Australis Oil & Gas (ASX:ATS) Beneish M-Score : 7.02 (As of Jun. 05, 2024)

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What is Australis Oil & Gas 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 7.02 higher than -1.78, which implies that the company might have manipulated its financial results.

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

ASX:ATS' s Beneish M-Score Range Over the Past 10 Years
Min: -9.33 Med: -2.45 Max: 79.79
Current: 7.02

During the past 8 years, the highest Beneish M-Score of Australis Oil & Gas was 79.79. The lowest was -9.33. And the median was -2.45.

Australis Oil & Gas Beneish M-Score Historical Data

The historical data trend for Australis Oil & Gas'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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Australis Oil & Gas Beneish M-Score Chart

Australis Oil & Gas Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.00

-9.33

-2.58

79.79

7.02

Australis Oil & Gas Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial										-2.58	-	79.79	-	7.02

Competitive Comparison of Australis Oil & Gas's Beneish M-Score

For the Oil & Gas E&P subindustry, Australis Oil & Gas'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.

Australis Oil & Gas's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Australis Oil & Gas's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Australis Oil & Gas's Beneish M-Score falls into.

Australis Oil & Gas 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 Australis Oil & Gas 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

0.528 * 2.5373

0.404 * 0.0034

0.892 * 11.1581

0.115 * 11.6674

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5968

4.679 * -0.242243

0.327 * 1.4023

7.02

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was A$3.19 Mil.
Revenue was A$32.53 Mil.
Gross Profit was A$12.82 Mil.
Total Current Assets was A$10.25 Mil.
Total Assets was A$105.74 Mil.
Property, Plant and Equipment(Net PPE) was A$95.18 Mil.
Depreciation, Depletion and Amortization(DDA) was A$8.92 Mil.
Selling, General, & Admin. Expense(SGA) was A$8.80 Mil.
Total Current Liabilities was A$16.04 Mil.
Long-Term Debt & Capital Lease Obligation was A$5.96 Mil.
Net Income was A$-22.88 Mil.
Gross Profit was A$-1.44 Mil.
Cash Flow from Operations was A$4.17 Mil.

Total Receivables was A$0.00 Mil.
Revenue was A$2.92 Mil.
Gross Profit was A$2.92 Mil.
Total Current Assets was A$17.82 Mil.
Total Assets was A$133.95 Mil.
Property, Plant and Equipment(Net PPE) was A$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was A$4.51 Mil.
Selling, General, & Admin. Expense(SGA) was A$1.32 Mil.
Total Current Liabilities was A$19.88 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.00 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)
	=	(3.187 / 32.526)	/	(0 / 2.915)
	=	0.097983	/	0
	=	1

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)
	=	(2.915 / 2.915)	/	(12.819 / 32.526)
	=	1	/	0.394115
	=	2.5373

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 - (10.253 + 95.175) / 105.741)	/	(1 - (17.821 + 0) / 133.948)
	=	0.00296	/	0.866956
	=	0.0034

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
	=	32.526	/	2.915
	=	11.1581

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))
	=	(4.51 / (4.51 + 0))	/	(8.922 / (8.922 + 95.175))
	=	1	/	0.085709
	=	11.6674

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)
	=	(8.804 / 32.526)	/	(1.322 / 2.915)
	=	0.270676	/	0.453516
	=	0.5968

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)
	=	((5.96 + 16.044) / 105.741)	/	((0 + 19.877) / 133.948)
	=	0.208093	/	0.148393
	=	1.4023

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
	=	(-22.881 - -1.439	-	4.173)	/	105.741
	=	-0.242243

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.

Australis Oil & Gas has a M-score of 7.02 signals that the company is likely to be a manipulator.

Australis Oil & Gas Beneish M-Score Related Terms

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Australis Oil & Gas (ASX:ATS) Business Description

Industry

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Traded in Other Exchanges

N/A

Address

215 Hay Street, Ground Floor, Subiaco, WA, AUS, 6008

Website

https://www.australisoil.com

Australis Oil & Gas Ltd engages in oil and gas exploration, development, and production activities. The company operates through Oil & Gas Production, Exploration, and Other segments. The Oil & Gas Production segment earns the majority of revenue.