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ADUR (Aduro Clean Technologies) Beneish M-Score : -3.17 (As of Dec. 13, 2024)


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What is Aduro Clean 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 -3.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ADUR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19   Med: -1.16   Max: 39.03
Current: -3.17

During the past 7 years, the highest Beneish M-Score of Aduro Clean Technologies was 39.03. The lowest was -3.19. And the median was -1.16.


Aduro Clean Technologies Beneish M-Score Historical Data

The historical data trend for Aduro Clean 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.

Aduro Clean Technologies Beneish M-Score Chart

Aduro Clean Technologies Annual Data
Trend May18 May19 May20 May21 May22 May23 May24
Beneish M-Score
Get a 7-Day Free Trial - 39.03 - - -3.19

Aduro Clean Technologies Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 - - -1.16 -3.19 -3.17

Competitive Comparison of Aduro Clean Technologies's Beneish M-Score

For the Pollution & Treatment Controls subindustry, Aduro Clean 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.


Aduro Clean Technologies's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Aduro Clean Technologies's Beneish M-Score distribution charts can be found below:

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



Aduro Clean 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 Aduro Clean 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 * 0.7225+0.528 * 1+0.404 * 0+0.892 * 1.96+0.115 * 0.5719
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6822+4.679 * -0.218754-0.327 * 0.6659
=-3.19

* 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 (Aug24) TTM:Last Year (Aug23) TTM:
Total Receivables was $0.21 Mil.
Revenue was 0.04 + 0.075 + 0.077 + 0.053 = $0.25 Mil.
Gross Profit was 0.04 + 0.075 + 0.077 + 0.053 = $0.25 Mil.
Total Current Assets was $5.14 Mil.
Total Assets was $7.66 Mil.
Property, Plant and Equipment(Net PPE) was $2.52 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.34 Mil.
Selling, General, & Admin. Expense(SGA) was $3.14 Mil.
Total Current Liabilities was $0.41 Mil.
Long-Term Debt & Capital Lease Obligation was $0.06 Mil.
Net Income was -1.804 + -1.289 + -1.501 + -1.515 = $-6.11 Mil.
Non Operating Income was -0.003 + -0.003 + -0.003 + -0.003 = $-0.01 Mil.
Cash Flow from Operations was -1.378 + -0.966 + -1.245 + -0.833 = $-4.42 Mil.
Total Receivables was $0.15 Mil.
Revenue was 0.044 + 0.038 + 0.043 + 0 = $0.13 Mil.
Gross Profit was 0.044 + 0.038 + 0.043 + 0 = $0.13 Mil.
Total Current Assets was $2.63 Mil.
Total Assets was $4.85 Mil.
Property, Plant and Equipment(Net PPE) was $2.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.16 Mil.
Selling, General, & Admin. Expense(SGA) was $2.35 Mil.
Total Current Liabilities was $0.38 Mil.
Long-Term Debt & Capital Lease Obligation was $0.07 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)
=(0.211 / 0.245) / (0.149 / 0.125)
=0.861224 / 1.192
=0.7225

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)
=(0.125 / 0.125) / (0.245 / 0.245)
=1 / 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 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 - (5.137 + 2.52) / 7.657) / (1 - (2.634 + 2.216) / 4.851)
=0 / 0.000206
=0

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
=0.245 / 0.125
=1.96

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))
=(0.163 / (0.163 + 2.216)) / (0.343 / (0.343 + 2.52))
=0.068516 / 0.119804
=0.5719

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)
=(3.137 / 0.245) / (2.346 / 0.125)
=12.804082 / 18.768
=0.6822

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)
=((0.064 + 0.409) / 7.657) / ((0.066 + 0.384) / 4.851)
=0.061774 / 0.092764
=0.6659

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
=(-6.109 - -0.012 - -4.422) / 7.657
=-0.218754

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.

Aduro Clean Technologies has a M-score of -3.19 suggests that the company is unlikely to be a manipulator.


Aduro Clean Technologies Beneish M-Score Related Terms

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Aduro Clean Technologies Business Description

Traded in Other Exchanges
Address
542 Newbold Street, Suite 104, London, ON, CAN, N6E 2S5
Aduro Clean Technologies Inc is a developer of patented water-based technologies to chemically recycle plastics and transform heavy crude and renewable oils into feedstocks and higher-value fuels. The company's technology activates unique properties of water in a chemistry platform that operates at relatively low temperatures and costs.