ELMO Software (ASX:ELO) Beneish M-Score : 0.00 (As of May. 13, 2024)

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What is ELMO Software 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.

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

During the past 6 years, the highest Beneish M-Score of ELMO Software was 0.00. The lowest was 0.00. And the median was 0.00.

ELMO Software Beneish M-Score Historical Data

The historical data trend for ELMO Software'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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ELMO Software Beneish M-Score Chart

ELMO Software Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Beneish M-Score

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-2.75

-2.93

-2.61

-3.21

ELMO Software Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22
Beneish M-Score	Get a 7-Day Free Trial						-2.93	-	-2.61	-	-3.21

Competitive Comparison of ELMO Software's Beneish M-Score

For the Software - Application subindustry, ELMO Software'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.

ELMO Software's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, ELMO Software's Beneish M-Score distribution charts can be found below:

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

ELMO Software 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 ELMO Software 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 * 1.0347

0.528 * 1.0322

0.404 * 1.0288

0.892 * 1.3224

0.115 * 0.9166

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0643

4.679 * -0.201928

0.327 * 1.3548

-3.21

This Year (Jun22) TTM:

Last Year (Jun21) TTM:

Total Receivables was A$18.98 Mil.
Revenue was A$91.39 Mil.
Gross Profit was A$73.56 Mil.
Total Current Assets was A$80.01 Mil.
Total Assets was A$285.28 Mil.
Property, Plant and Equipment(Net PPE) was A$29.44 Mil.
Depreciation, Depletion and Amortization(DDA) was A$32.42 Mil.
Selling, General, & Admin. Expense(SGA) was A$75.43 Mil.
Total Current Liabilities was A$109.79 Mil.
Long-Term Debt & Capital Lease Obligation was A$63.04 Mil.
Net Income was A$-76.83 Mil.
Gross Profit was A$-24.64 Mil.
Cash Flow from Operations was A$5.42 Mil.

Total Receivables was A$13.87 Mil.
Revenue was A$69.11 Mil.
Gross Profit was A$57.41 Mil.
Total Current Assets was A$99.72 Mil.
Total Assets was A$316.55 Mil.
Property, Plant and Equipment(Net PPE) was A$27.20 Mil.
Depreciation, Depletion and Amortization(DDA) was A$25.14 Mil.
Selling, General, & Admin. Expense(SGA) was A$53.60 Mil.
Total Current Liabilities was A$91.40 Mil.
Long-Term Debt & Capital Lease Obligation was A$50.16 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)
	=	(18.976 / 91.385)	/	(13.869 / 69.106)
	=	0.207649	/	0.200692
	=	1.0347

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)
	=	(57.413 / 69.106)	/	(73.557 / 91.385)
	=	0.830796	/	0.804913
	=	1.0322

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 - (80.005 + 29.443) / 285.28)	/	(1 - (99.717 + 27.196) / 316.545)
	=	0.616349	/	0.599068
	=	1.0288

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
	=	91.385	/	69.106
	=	1.3224

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))
	=	(25.14 / (25.14 + 27.196))	/	(32.418 / (32.418 + 29.443))
	=	0.480358	/	0.524046
	=	0.9166

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)
	=	(75.428 / 91.385)	/	(53.595 / 69.106)
	=	0.825387	/	0.775548
	=	1.0643

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)
	=	((63.04 + 109.791) / 285.28)	/	((50.155 + 91.399) / 316.545)
	=	0.605829	/	0.447184
	=	1.3548

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
	=	(-76.834 - -24.644	-	5.416)	/	285.28
	=	-0.201928

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.

ELMO Software has a M-score of -3.21 suggests that the company is unlikely to be a manipulator.

ELMO Software Beneish M-Score Related Terms

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ELMO Software (ASX:ELO) Business Description

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Address

580 George Street, Level 27, Sydney, NSW, AUS, 2000

Website

https://www.elmosoftware.com.au

ELMO Software Ltd provides Software-as-a-Service (SaaS), cloud-based Human Resources (HR), payroll and expense management solutions. The business operates in two segments, mid-market through the ELMO platform, and small business through the Breathe platform. The company develops, sells, and implements a range of modular software applications to manage human resource-related processes; recruitment, onboarding, performance management, learning and development, succession planning, and others. It also provides HR core, a software module for people management, and employee self-service.ELMO has business operations in Australia, New Zealand and the United Kingdom. Geographically, Australia contributes to the majority of total revenue.

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