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Novogen Ltd (NAS:NVGN)
Beneish M-Score
0.00 (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.

Novogen Ltd has a M-score of signals that the company is a manipulator.

NVGN' s 10-Year Beneish M-Score Range
Min: -10000000   Max: 1.61
Current: 0

-10000000
1.61

During the past 13 years, the highest Beneish M-Score of Novogen Ltd was 1.61. The lowest was -10000000.00. And the median was -2.68.


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 Novogen Ltd 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun13) TTM:Last Year (Jun12) TTM:
Accounts Receivable was $0.08 Mil.
Revenue was $1.58 Mil.
Gross Profit was $1.58 Mil.
Total Current Assets was $2.88 Mil.
Total Assets was $5.26 Mil.
Property, Plant and Equipment(Net PPE) was $0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.31 Mil.
Selling, General & Admin. Expense(SGA) was $2.61 Mil.
Total Current Liabilities was $1.56 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was $-0.94 Mil.
Non Operating Income was $-0.04 Mil.
Cash Flow from Operations was $-8.05 Mil.
Accounts Receivable was $0.08 Mil.
Revenue was $2.44 Mil.
Gross Profit was $2.44 Mil.
Total Current Assets was $9.23 Mil.
Total Assets was $9.25 Mil.
Property, Plant and Equipment(Net PPE) was $0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.02 Mil.
Selling, General & Admin. Expense(SGA) was $3.09 Mil.
Total Current Liabilities was $3.98 Mil.
Long-Term Debt was $0.00 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)
=(0.0769230769231 / 1.58424908425) / (0.0803295571576 / 2.44490216272)
=0.04855491 / 0.03285594
=

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)
=( / 2.44490216272) / ( / 1.58424908425)
=1 / 1
=

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 - (2.88186813187 + 0.010989010989) / 5.26465201465) / (1 - (9.22554067971 + 0.0278063851699) / 9.25334706488)
=0.45051313 / -0
=

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
=1.58424908425 / 2.44490216272
=

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))
=(0.0236869207003 / (0.0236869207003 + 0.0278063851699)) / (0.307692307692 / (0.307692307692 + 0.010989010989))
=0.46 / 0.96551724
=

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)
=(2.60989010989 / 1.58424908425) / (3.09062821833 / 2.44490216272)
=1.64739884 / 1.2641112
=

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)
=((0 + 1.5641025641) / 5.26465201465) / ((0 + 3.98043254377) / 9.25334706488)
=0.29709515 / 0.43016138
=

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
=(-0.944139194139 - -0.0412087912088 - -8.05402930403) / 5.26465201465
=1.3583

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.

Novogen Ltd has a M-score of signals that the company is likely to 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 own currency.

Novogen Ltd Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
DSRI 1.32961.11981.15541.07051.4778
GMI 1.10020.97161.06381.14941
AQI 5.29778.42150.82630-2.02893077664E+15
SGI 0.53761.11281.00951.14340.648
DEPI 0.91150.93760.91910.43970.4764
SGAI 1.1350.91781.18521.16631.3032
LVGI 0.63390.97461.21111.03990.6907
TATA -0.01040.0146-0.0445-0.1571.3583
M-score -0.760.80-2.68-3.45-819,688,033,761,588.62
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