Forge Group (ASX:FGE) Beneish M-Score : 0.00 (As of Jun. 24, 2024)

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What is Forge Group 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 Forge Group's Beneish M-Score or its related term are showing as below:

During the past 7 years, the highest Beneish M-Score of Forge Group was 0.00. The lowest was 0.00. And the median was 0.00.

Forge Group Beneish M-Score Historical Data

The historical data trend for Forge Group'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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Forge Group Beneish M-Score Chart

Forge Group Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Beneish M-Score

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Forge Group Semi-Annual Data
	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Beneish M-Score	Get a 7-Day Free Trial			-	-	-	-	-

Competitive Comparison of Forge Group's Beneish M-Score

For the Engineering & Construction subindustry, Forge Group'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.

Forge Group's Beneish M-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Forge Group's Beneish M-Score distribution charts can be found below:

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

Forge Group 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 Forge Group 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 * 0.3105

0.528 * 1.0517

0.404 * 1.0179

0.892 * 1.3603

0.115 * 0.8433

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8964

4.679 * 0.094259

0.327 * 0.8489

-2.27

This Year (Jun13) TTM:

Last Year (Jun12) TTM:

Total Receivables was A$83 Mil.
Revenue was A$1,054 Mil.
Gross Profit was A$398 Mil.
Total Current Assets was A$331 Mil.
Total Assets was A$464 Mil.
Property, Plant and Equipment(Net PPE) was A$72 Mil.
Depreciation, Depletion and Amortization(DDA) was A$21 Mil.
Selling, General, & Admin. Expense(SGA) was A$275 Mil.
Total Current Liabilities was A$235 Mil.
Long-Term Debt & Capital Lease Obligation was A$15 Mil.
Net Income was A$63 Mil.
Gross Profit was A$1 Mil.
Cash Flow from Operations was A$18 Mil.

Total Receivables was A$197 Mil.
Revenue was A$775 Mil.
Gross Profit was A$308 Mil.
Total Current Assets was A$349 Mil.
Total Assets was A$478 Mil.
Property, Plant and Equipment(Net PPE) was A$68 Mil.
Depreciation, Depletion and Amortization(DDA) was A$16 Mil.
Selling, General, & Admin. Expense(SGA) was A$225 Mil.
Total Current Liabilities was A$285 Mil.
Long-Term Debt & Capital Lease Obligation was A$17 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)
	=	(83.254 / 1054.1)	/	(197.084 / 774.879)
	=	0.078981	/	0.254342
	=	0.3105

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)
	=	(307.518 / 774.879)	/	(397.766 / 1054.1)
	=	0.396859	/	0.377351
	=	1.0517

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 - (331.316 + 71.546) / 464.21)	/	(1 - (348.553 + 67.736) / 478.401)
	=	0.132156	/	0.129833
	=	1.0179

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
	=	1054.1	/	774.879
	=	1.3603

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))
	=	(16.292 / (16.292 + 67.736))	/	(21.361 / (21.361 + 71.546))
	=	0.193888	/	0.229918
	=	0.8433

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)
	=	(274.913 / 1054.1)	/	(225.448 / 774.879)
	=	0.260804	/	0.290946
	=	0.8964

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)
	=	((14.547 + 234.677) / 464.21)	/	((17.453 + 285.095) / 478.401)
	=	0.536878	/	0.632415
	=	0.8489

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
	=	(62.919 - 1.241	-	17.922)	/	464.21
	=	0.094259

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.

Forge Group has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Forge Group Beneish M-Score Related Terms

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Forge Group (ASX:FGE) Business Description

Industry

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Address

Website

http://www.forgegroup.com.au

Forge Group Ltd provides construction, commercial building, engineering, maintenance and workshop fabrication services. Its operations are segmented into four areas - Minerals & Resources, Power, Construction and Asset Management. The Minerals & Resources segment provides a wide range of engineering, design and construction services for the mining and metals sector. The Power segment provides turnkey power generation solutions to the energy and utilities sectors. The Construction segment offers a suite of construction services that covers all disciplines including heavy civil, structural, mechanical, piping, tanks, electrical, instrumentation, and building. Further, the Asset Management segment offers various asset management services. The Company has operational footprints across Australia, North America, Africa and Asia.

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