4DMedical (ASX:4DX) Beneish M-Score : -5.01 (As of Apr. 29, 2024)

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What is 4DMedical 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 -5.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for 4DMedical's Beneish M-Score or its related term are showing as below:

ASX:4DX' s Beneish M-Score Range Over the Past 10 Years
Min: -5.01 Med: -5.01 Max: -5.01
Current: -5.01

During the past 3 years, the highest Beneish M-Score of 4DMedical was -5.01. The lowest was -5.01. And the median was -5.01.

4DMedical Beneish M-Score Historical Data

The historical data trend for 4DMedical'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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4DMedical Beneish M-Score Chart

4DMedical Annual Data

Trend

Jun21

Jun22

Jun23

Beneish M-Score

-5.01

4DMedical Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial			-	-	-	-5.01	-

Competitive Comparison of 4DMedical's Beneish M-Score

For the Medical Devices subindustry, 4DMedical'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.

4DMedical's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, 4DMedical's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where 4DMedical's Beneish M-Score falls into.

4DMedical 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 4DMedical 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 * 1.4201

0.528 * 0.3032

0.404 * 0.8027

0.892 * 0.2676

0.115 * 0.5821

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 4.4426

4.679 * -0.240659

0.327 * 1.1577

-5.01

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was A$0.82 Mil.
Revenue was A$0.28 Mil.
Gross Profit was A$0.25 Mil.
Total Current Assets was A$78.54 Mil.
Total Assets was A$92.92 Mil.
Property, Plant and Equipment(Net PPE) was A$9.26 Mil.
Depreciation, Depletion and Amortization(DDA) was A$2.57 Mil.
Selling, General, & Admin. Expense(SGA) was A$25.11 Mil.
Total Current Liabilities was A$17.07 Mil.
Long-Term Debt & Capital Lease Obligation was A$4.21 Mil.
Net Income was A$-31.46 Mil.
Gross Profit was A$13.56 Mil.
Cash Flow from Operations was A$-22.65 Mil.

Total Receivables was A$2.15 Mil.
Revenue was A$1.05 Mil.
Gross Profit was A$0.28 Mil.
Total Current Assets was A$58.85 Mil.
Total Assets was A$74.31 Mil.
Property, Plant and Equipment(Net PPE) was A$10.35 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.50 Mil.
Selling, General, & Admin. Expense(SGA) was A$21.13 Mil.
Total Current Liabilities was A$9.56 Mil.
Long-Term Debt & Capital Lease Obligation was A$5.14 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)
	=	(0.815 / 0.282)	/	(2.145 / 1.054)
	=	2.890071	/	2.035104
	=	1.4201

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)
	=	(0.281 / 1.054)	/	(0.248 / 0.282)
	=	0.266603	/	0.879433
	=	0.3032

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 - (78.539 + 9.257) / 92.924)	/	(1 - (58.854 + 10.35) / 74.313)
	=	0.055185	/	0.06875
	=	0.8027

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
	=	0.282	/	1.054
	=	0.2676

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))
	=	(1.496 / (1.496 + 10.35))	/	(2.565 / (2.565 + 9.257))
	=	0.126287	/	0.216968
	=	0.5821

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)
	=	(25.112 / 0.282)	/	(21.127 / 1.054)
	=	89.049645	/	20.044592
	=	4.4426

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)
	=	((4.206 + 17.072) / 92.924)	/	((5.139 + 9.559) / 74.313)
	=	0.228983	/	0.197785
	=	1.1577

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
	=	(-31.46 - 13.556	-	-22.653)	/	92.924
	=	-0.240659

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.

4DMedical has a M-score of -5.01 suggests that the company is unlikely to be a manipulator.

4DMedical Beneish M-Score Related Terms

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4DMedical (ASX:4DX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » 4DMedical Ltd (ASX:4DX) » Definitions » Beneish M-Score

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FDMDF:USA

Address

700 Swanston Street, Level 7, Melbourne Connect, Carlton, VIC, AUS, 3053

Website

https://www.4dmedical.com

4DMedical Ltd is a company whose principal activities is medical research technology and the development of a non?invasive respiratory imaging solution using four?dimensional imaging. The four-dimensional lung imaging technology utilises mathematics models and algorithms to convert X-ray scans into quantitative data which helps the physicians to manage patients with respiratory diseases and diseases of the lung.

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