Income Asset Management Group (ASX:IAM) Beneish M-Score : -6.96 (As of Mar. 29, 2025)

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What is Income Asset Management Group Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -6.96 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Income Asset Management Group's Beneish M-Score or its related term are showing as below:

ASX:IAM' s Beneish M-Score Range Over the Past 10 Years
Min: -16.48 Med: -4.96 Max: -2.72
Current: -6.96

During the past 13 years, the highest Beneish M-Score of Income Asset Management Group was -2.72. The lowest was -16.48. And the median was -4.96.

Income Asset Management 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 Income Asset Management 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 * 0.6459

0.528 * 1

0.404 * 0.8607

0.892 * 0.9825

0.115 * 0.7646

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.3727

4.679 * -0.749199

0.327 * 2.4829

-6.96

* 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.

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was A$1.35 Mil.
Revenue was A$11.43 Mil.
Gross Profit was A$11.43 Mil.
Total Current Assets was A$0.00 Mil.
Total Assets was A$9.36 Mil.
Property, Plant and Equipment(Net PPE) was A$1.78 Mil.
Depreciation, Depletion and Amortization(DDA) was A$5.11 Mil.
Selling, General, & Admin. Expense(SGA) was A$12.64 Mil.
Total Current Liabilities was A$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was A$7.95 Mil.
Net Income was A$-14.47 Mil.
Gross Profit was A$0.00 Mil.
Cash Flow from Operations was A$-7.46 Mil.

Total Receivables was A$2.12 Mil.
Revenue was A$11.63 Mil.
Gross Profit was A$11.63 Mil.
Total Current Assets was A$0.00 Mil.
Total Assets was A$22.34 Mil.
Property, Plant and Equipment(Net PPE) was A$1.32 Mil.
Depreciation, Depletion and Amortization(DDA) was A$1.73 Mil.
Selling, General, & Admin. Expense(SGA) was A$9.37 Mil.
Total Current Liabilities was A$0.00 Mil.
Long-Term Debt & Capital Lease Obligation was A$7.64 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)
	=	(1.348 / 11.426)	/	(2.124 / 11.629)
	=	0.117977	/	0.182647
	=	0.6459

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)
	=	(11.629 / 11.629)	/	(11.426 / 11.426)
	=	1	/	1
	=	1

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 - (0 + 1.781) / 9.358)	/	(1 - (0 + 1.323) / 22.34)
	=	0.809682	/	0.940779
	=	0.8607

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
	=	11.426	/	11.629
	=	0.9825

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))
	=	(1.733 / (1.733 + 1.323))	/	(5.113 / (5.113 + 1.781))
	=	0.567081	/	0.741659
	=	0.7646

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)
	=	(12.643 / 11.426)	/	(9.374 / 11.629)
	=	1.106511	/	0.806088
	=	1.3727

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)
	=	((7.946 + 0) / 9.358)	/	((7.64 + 0) / 22.34)
	=	0.849113	/	0.341987
	=	2.4829

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
	=	(-14.471 - 0	-	-7.46)	/	9.358
	=	-0.749199

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.

Income Asset Management Group has a M-score of -6.96 suggests that the company is unlikely to be a manipulator.

Income Asset Management Group Beneish M-Score Related Terms

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Income Asset Management Group Business Description

Industry

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Traded in Other Exchanges

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Address

4 Martin Place, Level 11, Sydney, NSW, AUS, 2000

Website

https://www.incomeam.com

Income Asset Management Group Ltd is engaged in providing investment services. It delivers financial product solutions in Cash/Deposits and Fixed Income to wholesale, sophisticated clients and professional investors. It also owns a trustee business that provides responsible entity, custody, and trustee services internally. The company holds licenses for margin lending, foreign exchange, derivatives trading, and market-making.