Australian Agricultural Co (ASX:AAC) Beneish M-Score : -1.70 (As of Apr. 26, 2024)

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What is Australian Agricultural Co 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.

Warning Sign:

Beneish M-Score -1.7 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ASX:AAC' s Beneish M-Score Range Over the Past 10 Years
Min: -4.52 Med: -2.8 Max: -1.7
Current: -1.7

During the past 13 years, the highest Beneish M-Score of Australian Agricultural Co was -1.70. The lowest was -4.52. And the median was -2.80.

Australian Agricultural Co Beneish M-Score Historical Data

The historical data trend for Australian Agricultural Co'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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Australian Agricultural Co Beneish M-Score Chart

Australian Agricultural Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-4.52

-3.60

-2.76

-2.37

-1.70

Australian Agricultural Co Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-	-2.37	-	-1.70	-

Competitive Comparison of Australian Agricultural Co's Beneish M-Score

For the Farm Products subindustry, Australian Agricultural Co'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.

Australian Agricultural Co's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Australian Agricultural Co's Beneish M-Score distribution charts can be found below:

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

Australian Agricultural Co 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 Australian Agricultural Co 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 * 1.2022

0.528 * 2.0856

0.404 * 0.8524

0.892 * 1.1353

0.115 * 1.0404

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0965

4.679 * -0.009913

0.327 * 0.9342

-1.70

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was A$10.3 Mil.
Revenue was A$313.4 Mil.
Gross Profit was A$186.9 Mil.
Total Current Assets was A$402.6 Mil.
Total Assets was A$2,379.2 Mil.
Property, Plant and Equipment(Net PPE) was A$1,573.2 Mil.
Depreciation, Depletion and Amortization(DDA) was A$23.8 Mil.
Selling, General, & Admin. Expense(SGA) was A$112.5 Mil.
Total Current Liabilities was A$54.3 Mil.
Long-Term Debt & Capital Lease Obligation was A$417.6 Mil.
Net Income was A$4.6 Mil.
Gross Profit was A$12.2 Mil.
Cash Flow from Operations was A$16.0 Mil.

Total Receivables was A$7.5 Mil.
Revenue was A$276.1 Mil.
Gross Profit was A$343.3 Mil.
Total Current Assets was A$385.2 Mil.
Total Assets was A$2,054.9 Mil.
Property, Plant and Equipment(Net PPE) was A$1,260.9 Mil.
Depreciation, Depletion and Amortization(DDA) was A$19.8 Mil.
Selling, General, & Admin. Expense(SGA) was A$90.4 Mil.
Total Current Liabilities was A$43.8 Mil.
Long-Term Debt & Capital Lease Obligation was A$392.5 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)
	=	(10.302 / 313.424)	/	(7.548 / 276.067)
	=	0.032869	/	0.027341
	=	1.2022

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)
	=	(343.257 / 276.067)	/	(186.854 / 313.424)
	=	1.243383	/	0.59617
	=	2.0856

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 - (402.591 + 1573.223) / 2379.215)	/	(1 - (385.208 + 1260.934) / 2054.891)
	=	0.169552	/	0.198915
	=	0.8524

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
	=	313.424	/	276.067
	=	1.1353

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))
	=	(19.841 / (19.841 + 1260.934))	/	(23.778 / (23.778 + 1573.223))
	=	0.015491	/	0.014889
	=	1.0404

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)
	=	(112.523 / 313.424)	/	(90.385 / 276.067)
	=	0.359012	/	0.327402
	=	1.0965

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)
	=	((417.62 + 54.293) / 2379.215)	/	((392.511 + 43.778) / 2054.891)
	=	0.198348	/	0.212317
	=	0.9342

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
	=	(4.611 - 12.162	-	16.033)	/	2379.215
	=	-0.009913

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.

Australian Agricultural Co has a M-score of -1.70 signals that the company is likely to be a manipulator.

Australian Agricultural Co Beneish M-Score Related Terms

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Australian Agricultural Co (ASX:AAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Australian Agricultural Co Ltd (ASX:AAC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

ASAGF:USA AAYYY:USA AY5:Germany

Address

76 Skyring Terrace, Level 1, Tower A, Gasworks Plaza, Newstead, Brisbane, QLD, AUS, 4006

Website

https://www.aaco.com.au

Australian Agricultural Co Ltd raises cattle in Australia to process and export all over the world. It specializes in grass-fed beef, grain-fed beef, and a Japanese-style beef. The company invests in research and technologies to ensure high quality and enhance productivity. The technologies may focus on performance evaluations, feed efficiency, or disease testing. More opportunities for gathering data exist because the cattle are owned throughout the entire supply chain. The company's processing facility works to get the beef out on a timely basis and will turn to third parties in times of a shortage. The company distributes the beef by tailoring its route-to-market model to capitalize on regional opportunities.