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Data Group Ltd (TSX:DGI)
Beneish M-Score
-3.35 (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.

Data Group Ltd has a M-score of -3.35 suggests that the company is not a manipulator.

TSX:DGI' s Beneish M-Score Range Over the Past 10 Years
Min: -4.51   Max: -2.14
Current: -3.35

-4.51
-2.14

During the past 11 years, the highest Beneish M-Score of Data Group Ltd was -2.14. The lowest was -4.51. And the median was -2.95.


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 Data Group 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 * 1.0067+0.528 * 0.9867+0.404 * 0.7492+0.892 * 0.974+0.115 * 0.8659
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9601+4.679 * -0.1637-0.327 * 0.9064
=-3.35

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was C$32.3 Mil.
Revenue was 74.614 + 81.01 + 74.116 + 73.447 = C$303.2 Mil.
Gross Profit was 18.373 + 19.773 + 18.386 + 15.626 = C$72.2 Mil.
Total Current Assets was C$75.4 Mil.
Total Assets was C$127.6 Mil.
Property, Plant and Equipment(Net PPE) was C$13.6 Mil.
Depreciation, Depletion and Amortization(DDA) was C$6.7 Mil.
Selling, General & Admin. Expense(SGA) was C$53.6 Mil.
Total Current Liabilities was C$46.4 Mil.
Long-Term Debt was C$47.3 Mil.
Net Income was 1.882 + 13.405 + -1.763 + -29.683 = C$-16.2 Mil.
Non Operating Income was -0.571 + -0.163 + -0.135 + -0.134 = C$-1.0 Mil.
Cash Flow from Operations was 2.265 + -0.472 + 1.113 + 2.825 = C$5.7 Mil.
Accounts Receivable was C$32.9 Mil.
Revenue was 76.002 + 80.371 + 78.128 + 76.773 = C$311.3 Mil.
Gross Profit was 17.285 + 18.744 + 19.228 + 17.837 = C$73.1 Mil.
Total Current Assets was C$80.9 Mil.
Total Assets was C$163.8 Mil.
Property, Plant and Equipment(Net PPE) was C$16.8 Mil.
Depreciation, Depletion and Amortization(DDA) was C$6.7 Mil.
Selling, General & Admin. Expense(SGA) was C$57.3 Mil.
Total Current Liabilities was C$47.6 Mil.
Long-Term Debt was C$85.1 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)
=(32.281 / 303.187) / (32.922 / 311.274)
=0.10647224 / 0.10576534
=1.0067

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)
=(19.773 / 311.274) / (18.373 / 303.187)
=0.23482205 / 0.23799833
=0.9867

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 - (75.389 + 13.638) / 127.584) / (1 - (80.904 + 16.798) / 163.764)
=0.30220874 / 0.40339757
=0.7492

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
=303.187 / 311.274
=0.974

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))
=(6.698 / (6.698 + 16.798)) / (6.694 / (6.694 + 13.638))
=0.2850698 / 0.3292347
=0.8659

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)
=(53.612 / 303.187) / (57.329 / 311.274)
=0.17682816 / 0.18417536
=0.9601

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)
=((47.346 + 46.384) / 127.584) / ((85.122 + 47.613) / 163.764)
=0.73465325 / 0.81052612
=0.9064

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
=(-16.159 - -1.003 - 5.731) / 127.584
=-0.1637

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.

Data Group Ltd has a M-score of -3.35 suggests that the company will not 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.

Data Group Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.75050.85961.03740.85421.19820.94050.93271.02941.0525
GMI 0.9721.00371.05611.04370.96880.96921.02591.06051.021
AQI 0.99440.96591.01371.05320.99480.89870.79250.94150.7387
SGI 1.39070.95440.91950.94980.99941.01290.94250.98810.9725
DEPI 0.69030.88210.88570.94030.97260.94310.95611.44410.9655
SGAI 0.98271.01280.96320.96850.64421.77080.59621.59850.9857
LVGI 0.99411.04011.02671.02120.6452.07611.29430.99690.9409
TATA -0.039-0.0976-0.0465-0.0979-0.0534-0.2337-0.3627-0.0138-0.2004
M-score -2.59-3.15-2.72-3.08-2.39-4.16-4.39-2.57-3.47

Data Group Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.93270.99671.07271.03471.02940.90050.82560.90151.05251.0067
GMI 1.02591.04211.06421.05041.06051.0531.0511.05761.0210.9867
AQI 0.79250.77940.77470.8270.94150.97520.74350.75470.73870.7492
SGI 0.94250.93830.94880.97890.98810.99770.99030.9650.97250.974
DEPI 0.95611.03831.13611.26561.44411.4631.3271.14730.96550.8659
SGAI 1.69731.73761.73931.70430.96550.97690.99681.00590.98570.9601
LVGI 1.29431.29391.27911.13450.99690.99451.20861.22250.94090.9064
TATA -0.0564-0.03590.0110.1088-0.0302-0.0539-0.3196-0.3013-0.1851-0.1637
M-score -3.15-2.99-2.67-2.14-2.54-2.75-4.25-4.14-3.40-3.35
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