Fortescue Beneish M-Score Historical Data
The historical data trend for Fortescue'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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Fortescue Annual Data
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Trend |
Jun14 |
Jun15 |
Jun16 |
Jun17 |
Jun18 |
Jun19 |
Jun20 |
Jun21 |
Jun22 |
Jun23 |
| Beneish M-Score |
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|
|
|
|
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1.47 |
-2.65 |
-2.48 |
5.73 |
-2.51 |
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Fortescue Semi-Annual Data
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Jun14 |
Dec14 |
Jun15 |
Dec15 |
Jun16 |
Dec16 |
Jun17 |
Dec17 |
Jun18 |
Dec18 |
Jun19 |
Dec19 |
Jun20 |
Dec20 |
Jun21 |
Dec21 |
Jun22 |
Dec22 |
Jun23 |
Dec23 |
| Beneish M-Score |
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|
|
|
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|
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|
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- |
5.73 |
- |
-2.51 |
- |
Competitive Comparison
For the Other Industrial Metals & Mining subindustry, Fortescue'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.
Fortescue Beneish M-Score Distribution
For the Metals & Mining industry and Basic Materials sector, Fortescue's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Fortescue's Beneish M-Score falls into.
Fortescue 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 Fortescue 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 * 1.1463 | + | 0.528 * 1.0116 | + | 0.404 * 1.411 | + | 0.892 * 0.9693 | + | 0.115 * 0.8975 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.4565 | + | 4.679 * -0.061308 | - | 0.327 * 0.9183 |
| = | -2.55 |
* 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 (Jun23) TTM: | Last Year (Jun22) TTM: |
Total Receivables was $520 Mil.
Revenue was $16,780 Mil.
Gross Profit was $10,671 Mil.
Total Current Assets was $6,085 Mil.
Total Assets was $28,218 Mil.
Property, Plant and Equipment(Net PPE) was $20,974 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,744 Mil.
Selling, General, & Admin. Expense(SGA) was $288 Mil.
Total Current Liabilities was $2,467 Mil.
Long-Term Debt & Capital Lease Obligation was $5,156 Mil.
Net Income was $4,798 Mil.
Gross Profit was $-904 Mil.
Cash Flow from Operations was $7,432 Mil.
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Total Receivables was $468 Mil.
Revenue was $17,312 Mil.
Gross Profit was $11,137 Mil.
Total Current Assets was $6,899 Mil.
Total Assets was $28,375 Mil.
Property, Plant and Equipment(Net PPE) was $20,650 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,528 Mil.
Selling, General, & Admin. Expense(SGA) was $204 Mil.
Total Current Liabilities was $2,417 Mil.
Long-Term Debt & Capital Lease Obligation was $5,930 Mil.
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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) |
| = | (520 / 16780) | / | (468 / 17312) |
| = | 0.030989 | / | 0.027033 |
| | = | 1.1463 |
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) |
| = | (11137 / 17312) | / | (10671 / 16780) |
| = | 0.643311 | / | 0.635936 |
| | = | 1.0116 |
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 - (6085 + 20974) / 28218) | / | (1 - (6899 + 20650) / 28375) |
| = | 0.041073 | / | 0.02911 |
| | = | 1.411 |
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 |
| = | 16780 | / | 17312 |
| | = | 0.9693 |
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)) |
| = | (1528 / (1528 + 20650)) | / | (1744 / (1744 + 20974)) |
| = | 0.068897 | / | 0.076767 |
| | = | 0.8975 |
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) |
| = | (288 / 16780) | / | (204 / 17312) |
| = | 0.017163 | / | 0.011784 |
| | = | 1.4565 |
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) |
| = | ((5156 + 2467) / 28218) | / | ((5930 + 2417) / 28375) |
| = | 0.270147 | / | 0.294167 |
| | = | 0.9183 |
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 |
| = | (4798 - -904 | - | 7432) | / | 28218 |
| | = | -0.061308 |
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.
Fortescue has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.
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