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Novo Resources (ASX:NVO) Beneish M-Score : 0.00 (As of Oct. 31, 2024)


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

During the past 13 years, the highest Beneish M-Score of Novo Resources was 10.40. The lowest was -2.33. And the median was 4.04.


Novo Resources Beneish M-Score Historical Data

The historical data trend for Novo Resources'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.

* Premium members only.

Novo Resources Beneish M-Score Chart

Novo Resources Annual Data
Trend Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Dec21 Dec22 Dec23
Beneish M-Score
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Novo Resources Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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Competitive Comparison of Novo Resources's Beneish M-Score

For the Gold subindustry, Novo Resources'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.


Novo Resources's Beneish M-Score Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Novo Resources's Beneish M-Score distribution charts can be found below:

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



Novo Resources 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 Novo Resources for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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$2.31 Mil.
Revenue was 0 + 0 + 0 + 0 = A$0.00 Mil.
Gross Profit was 0 + 0 + 0 + 0 = A$0.00 Mil.
Total Current Assets was A$14.43 Mil.
Total Assets was A$110.95 Mil.
Property, Plant and Equipment(Net PPE) was A$49.96 Mil.
Depreciation, Depletion and Amortization(DDA) was A$4.17 Mil.
Selling, General, & Admin. Expense(SGA) was A$8.61 Mil.
Total Current Liabilities was A$7.46 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.43 Mil.
Net Income was -7.895 + -5.705 + -101.209 + -10.985 = A$-125.79 Mil.
Non Operating Income was -0.86 + 0.944 + -21.189 + 0.139 = A$-20.97 Mil.
Cash Flow from Operations was -14.393 + 4.334 + 21.744 + -47.248 = A$-35.56 Mil.
Total Receivables was A$1.64 Mil.
Revenue was 0 + 0 + -97.688 + 31.451 = A$-66.24 Mil.
Gross Profit was 0 + 0 + -1.115 + -4.803 = A$-5.92 Mil.
Total Current Assets was A$32.85 Mil.
Total Assets was A$251.47 Mil.
Property, Plant and Equipment(Net PPE) was A$190.67 Mil.
Depreciation, Depletion and Amortization(DDA) was A$32.60 Mil.
Selling, General, & Admin. Expense(SGA) was A$11.91 Mil.
Total Current Liabilities was A$14.53 Mil.
Long-Term Debt & Capital Lease Obligation was A$0.43 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)
=(2.312 / 0) / (1.642 / -66.237)
= /
=

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)
=(-5.918 / -66.237) / (0 / 0)
= /
=

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 - (14.427 + 49.964) / 110.945) / (1 - (32.854 + 190.67) / 251.473)
=0.419613 / 0.111141
=

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
=0 / -66.237
=

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))
=(32.6 / (32.6 + 190.67)) / (4.169 / (4.169 + 49.964))
=0.146012 / 0.077014
=

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)
=(8.607 / 0) / (11.91 / -66.237)
= /
=

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)
=((0.426 + 7.46) / 110.945) / ((0.432 + 14.533) / 251.473)
=0.07108 / 0.059509
=

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
=(-125.794 - -20.966 - -35.563) / 110.945
=-0.624318

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.


Novo Resources Beneish M-Score Related Terms

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Novo Resources Business Description

Traded in Other Exchanges
Address
1199 West Hastings Street, Vancouver, BC, CAN, V6E 3T5
Novo Resources Corp is a company engaged in the business of evaluating, acquiring, and exploring natural resource properties with a focus on gold. The organization has business interests in properties located in Australia, Canada, and the USA. Its projects include Beatons Creek Property, Millennium Property, Blue Spec; Paleo-Placer; Comet Well, and others. It has two segments Mining operations and exploration operations.