Adnams (AQSE:ADB) Beneish M-Score : -2.72 (As of Sep. 21, 2024)

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What is Adnams 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 -2.72 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AQSE:ADB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86 Med: -2.72 Max: -2.51
Current: -2.72

During the past 9 years, the highest Beneish M-Score of Adnams was -2.51. The lowest was -2.86. And the median was -2.72.

Adnams Beneish M-Score Historical Data

The historical data trend for Adnams'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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Adnams Beneish M-Score Chart

Adnams Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.51

-2.72

Adnams Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial											-	-	-2.51	-	-2.72

Competitive Comparison of Adnams's Beneish M-Score

For the Beverages - Brewers subindustry, Adnams'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.

Adnams's Beneish M-Score Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Adnams's Beneish M-Score distribution charts can be found below:

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

Adnams 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 Adnams for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1755

0.528 * 1.0341

0.404 * 0.9776

0.892 * 1.0332

0.115 * 0.9986

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0651

4.679 * -0.084838

0.327 * 1.1062

-2.72

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was £4.88 Mil.
Revenue was £66.34 Mil.
Gross Profit was £29.43 Mil.
Total Current Assets was £14.75 Mil.
Total Assets was £50.03 Mil.
Property, Plant and Equipment(Net PPE) was £33.50 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.08 Mil.
Selling, General, & Admin. Expense(SGA) was £0.08 Mil.
Total Current Liabilities was £17.28 Mil.
Long-Term Debt & Capital Lease Obligation was £10.00 Mil.
Net Income was £-3.11 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £1.13 Mil.

Total Receivables was £4.02 Mil.
Revenue was £64.22 Mil.
Gross Profit was £29.46 Mil.
Total Current Assets was £16.50 Mil.
Total Assets was £53.33 Mil.
Property, Plant and Equipment(Net PPE) was £34.90 Mil.
Depreciation, Depletion and Amortization(DDA) was £3.21 Mil.
Selling, General, & Admin. Expense(SGA) was £0.07 Mil.
Total Current Liabilities was £16.29 Mil.
Long-Term Debt & Capital Lease Obligation was £10.00 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)
	=	(4.882 / 66.344)	/	(4.02 / 64.215)
	=	0.073586	/	0.062602
	=	1.1755

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)
	=	(29.457 / 64.215)	/	(29.429 / 66.344)
	=	0.458725	/	0.443582
	=	1.0341

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 - (14.747 + 33.5) / 50.025)	/	(1 - (16.495 + 34.9) / 53.334)
	=	0.035542	/	0.036356
	=	0.9776

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
	=	66.344	/	64.215
	=	1.0332

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))
	=	(3.207 / (3.207 + 34.9))	/	(3.083 / (3.083 + 33.5))
	=	0.084158	/	0.084274
	=	0.9986

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)
	=	(0.077 / 66.344)	/	(0.07 / 64.215)
	=	0.001161	/	0.00109
	=	1.0651

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)
	=	((10 + 17.276) / 50.025)	/	((10 + 16.288) / 53.334)
	=	0.545247	/	0.492894
	=	1.1062

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
	=	(-3.113 - 0	-	1.131)	/	50.025
	=	-0.084838

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.

Adnams has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.

Adnams Beneish M-Score Related Terms

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Adnams Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Adnams PLC (AQSE:ADB) » Definitions » Beneish M-Score

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Address

Sole Bay Brewery, Southwold, Suffolk, GBR, IP18 6JW

Website

https://www.adnams.co.uk

Adnams PLC is engaged in brewers, distillers, wine merchants, retailers, publicans, and hoteliers. The company's business segments are Adnams Brewing & Brands (Drinks), which comprises brewing and distribution of beer, spirits, and other products, Adnams Pubs & Hotel Properties, which comprises tenanted pubs and managed inns, and Adnams Retail, which comprises shops together with the mail order and web businesses.

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