL 60446
Jaime Escobar officer: Chief Financial Officer 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Frank Cesario officer: Chief Financial Officer C/O ISCO INTERNATIONAL INC, 451 KIGSTON COURT, MT PROSPECT IL 60056
James A Henderson director 301 WASHINGTON ST, COLUMBUS IN 47201
George A Vincent director C/O NANOPHASE TECHNOLOGIES, 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Spurgeon Corp 10 percent owner 407 S. THIRD STREET, SUITE 230, GENEVA IL 60134
W Edwin Tyler director ONE NORTH WACKER DRIVE, SUITE 4200, CHICAGO IL 60606
Nancy Baldwin officer: VP Human Resources & IT 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446
Patrick G Murray officer: VP Research & Development 1319 MARQUETTE DRIVE, ROMEOVILLE IL 60446

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