FirstWave Cloud Technology (ASX:FCT) Beneish M-Score : -3.08 (As of Dec. 12, 2024)

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What is FirstWave Cloud Technology 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 -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:FCT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.75 Med: -3.22 Max: -0.74
Current: -3.08

During the past 13 years, the highest Beneish M-Score of FirstWave Cloud Technology was -0.74. The lowest was -4.75. And the median was -3.22.

FirstWave Cloud Technology Beneish M-Score Historical Data

The historical data trend for FirstWave Cloud Technology'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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FirstWave Cloud Technology Beneish M-Score Chart

FirstWave Cloud Technology Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-3.83

-0.74

-2.13

-2.90

-3.08

FirstWave Cloud Technology Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-2.13	-	-2.90	-	-3.08

Competitive Comparison of FirstWave Cloud Technology's Beneish M-Score

For the Software - Infrastructure subindustry, FirstWave Cloud Technology'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.

FirstWave Cloud Technology's Beneish M-Score Distribution in the Software Industry

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

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

FirstWave Cloud Technology 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 FirstWave Cloud Technology 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 * 0.764

0.528 * 0.9885

0.404 * 1.0483

0.892 * 0.9027

0.115 * 1.0907

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0301

4.679 * -0.042131

0.327 * 1.3666

-3.08

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was A$2.20 Mil.
Revenue was A$11.28 Mil.
Gross Profit was A$8.80 Mil.
Total Current Assets was A$4.76 Mil.
Total Assets was A$41.87 Mil.
Property, Plant and Equipment(Net PPE) was A$0.24 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.37 Mil.
Selling, General, & Admin. Expense(SGA) was A$10.48 Mil.
Total Current Liabilities was A$5.53 Mil.
Long-Term Debt & Capital Lease Obligation was A$2.25 Mil.
Net Income was A$-23.04 Mil.
Gross Profit was A$-17.81 Mil.
Cash Flow from Operations was A$-3.47 Mil.

Total Receivables was A$3.19 Mil.
Revenue was A$12.49 Mil.
Gross Profit was A$9.64 Mil.
Total Current Assets was A$9.82 Mil.
Total Assets was A$63.33 Mil.
Property, Plant and Equipment(Net PPE) was A$0.32 Mil.
Depreciation, Depletion and Amortization(DDA) was A$4.14 Mil.
Selling, General, & Admin. Expense(SGA) was A$11.27 Mil.
Total Current Liabilities was A$8.47 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.14 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)
	=	(2.2 / 11.277)	/	(3.19 / 12.493)
	=	0.195087	/	0.255343
	=	0.764

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)
	=	(9.635 / 12.493)	/	(8.798 / 11.277)
	=	0.771232	/	0.780172
	=	0.9885

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 - (4.764 + 0.239) / 41.869)	/	(1 - (9.817 + 0.319) / 63.33)
	=	0.880508	/	0.839949
	=	1.0483

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
	=	11.277	/	12.493
	=	0.9027

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))
	=	(4.135 / (4.135 + 0.319))	/	(1.367 / (1.367 + 0.239))
	=	0.928379	/	0.851183
	=	1.0907

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)
	=	(10.475 / 11.277)	/	(11.265 / 12.493)
	=	0.928882	/	0.901705
	=	1.0301

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)
	=	((2.247 + 5.531) / 41.869)	/	((0.142 + 8.467) / 63.33)
	=	0.18577	/	0.135939
	=	1.3666

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
	=	(-23.04 - -17.809	-	-3.467)	/	41.869
	=	-0.042131

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.

FirstWave Cloud Technology has a M-score of -3.08 suggests that the company is unlikely to be a manipulator.

FirstWave Cloud Technology Beneish M-Score Related Terms

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FirstWave Cloud Technology Business Description

Industry

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Address

132 Arthur Street, Level 14, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.firstwave.com

FirstWave Cloud Technology Ltd is engaged in the development and sale of internet security software. The products of the company include NMIS which is a open source network management software, CyberCision Platform, Email security, Web security among others. The company has one reportable segment being the development and sale of internet security software.